China accepts anti-dumping petition against U.S. distiller’s grain exports

(Reuters) -China has formally accepted a petition from Chinese producers of distiller’s dried grains (DDGS) seeking anti-dumping duties on imports of the feed ingredient from the United States, according to a report by U.S. agricultural attaches in Beijing.

The producers are also seeking countervailing duties, also known as anti-subsidy duties, on the DDGS imports, said the report. The U.S. embassy received notification of Beijing’s acceptance of the petition on Dec. 15, it said.

Under Chinese law, the commerce ministry must make a decision on whether to initiate an investigation within 60 days of accepting a complaint, but often makes decisions faster than that, the report said.

China is the world’s top buyer of DDGS, a protein-rich by-product of corn ethanol that is used as a substitute for corn and soymeal in animal feed. China relies on imports for almost all of its DDGS needs, with most of the shipments coming from the United States, the world’s top exporter.

Chinese imports of DDGS in the first ten months of 2015 came to 5.9 million tonnes, up 14.3 percent from the same period a year ago, as feed mills sought alternatives to expensive domestic corn.

Buyers have slowed their purchasing of imported DDGS recently, however, expecting Beijing to launch an anti-dumping investigation.

China previously launched an anti-dumping investigation into DDGS imports from the United States in late 2010, later extending the probe before dropping it in mid-2012.

The earlier investigation slowed China’s imports of the feed ingredient, but did not stop them entirely.

Chinese commerce ministry officials were not immediately available for comment, but the ministry has previously declined to respond to questions on the issue.