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China To Keep Tariffs On US Distillers Grains While Conducting Review

By Dave Simpson

China's commerce ministry has said that it will maintain anti-dumping and anti-subsidy tariffs on imports of distillers grains (DDGS), a by-product of ethanol production used in animal feed, from the United States during a review.

Expiry Review

The ministry will conduct expiry review investigations on the anti-dumping and anti-subsidy measures imposed on DDGS imports from the United States from January 12 and it should end before January 12, 2023, the ministry said in statements.

Sitonia Consulting Co-Founder Statements

"Corn prices in China are still high and corn processors are facing tight margins," co-founder of agricultural research firm Sitonia Consulting Darin Friedrichs said.

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"If US DDGS were coming into China they would further pressure the margins for those plants," he added.

Application For Expiry Review

The ministry said that it had on October 25 received an application for expiry review of anti-dumping measures submitted by the China Alcoholic Drinks Association on behalf of China's dried corn distiller's grains industry.

Tariffs Figures

China's tariffs on U.S. were first implemented in 2016 at a rate of 33.8%, and its imports of the feed ingredient fell sharply.

Anti-dumping duties were raised to the current level of 42.2%-53.7% in January 2017, while the anti-subsidy tariffs were raised to 11.2%-12% from 10.0%-10.7%.

Suggestions And Evidence

The ministry said that any interested party can submit suggestions and evidence to the review within 20 days.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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