January 12, 2017


China hikes tariffs on US DDGS


China has raised tariffs on imports of US distillers' dried grains (DDGS) from levels proposed last year, Reuters reported.


Following a year-long government probe, China had complained that the US industry was unfairly benefiting from subsidies.


In a final ruling, the Commerce Ministry said on Wednesday that anti-dumping duties would range from 42.2 to 53.7%, up from 33.8% in its preliminary decision in September. Anti-subsidy tariffs will range from 11.2 to 12%, up from 10 to 10.7%.


China is the world's top buyer of DDGS and fulfils nearly all of its needs from the US, the biggest exporter.


The US Trade Representative did not respond to request for comment. However, US Grains Council President and chief executive officer Tom Sleight said in a statement on Wednesday that the group is "deeply disappointed" by the news.


Companies hit by the new tariffs include global traders Archer Daniels Midland Co and Louis Dreyfus.


Many Chinese businesses cut back on imports of US DDGS since the preliminary ruling in September, turning to local suppliers or alternatives like soymeal.


"I don't buy DGGS from the US anymore and have turned to domestic DDGS, soymeal and rapemeal," said Mr. Hu, who is in charge of buying protein for Chinese feed producer New Hope Liuhe.


Shipments in October and November fell to 135,000 and 163,000 tonnes respectively, about a third of the total in August before the September ruling.


The new rates will take effect today and be in force for five years.

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