China hits US DDGS with anti-dumping duties

WASHINGTON, Sept. 23, 2016 – Just 10 days after the U.S. announced a trade dispute challenging China’s domestic corn, wheat, and rice price supports, China on Friday announced anti-dumping duties on U.S. dried distiller’s grains (DDGS).

China’s Ministry of Commerce will impose anti-dumping duties on U.S. dried distillers’ grains (DDGS) effective immediately, the ministry said on Friday. The preliminary determination comes after an investigation – at the request of Chinese ethanol producers – that determined U.S. subsidies had “substantially” harmed domestic producers there.

Beginning today, product importers must make a deposit with Chinese customs authorities of 33.8 percent of the import value of the DDGS.

In a joint statement, the U.S. Grains Council, the Renewable Fuels Association, and Growth Energy said they were “deeply disappointed” with the decision. They also disagreed with the assumption that DDGS are being dumped on the Chinese market and said they are “confident that U.S. DDGS . . . are not causing or threatening injury to Chinese producers.”

"U.S. DDGS have not caused any injury to China’s DDGS producers,” the groups said. Instead, DDGS play an important role in protecting Chinese feed producers and households against unpredictable swings in global commodity prices.

"We welcome opportunities to work together with the Chinese government, Chinese feed producers and consumers to continue to meet China’s growing feed demand in a mutually beneficial way for all parties as China implements market-oriented agricultural pricing reforms,” they added.

The three groups said they “remain hopeful” the Chinese government will reverse course in its final determination.

#30