UK biodiesel duties on Indonesian imports to remain for five years

The UK government has accepted the Trade Remedies Authority’s recommendation to keep duties on biodiesel imports from Indonesia in place for a further five years.

The duties range from 8% to 18% and apply to defined biodiesel products from Indonesia. The TRA said biodiesel is commonly supplied for use as road transport fuel in the UK.

The review began on 6 December 2024 and examined whether the duties were still needed and whether the product definition should change. The updated definition excludes sustainable aviation fuel, reflecting differences in production processes, raw materials, customer base and interchangeability.

The decision is relevant to trade finance because duties affect import economics, supplier choice and landed cost calculations. For fuel distributors, logistics providers and businesses exposed to biodiesel supply chains, continued duties may influence procurement planning and working capital needs.

Tariffs and trade remedies can affect cash flow in several ways. Importers may face higher upfront costs, narrower margins or more complex pricing negotiations with customers. Where businesses hold inventory or operate on longer payment cycles, the effect can feed into borrowing requirements and supplier credit arrangements.

The decision also highlights the continued process of adapting UK trade remedies after Brexit. The TRA said several EU measures of interest to UK producers were carried across into UK law after the UK left the EU, with this review among the last transition reviews to be completed.

For lenders and insurers assessing trade-exposed sectors, the ruling reinforces the importance of understanding tariff exposure not only in headline trade disputes, but also in specialised commodity and energy-linked supply chains.