China's Ministry of Commerce has confirmed that it will start reviewing its anti-dumping tariffs on US imports of dried distillers grains with solubles (DDGS), a byproduct of biofuel production used as a feed ingredient, Reuters reported on 15 April.
The ministry said it would "review whether it is necessary to continue to impose anti-dumping and anti-subsidy measures on imported DDGS from the United States," according to a statement posted on its website.
DDGS is used in animal feed as a substitute for corn or soya meal. As a high-protein byproduct of corn ethanol production, it forms a key part of profits for biofuel producers.
The USA is the world’s top exporter of DDGS and China the top buyer.
In January 2016, China launched an anti-dumping probe against imports of US DDGS following complaints from Chinese producers that US DDGS was being sold at prices “below normal value”, hurting the domestic industry. The country imposed 33.8% tariffs on US DDGS in September that year and Chinese DDGS imports in 2016 fell 55% from 2015, to total 3M tonnes, according to Reuters.
In January 2017, China raised the anti-dumping duties on US DDGS to between 42.2-53.7%, with anti-subsidy tariffs ranging from 11.2% to 12%. The tariffs were meant to be in force for five years.
The commerce ministry said the new review should be completed in a year.
It comes amid trade talks between Beijing and Washington to end their ongoing trade dispute, which has seen both countries impose tariffs on each other’s products, including soyabeans and edible oils.
A 90-day truce that took effect on 1 January saw China pledge to increase its imports of US farm goods, Reuters wrote