The U.S. Grains Council (USGC) has been working to respond to recent preliminary duty determinations in ongoing antidumping and countervailing duties investigations by China.
The investigations began earlier this year and allege that U.S. policies have adversely affected Chinese producers of dried distillers grains with - or without - solubles (DDGS). USGC, the Office of the U.S. Trade Representative and the U.S. ethanol and DDGS industries have strongly argued that these claims do not have merit.
On Sept. 23, China’s Ministry of Commerce, commonly known as MOFCOM, issued a preliminary duty of 33.8% related to the antidumping investigation on U.S. DDGS for all producers, due at the time of product arrival.
On Sept. 28, MOFCOM issued preliminary duties related to the countervailing duty investigation on U.S. DDGS of between 10.0% and 10.7%, depending on the producer of the product, and these also are due at the time of product arrival.
USGC, the Renewable Fuels Assn. and Growth Energy issued joint statements following both determinations expressing deep disappointment with them and offering continued engagement in the investigations with the hope that MOFCOM will find in its final determination that continued access for U.S. DDGS is in China's interest.
The council has worked for three decades in China alongside government agencies, industry associations and the feed and livestock industries there to educate stakeholders about the benefits of both imported and domestic DDGS as an alternative feed ingredient.
USGC is also working globally to promote DDGS to other customers in markets in the Middle East, South America and Southeast Asia that are finding the ingredient of increased value at higher and higher inclusion rates.