The EU Maintains Countervailing Duty on Indonesian Biodiesel Following Review

Key Facts

On March 3, 2026, the European Commission adopted Implementing Regulation (EU) 2026/479, which established a definitive countervailing duty on imports of biodiesel originating in Indonesia. This decision, based on the review procedure set out at the expiry of the measures in accordance with Article 18 of Regulation (EU) 2016/1037, aims to offset Indonesian subsidies deemed harmful to European producers.

Key Points

• Confirmation of the maintenance of the countervailing duty on Indonesian biodiesel following a review at the end of previous measures.
• Measure enacted through Implementing Regulation (EU) 2026/479, dated March 3, 2026.
• Objective: To balance competition and protect the European biodiesel industry against market distortions caused by subsidies.

Background and Stakes

The European Union is committed to preventing unfair competition in the biodiesel sector, a market sensitive to both climate and economic issues. Regulation (EU) 2016/1037 provides the legal framework for combating foreign subsidies, allowing the EU to impose countervailing duties after a thorough investigation. Indonesia, as the leading Asian exporter of palm oil-based biodiesel, is consistently targeted due to government support for its industry, which is sometimes criticized as a source of dumping. The review, requested in accordance with EU procedures, concluded that these measures must remain in place to support European competitiveness and prevent injury to the local industry.

Impact on Professionals

Importers, exporters, freight forwarders, and customs brokers must incorporate this continued countervailing duty into their operational practices: updating verification of tariff regimes, accurate estimation of import costs, anticipating supply chain impacts, and ensuring enhanced scrutiny in customs declarations for goods of Indonesian origin. Increased oversight by customs authorities should be expected.

Next Steps

The regulation entered into force immediately following its publication in the Official Journal of the EU. Operators are advised to consult the official text (link to the regulation) and update their procedures accordingly. Market surveillance and further adjustments may occur during future reviews.

Le maintien de ce droit compensateur garantit une concurrence loyale pour l’industrie européenne du biodiesel. (The maintenance of this countervailing duty guarantees fair competition for the European biodiesel industry.)