EU intends to impose definitive duties on Indonesian biodiesel Substantial increase in EU imports Malaysian biodiesel

,,Definitive countervailing measures should be imposed on imports of biodiesel originating in Indonesia.” That is the European Commission’s (EC) conclusion after a lengthy investigation into the subsidization of biodiesel originating in Indonesia. In a document¹, that the EC distributed among interested parties this week, it has concluded that such definitive duties ,,should be imposed to prevent the materialisation of the imminent threat of material injury caused to the Union industry by the subsidised imports from Indonesia.” The EC has maintained its preliminary findings and has confirmed the conclusions set out in the Regulation (EU) 2019/1344 imposing provisional countervailing duties. So, it is now expected that the EC will propose to the EU Member States to prolong the present provisional duties through definitive (5-year period) ones.

The EC and Member States will discuss this topic in the so-called Trade Defence Instruments Committee (TDC). The next TDC meeting is scheduled for this Tuesday (15 October), but the EC has not put these countervailing duties on Indonesian biodiesel on the agenda for this meeting (yet). The next TDC meeting is provisonally scheduled for 13 November. Indonesian parties had until yesterday (9 October) the possibility to submit a request for a Price Undertaking (Minimum Import Price arrangement), like their Argentinean competitors did and the EC accepted in February 2019. Neither the EC nor the Indonesian parties have disclosed whether they filed such a request.

Provisional duties

On 6 December 2018 the EC initiated an anti-subsidy investigation into EU imports of biodiesel originating in Indonesia. Based on the preliminary results of its investigation it decided through Regulation (EU) 2019/1344 to impose provisional countervailing duties on Indonesian biodiesel on 14 August 2019 (see table below). Such provisional duties may in all cases be imposed only for a four-month period. So, these provisional duties will expire no later than 14 December 2019. Irrespective of whether definitive duties are adopted or not, the current investigation should be completely finalized within 12 months (by 6 December 2019) or in exceptional circumstances within 13 months (by 6 January 2020).

 

EU biodiesel imports in 2019

In the first seven months of 2019 the EU imports of biodiesel totalled 2,017,063 tonnes. Although Indonesia (689,303 tonnes) and Argentina (535,429 tonnes) were the key suppliers of biodiesel to the EU market, the EU imports of Malaysian biodiesel (488,477 tonnes) have increased dramatically (see figure below and PDF for additional information).

¹ General Final Disclosure Document.

Last modified: October 10, 2019