COMMISSION IMPLEMENTING REGULATION (EU) 2019/2092
of 28 November 2019
imposing a definitive countervailing duty on imports of biodiesel originating in Indonesia
1.
PROCEDURE
1.1.
Initiation
1.2.
Provisional measures
1.3.
Subsequent procedure
1.4.
Investigation period and period considered
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Claims regarding the product scope
3.
SUBSIDISATION
3.1.
Government support to the biodiesel industry through direct transfer of funds via the Oil Palm Plantation Fund
3.1.1.
Financial contribution
3.1.2.
Benefit
3.1.3.
Methodology used in the calculation of the total amount of benefit
3.2.
Government support to the biodiesel industry through the provision of CPO for less than adequate remuneration
3.2.1.
Failure to prove the existence of a financial contribution
3.2.2.
Failure to prove entrustment or direction under Article 3(1)(a)(iv) of the basic Regulation
3.2.3.
Failure to prove income or price support under Article 3(1)(b) of the basic Regulation
3.2.4.
Failure to prove existence of a benefit: error in identifying the appropriate benchmark
3.2.5.
Specificity
3.3.
Government support to the biodiesel industry through the exemption of import duties on imported machinery into bonded zones
3.4.
General comment on the methodology used for the subsidy calculations
3.5.
Conclusion on subsidisation
Company |
Definitive subsidy rate |
PT Ciliandra Perkasa |
8,0 % |
PT Intibenua Perkasatama and PT Musim Mas (Musim Mas Group) |
16,3 % |
PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo (Permata Group) |
18,0 % |
PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia (Wilmar Group) |
15,7 % |
All other companies |
18,0 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
4.3.
Imports from Indonesia and price undercutting
4.3.1.
General observations concerning the EU biodiesel market
4.3.2.
Method 1 — Comparing PME imports to PME produced in the EU
4.3.3.
Method 2 — comparing PME imports to sales of EU produced PME and also EU produced biodiesel at CFPP0 (FAME0)
4.3.4.
Method 3 — comparing all imports of biodiesel from Indonesia to all Union sales of biodiesel without any adjustment to the price
4.3.5.
Post-importation costs
4.4.
Economic situation of the Union industry
4.4.1.
General remarks
4.4.2.
Macroeconomic indicators
4.4.2.1. Production capacity and capacity utilisation
4.4.2.2. Sales volume and market share
4.4.2.3. Growth
4.4.2.4. Employment and productivity
4.4.2.5. Magnitude of the amount of countervailable subsidies and recovery from past subsidisation or dumping
4.4.3.
Microeconomic indicators
4.4.3.1. Prices and factors affecting prices
4.4.3.2. Labour costs
4.4.3.3. Stocks
4.4.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
4.4.4.
Conclusion on injury
4.5.
Economic indicators following the investigation period
|
Investigation period |
October 2018-June 2019 |
Total production (tonnes) |
2 510 356 |
1 824 599 |
Index (annualised) (39) |
100 |
97 |
Sales volume on the Union market (tonnes) |
2 524 646 |
1 871 962 |
Index (annualised) |
100 |
99 |
Unit cost of production (EUR/tonne) |
791 |
760 |
Index |
100 |
96 |
Average unit sales price in the Union on the total market (EUR/tonne) |
794 |
790 |
Index |
100 |
100 |
Capacity utilisation rate |
82 % |
80 % |
Source: Sampled Union producers. |
|
Q4 2018 |
Q1 2019 |
Q2 2019 |
Total post IP |
Profit of the sampled Union producers |
10,8 % |
0,1 % |
-5,0 % |
3,8 % |
Source: Sampled Union producers. |
5.
THREAT OF INJURY
5.1.
The nature of the subsidies in question
5.2.
Significant rate of increase of subsidised imports
|
IP |
2018 Q4 |
2019 Q1 |
2019 Q2 |
Total imports of biodiesel (metric ton) from Indonesia |
516 068 |
139 091 |
234 677 |
207 310 |
Source: Surveillance II. |
|
2017 Q4 |
2018 Q1 |
2018 Q2 |
2018 Q3 |
Total imports of biodiesel (metric ton) from Indonesia |
0 |
25 275 |
227 114 |
263 678 |
Source: Surveillance II. |
5.3.
Sufficient freely disposable capacity and absorption capacity of third countries
5.4.
Price level of subsidised imports
5.5.
Level of stocks
5.6.
Conclusion
6.
CAUSATION
6.1.
Effects of the subsidised imports from Indonesia
6.2.
Other known factors
6.2.1.
Imports from Argentina
6.2.2.
Imports from other third countries
6.2.3.
Imports from third countries after the investigation period
|
Volume of imports (tonnes) |
Estimated market share (%) |
Average price (EUR) |
Argentina |
667 678 |
5,7 |
673 |
Indonesia |
581 086 |
5,0 |
655 |
Malaysia |
405 482 |
3,5 |
727 |
China |
203 961 |
1,7 |
796 |
Source: Surveillance 2 |
6.2.4.
Export performance of the Union industry
6.2.5.
Price of raw materials (feedstock)
6.2.6.
Internal EU competition and performance differences between sampled Union producers
6.3.
Conclusion on causation
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers
7.3.
Interest of users
7.4.
Trade distorting effects of subsidies and restoring effective competition
7.5.
Conclusion on Union interest
8.
REGISTRATION
9.
DEFINITIVE COUNTERVAILING MEASURES
9.1.
Level of countervailing measures
9.2.
Price undertaking offers
9.3.
Definitive measures
Company |
Countervailing duty |
PT Ciliandra Perkasa |
8,0 % |
PT Intibenua Perkasatama and PT Musim Mas (Musim Mas Group) |
16,3 % |
PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo (Permata Group) |
18,0 % |
PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia (Wilmar Group) |
15,7 % |
All other companies |
18,0 % |
9.4.
Release of the provisional duties
Article 1
Company |
Definitive countervailing duty |
TARIC additional code |
PT Ciliandra Perkasa |
8,0 % |
B786 |
PT Intibenua Perkasatama and PT Musim Mas (Musim Mas Group) |
16,3 % |
B787 |
PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo (Permata Group) |
18,0 % |
B788 |
PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia (Wilmar Group) |
15,7 % |
B789 |
All other companies |
18,0 % |
C999 |