US biodiesel import duties from Argentina, Indonesia face 2020 challenges

Antidumping and countervailing duties on Argentinian and Indonesian biodiesel moving into the US face challenges in 2020, according to speakers at the National Biodiesel Conference in Tampa, Florida.

"These duties were hard fought, but continue to be challenged by those who were on the other side," said Myles Getlan, a partner at Cassidy Levy Kent.

The US Department of Commerce levied steep duties on biodiesel from Argentina and Indonesia after an investigation that showed the countries were selling at less-than-fair value into the US market. But in 2019, Argentina requested a "changed-circumstance review" following reforms in its export policy.

Related coverage: Interview: NBB's Rehagen sees record year for US biodiesel after tax credit reinstatement

Commerce announced preliminary findings in July 2019 that would reduce duties, if finalized. Getlan said that the biodiesel industry provided evidence in support of maintaining the duties.

"Essentially, we were able to point out that the distortion that existed in Argentina with respect to export taxes did not change with the export tax reforms," Getlan added.

Commerce's decision was delayed, however, by Argentina's election in the fall.

One source familiar with the ongoing review said that Commerce called for additional comments in September, citing the election. That comment period ended in December, but there is no firm timeline for a decision.

Industry leaders at the conference were optimistic about the outcome of the review and that imports would not return to the record levels seen before the duties were levied.

Donnell Rehagen, CEO of the National Biodiesel Board, said during an interview with S&P Global Platts that Commerce is unlikely to want to roll back the duties if they would immediately need more adjusting.

"Since the president of Argentina has changed, the Department of Commerce is watching that," Rehagen said. "There's no reason to make a decision that would then be undermined."