US-based NBB Fair Trade Coalition succeeds in latest stage of biodiesel import cases

The National Biodiesel Board (NBB) Fair Trade Coalition won a preliminary countervailing duty determination from the Commerce Department regarding subsidised biodiesel imports from Argentina and Indonesia.

The Commerce Department found that Argentina and Indonesia provide subsidies to their biodiesel producers in violation of international trade rules. In addition, Commerce found “critical circumstances” to address the post-petition surge of imports from Argentina, paving the way for the imposition of retroactive duties, going back to May 2017.

‘Preliminary steps’

“The Commerce Department has recognised what this industry has known all along—that foreign biodiesel producers have benefited from massive subsidies that have severely injured US biodiesel producers. We’re grateful that the Commerce Department has taken preliminary steps that will allow our industry to compete on a level playing field,” said Doug Whitehead, chief operating officer of the National Biodiesel Board.

As a result of Commerce’s ruling, importers of Argentinian and Indonesian biodiesel will be required to pay cash deposits on biodiesel imported from those countries. The cash deposit rates range from 50.29 to 64.17% for biodiesel from Argentina, and 41.06 to 68.28% for biodiesel from Indonesia, depending on the particular foreign producer/exporter involved.

Cash deposit requirements will be imposed when this preliminary determination is published in the Federal Register sometime next week. In addition, based on Commerce’s “critical circumstances” finding, these rates for Argentina will apply retroactively 90 days from the date of the Federal Register notice. 

The NBB Fair Trade Coalition filed these petitions to address a flood of subsidised and dumped imports from Argentina and Indonesia that has resulted in market share losses and depressed prices for domestic producers

Biodiesel imports from Argentina and Indonesia surged by 464% from 2014 to 2016, taking 18.3 percentage points of market share from US manufacturers. Imports of biodiesel from Argentina again jumped 144.5% following the filing of the petitions.

Further investments

According to the NBB, these surging, low-priced imports prevented producers from earning adequate returns on their substantial investments and caused US producers to pull back on further investments to serve a growing market. 

Commenting about the announcement, Randy Howard, interim president and CEO of advanced biofuels producer Renewable Energy Group, said: “This is a victory for American manufacturing and job creation. The Commerce Department stood up for fairness for American biodiesel producers and levelling the playing field against imported biofuel that was unjustly subsidised.

“And with the critical circumstances finding against Argentina, the US government sent a strong signal that these trade practices should not continue as this case proceeds.

“This should give American biodiesel producers the opportunity to make more cleaner-burning advanced biofuel here at home. As we and others have testified to the EPA and the Administration during the public comment period on the renewable volume obligation (RVO)’s earlier this month, our domestic industry can easily increase production to match volumes similar to what we have seen from Argentina and Indonesia. 

“We can then realise the increasing benefits biodiesel provides for American workers, our economy and our environment.”

Between the preliminary and final determinations, the Commerce Department will audit the foreign producers and governments to confirm the accuracy of their data submissions.

Parties will file briefs on issues arising from the agency’s preliminary countervailing duty determinations, and the Commerce Department will hold a hearing. Preliminary determinations in the companion antidumping investigations are due to be issued in October. Final Commerce determinations will be issued later this year, or in early 2018, with a final determination by the International Trade Commission soon thereafter. 

Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats, biodiesel is a renewable, clean-burning diesel replacement that can be used in existing diesel engines without modification. It is the nation’s first domestically produced, commercially available advanced biofuel.

The National Biodiesel Board is the US trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers and fuel distributors.

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