Indonesia's Fatty Acids Face Urgent US Duty Crackdown
Published Date: 8/5/2026
Notice
Summary
The U.S. Department of Commerce (Commerce) determines that critical circumstances exist, in part, with respect to imports of certain fatty acids (fatty acids) from Indonesia. The period of investigation is January 1, 2025, through December 31, 2025.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Suspension of Liquidation and Cash Deposits
Commerce intends to direct U.S. Customs and Border Protection to suspend liquidation and require a cash deposit equal to the estimated preliminary subsidy rates for unliquidated entries of certain fatty acids from Indonesia that were entered, or withdrawn from warehouse for consumption, on or after April 24, 2026. This suspension applies to entries linked to PT Wilmar Nabati Indonesia and to "all-other" exporters and producers as described in the notice, and will remain in effect until further notice.
Export-Contingent Programs Found Inconsistent
In the Preliminary Determination, Commerce found certain Indonesian programs to be export-contingent and therefore inconsistent with the WTO Subsidies and Countervailing Measures (SCM) Agreement. The programs identified include: Exemption from Import Income Tax Withholding for Companies in Bonded Zones, and Import Duty Exemption on Imported Capital Goods, Machinery, and Equipment in Bonded Zones.
PT Musim Mas Not Subject to Critical Circumstances
Commerce preliminarily found that critical circumstances do not exist for PT Musim Mas, meaning Commerce did not find the necessary increase in import volumes for PT Musim Mas over a relatively short period. As a result, PT Musim Mas's shipments were not included in the preliminary suspension of liquidation decision described for other producers.
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