The European Commission declared on Tuesday, August 13th, that it has imposed countervailing duties of 8% to 18% on imports of biodiesel from Indonesia, claiming that the government in the Southeast Asian country is subsidising the fuel.
Reuters reported that the move aimed to restore a level playing field for European Union 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,” the EU executive said in a statement.
The EU's executive commission said on Tuesday that a probe "found that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices." According to the commission, this “inflicts a threat of economic damage to EU producers."
The new duties posed another blow to Indonesian biodiesel producers after the EU said in March that palm oil should be phased out of renewable transportation fuels due to palm plantations’ contribution to deforestation.
The 28-nation EU imports around €400 million ($447m) worth of Indonesian biodiesel annually.