China to keep tariffs on U.S. distillers grains while conducting review

FILE PHOTO: Chinese and U.S. flags flutter outside a company building in Shanghai
FILE PHOTO: Chinese and U.S. flags flutter outside a company building in Shanghai, China April 14, 2021. REUTERS/Aly Song//File Photo

January 11, 2022

SINGAPORE (Reuters) – China’s commerce ministry said on Tuesday 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.

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

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

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

The ministry said it had on Oct. 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.

China’s tariffs on U.S. DDGS 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%.

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

(Reporting by Shivani Singh; editing by Jason Neely, Robert Birsel, Kirsten Donovan)