A new round of countervailing trade duties against shrimp exporters in Ecuador, India and Vietnam, according to documents filed by the US Department of Commerce will be imposed by the US government.
According to the initial investigations by the US Dept. of Commerce (DOC) the three countries engaged in selling certain forms of frozen warm water shrimp with unfair government support, according to a document filed by the DOC will be subject to the trade impositions.
The DOC set an overall countervailing duty (CVD) rate of 4.36 percent for India, 7.55 percent for Ecuador and 2.84 percent for Vietnam for shrimp falling under the scope of the order
Wild or farmed shrimp that is head-on or head-off, shell-on or peeled, tail-on or tail off, deveined or not deveined, cooked or raw, or otherwise processed in frozen form are included under these investigations according to an update in October.
Countervailing duties(CVD)are aimed at offsetting allegedly unfair foreign government subsidies by the exporting countries to products sold into the US that compete with domestic products as per US definition. On the contrary, Antidumping
duties are imposed to increase prices of products sold into the US market which are deemed to be sold at less than fair value.
According to the preliminary ruling in the US Federal Register, importers bringing in shrimp from the companies and countries that are given the rates will be required to pay duty deposits, which will be collected by US Customs and Border Protection
(CBP)
The final determination in October could see a change in the imposition of rates by the DOC The American Shrimp Processors Association (ASPA) filed petitions in October with the DOC and the US International Trade Commission (ITC), for imposing
antidumping duties on imports of frozen shrimp from Ecuador and Indonesia, and countervailing duties on such imports from Ecuador, India, Indonesia and Vietnam.
The International Trade Commission (ITC) voted in December to continue investigating frozen warm water shrimp imports from Ecuador, India, Indonesia, and Vietnam to determine whether the United States should impose antidumping an countervailing duties.
The members of ASPA, which stands for the US wild-shrimp sector, are being harmed from importing less-expensive foreign shrimp which is why the Anti-dumping duties are imposed to check dumping of foreign shrimp into the US to safeguard the US Domestic shrimp sector.
Blogger:
Dr. Sathish Prasad
Senior Scientist – Aquatic Animal Health
Growel Innovation Center,
RS NO.57, Chevuru Village, Sriharipuram Panchayat, Mudinepalli Mandal, Krishna District – Andhra Pradesh India – 521329
Email: [email protected]