Indonesian Biodiesel: EU Countervailing Duties for 2026
Quick answer
The EU has renewed definitive countervailing duties on imports of biodiesel originating in Indonesia, with specific rates applying to certain Indonesian exporters and a general rate for all others. EU importers must present compliant commercial invoices to benefit from individual rates and avoid the highest duty rate [1][2].
Key takeaways
- Definitive countervailing duties on Indonesian biodiesel imports remain in force following a recent expiry review [1:1][2:1].
- Specific duty rates vary by Indonesian exporting company, ranging from 8.0% to 18.0% [1:2].
- The highest duty rate of 18.0% applies to all other Indonesian companies not listed individually [1:3].
- To apply individual duty rates, importers must present a valid commercial invoice with a certified declaration to customs authorities [1:4].
- Non-compliance or failure to provide the required documentation results in application of the highest duty rate [1:5].
- The duties aim to counteract subsidies granted by the Indonesian government that distort the EU market [2:2].
- The countervailing duties were first imposed in 2019 and renewed in 2026 after an expiry review confirmed ongoing subsidisation and injury to the EU industry [3][2:3].
Understanding the Renewed EU Countervailing Duties on Indonesian Biodiesel
The European Union imposes countervailing duties to protect its internal market from imports benefiting from unfair subsidies. In the case of biodiesel originating in Indonesia, the EU has maintained definitive countervailing duties following an expiry review conducted under Article 18 of Regulation (EU) 2016/1037 [1:6][2:4].
The renewed duties apply to biodiesel imports from Indonesia at varying rates depending on the producing company. These measures are designed to offset subsidies granted by the Indonesian government, which have been found to distort competition and injure the EU biodiesel industry. The Commission concluded that continuing these duties supports the recovery and sustainable profitability of the EU industry [2:5].
The renewed regulation explicitly states that the continuation of the measures is in the interest of the Union industry and does not face opposition from users or unrelated importers in the EU market [2:6]. This reflects the Commission’s assessment of market conditions and the ongoing risk of injury from subsidised imports.
Who is Affected by These Duties?
The duties apply to all EU businesses importing biodiesel originating in Indonesia. This includes importers, distributors, and any entities involved in customs clearance within the EU single market. The regulation distinguishes between specific Indonesian exporting companies and all other Indonesian producers:
- PT Ciliandra Perkasa
- PT Intibenua Perkasatama and PT Musim Mas (Musim Mas Group)
- PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo (Permata Group)
- PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia (Wilmar Group)
- All other Indonesian companies not listed above [1:7][4]
EU importers must be aware of the producer of the biodiesel they import to determine the applicable duty rate and ensure compliance with documentation requirements [1:8].
Specific Duty Rates and Indonesian Exporters
The EU countervailing duty Indonesian biodiesel regime imposes definitive duties at the following rates on the net, free-at-Union-frontier price before duty:
| Indonesian Company Group | Duty Rate (%) | TARIC Additional Code |
|---|---|---|
| PT Ciliandra Perkasa | 8.0 | B786 |
| PT Intibenua Perkasatama and PT Musim Mas (Musim Mas Group) | 16.3 | B787 |
| PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo (Permata Group) | 18.0 | B788 |
| PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia (Wilmar Group) | 15.7 | B789 |
| All other Indonesian companies | 18.0 | C999 |
These rates reflect the findings of the original investigation and the expiry review, which confirmed the continuation of subsidies and injury to the EU industry [1:9][4:1][2:7].
Importers must correctly identify the producer and apply the corresponding TARIC additional code when declaring imports to the customs authorities in the relevant Member State [1:10].
Crucial Documentation Requirements for Importers
To benefit from the specific countervailing duty rates applicable to the named Indonesian companies, EU importers must present a valid commercial invoice to the customs authorities. This invoice must include a declaration signed and dated by an official of the exporting company, certifying:
- The volume of biodiesel sold for export to the EU (in tonnes)
- The name and address of the manufacturing company
- The corresponding TARIC additional code
- A statement confirming the completeness and correctness of the information provided
The exact wording required is:
“I, the undersigned, certify that the (volume in tonnes) of biodiesel sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in Indonesia. I declare that the information provided in this invoice is complete and correct.” [1:11]
Until such an invoice is presented, the customs authorities will apply the highest countervailing duty rate of 18.0% applicable to all other companies [1:12].
