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European Commission imposes a provisional countervailing duty on imports of Indonesian biodiesel
The European Commission - the executive body of the European Union (EU) - today (13/8) imposed countervailing duties of 8% to 18% on imports of subsidised biodiesel from Indonesia.
The measure aims to restore a level-playing field for EU biodiesel producers.
The European Commission’s in-depth investigation found that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices. This inflicts a threat of economic damage to EU producers. The new import duties are imposed on a provisional basis and the investigation will continue with a possibility to impose definitive measures by mid-December 2019.
While the predominant raw material for biodiesel production in Indonesia is palm oil, the focus of the investigation is on the possible subsidisation of biodiesel production, irrespective of the raw material used.
The EU biodiesel market is worth an estimated €9 billion a year, with imports from Indonesia of reaching some €400 million.