Additionally, customs authorities may request further documentation such as shipping documents to verify the accuracy of the declaration and ensure compliance with customs law [2:8].
Consequences of Non-Compliance and “All Other Companies” Rate
Failure to provide the required certified commercial invoice results in the application of the highest countervailing duty rate of 18.0% under the “all other companies” category. This serves as a safeguard against circumvention and ensures that only bona fide imports from listed companies benefit from lower duty rates [1:13].
Moreover, customs authorities retain the right to conduct checks and request additional evidence to verify the authenticity of the declarations and the origin of the biodiesel. Non-compliance may lead to delays, increased costs, or enforcement actions depending on the Member State’s customs procedures [2:9].
EU importers should therefore ensure strict adherence to documentation requirements to avoid unnecessary financial burdens and customs complications.
Why Were These Duties Renewed? A Look at the Expiry Review
The original definitive countervailing duties on Indonesian biodiesel were imposed in 2019 following an investigation initiated in December 2018, triggered by a complaint from the European Biodiesel Board representing a significant share of EU producers [3:1][5].
The investigation found that Indonesian biodiesel imports benefited from government subsidies, leading to significant price undercutting and injury to the EU industry. The removal of previous anti-dumping duties in 2018 had caused a sharp increase in imports, exacerbating the situation [6].
The expiry review completed in 2026 confirmed that subsidisation continues and that injury to the EU biodiesel industry persists. The Commission concluded that maintaining the countervailing duties supports the industry’s recovery and sustainable profitability [2:10].
No compelling reasons against renewal were identified from users or unrelated importers, reinforcing the decision to continue the measures [2:11].
Staying Compliant: Best Practices for EU Importers
To navigate the EU countervailing duty Indonesian biodiesel regime effectively, importers should adopt the following best practices:
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Identify the Producer Accurately: Confirm the Indonesian manufacturer of the biodiesel and the applicable TARIC additional code to apply the correct duty rate [1:14].
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Obtain Certified Commercial Invoices: Ensure that commercial invoices include the required signed declaration by an official of the exporting company certifying the volume, producer, and TARIC code [1:15].
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Maintain Complete Documentation: Keep all relevant shipping, customs, and commercial documents readily available to support customs declarations and potential audits [2:12].
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Coordinate with Suppliers: Work closely with Indonesian exporters to secure compliant invoices and timely information to avoid customs delays or application of the highest duty rate [1:16].
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Monitor Regulatory Updates: The EU countervailing duty framework may be amended; regularly verify the consolidated text on EUR-Lex and consult with the relevant national competent authority for updates [1:17].
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Train Compliance Teams: Ensure that customs and trade compliance personnel understand the requirements and procedures related to countervailing duties on Indonesian biodiesel [1:18].
By following these steps, EU businesses can minimise risks of non-compliance, reduce costs, and maintain smooth import operations within the EU single market.
FAQ
What are the current EU countervailing duties on Indonesian biodiesel?
The definitive countervailing duties range from 8.0% to 18.0% depending on the Indonesian exporting company, with a general rate of 18.0% applying to all other companies [1:19].
How do I avoid the ‘all other companies’ duty rate for Indonesian biodiesel?
To avoid the highest duty rate of 18.0%, importers must present a valid commercial invoice with a signed declaration from the exporting company certifying the volume, producer, and TARIC code to the customs authorities [1:20].
Which Indonesian biodiesel producers are subject to specific EU duties?
The named producers are PT Ciliandra Perkasa, PT Intibenua Perkasatama and PT Musim Mas, PT Pelita Agung Agrindustri and PT Permata Hijau Palm Oleo, and PT Wilmar Nabati Indonesia and PT Wilmar Bioenergi Indonesia [1:21].
What documentation is needed for importing Indonesian biodiesel into the EU?
A commercial invoice containing a certified declaration signed by an official of the exporting company, specifying volume, company name and address, and TARIC additional code is required [1:22].
When did the EU countervailing duties on Indonesian biodiesel start?
The duties were first imposed definitively in November 2019 following investigations initiated in December 2018 [3:2][5:1].
What is a countervailing duty and why is it applied to Indonesian biodiesel?
A countervailing duty is a tariff imposed to offset subsidies granted by exporting countries that distort fair competition. In this case, it is applied to Indonesian biodiesel to counteract government subsidies that cause injury to the EU biodiesel industry [2:13].
