US will not impose CVD against Indian frozen shrimp exports
Updated: Sep 23, 2013 01:04:14pm
New Delhi, Sept 23 (KNN) Bringing great relief to the Indian shrimp industry and its exports, the US Department of Commerce has decided not to issue countervailing duty (CVD) orders on imports of these products from India, China, Ecuador, Malaysia, and Vietnam.
“United States International Trade Commission (USITC) determined that the US industry is neither materially injured nor threatened with material injury by reason of imports of frozen warm water shrimp from India, China, Ecuador, Malaysia, and Vietnam,” Ministry of Commerce and Industry said in an official statement.
The US is the largest importer of Indian seafood in value terms as India exports its high-value items such as shrimp to the US. However, India’s seafood export was hit badly after the US imposed a 11.17 per cent antidumping duty in 2005.
In a recent development, the USITC has voted 4-2 against imposition of CVD against India and six other countries.
“As a result of the USITC's negative determinations, US Commerce will not issue countervailing duty orders on imports of these products from India, China, Ecuador, Malaysia, and Vietnam,” said the release.
Now, all the seven countries including India need not pay duties for their shrimp exports to US.
Chairman Marine Product Export Development Authority (MPEDA) said that USITC’s ruling will bring a great relief to Indian shrimp industry and shrimp exporters in India.
Due to the CVD cash deposit rate (5.85 per cent) and present level of antidumping duty (3.49 per cent), Indian Shrimp exports to USA would have been costlier than any of its closest competitors, said the Ministry.
Moreover, if countervailing duty was imposed, it would have helped Thailand and Indonesia to monopolise the US shrimp market and market access of Indian shrimp would have been affected, it added further.
Meanwhile, the Coalition of Gulf Shrimp Industries (COGSI) had filed a petition on behalf of its 28 member companies on December-28, 2012.
COGSI claims that subsidies provided by the Government of India to the Indian shrimp Industry provide an unfair advantage for Indian shrimp exports to the US, resulting in Indian exporters selling their products at lower prices.
Previously, on behalf of the Government of India, Chairman, MPEDA, Leena Nair had consultations with the US Department of Commerce (USDOC) on the subject matter and had a meeting with USITC on January-14, 2013.
Chairman, MPEDA also attended the conference /USITC hearing in connection with the investigation.
Thereafter, USDOC issued a questionnaire for the Indian Government on February-14, 2013, and selected two major shrimp exporters from India as mandatory respondents.
Based on the replies received from all relevant organizations, MPEDA filed the response of Government to the questionnaires, adding two supplementary questionnaires.
It was on May-28 2013 that the US Department of Commerce preliminarily determined that countervail able subsidies are being provided to producers and exporters of certain frozen Warm water shrimp (frozen shrimp) from India.
USDOC has preliminarily determined a cash deposit rate of 5.91 per cent for exports made from India. The preliminary determinations were favourable for exports from countries like Ecuador, Indonesia.
Further, in order to verify the records submitted by mandatory respondents, USDOC officials visited India for verification of subsidy details submitted by Government of India and mandatory respondents.
On August-13 2013, USDOC announced its affirmative final determinations in Countervailing Duty investigations of imports of certain frozen warm water shrimp from Ecuador, India, Malaysia, China, Vietnam and negative final determination for Indonesia and Thailand.
Exporters from India have been assigned a subsidy rate of 10.84 per cent. In preliminary determination, Ecuador was excluded from CVD; however in final determination higher CVD rate was assigned.
As some of the alleged schemes in India were terminated during the period of investigation, USDOC has finally determined a cash deposit rate of 5.85 per cent for exports made from India. Final results on CVD for Vietnam (4.52 per cent), China (18.16 per cent) and Malaysia (54.5 per cent), Ecuador (11.68 per cent) were also announced.
Indonesia and Thailand got de minimis (0 per cent) subsidy rate in final CVD determinations. The final determinations were favourable for exports from countries like Thailand and Indonesia and these countries escaped from countervailing duties.
Due to positive final CVD determinations, USDOC instructed US Customs and border protection to order cash deposits equal to the final subsidy rates if the USITC issues final positive injury determinations. Thailand and Indonesia was excluded from CVD in the final determination.
But the ruling by USITC, which is the last step in this investigation, came in favour of India and six other countries which negate the USDOC’s decision. (KNN/SD)
“United States International Trade Commission (USITC) determined that the US industry is neither materially injured nor threatened with material injury by reason of imports of frozen warm water shrimp from India, China, Ecuador, Malaysia, and Vietnam,” Ministry of Commerce and Industry said in an official statement.
The US is the largest importer of Indian seafood in value terms as India exports its high-value items such as shrimp to the US. However, India’s seafood export was hit badly after the US imposed a 11.17 per cent antidumping duty in 2005.
In a recent development, the USITC has voted 4-2 against imposition of CVD against India and six other countries.
“As a result of the USITC's negative determinations, US Commerce will not issue countervailing duty orders on imports of these products from India, China, Ecuador, Malaysia, and Vietnam,” said the release.
Now, all the seven countries including India need not pay duties for their shrimp exports to US.
Chairman Marine Product Export Development Authority (MPEDA) said that USITC’s ruling will bring a great relief to Indian shrimp industry and shrimp exporters in India.
Due to the CVD cash deposit rate (5.85 per cent) and present level of antidumping duty (3.49 per cent), Indian Shrimp exports to USA would have been costlier than any of its closest competitors, said the Ministry.
Moreover, if countervailing duty was imposed, it would have helped Thailand and Indonesia to monopolise the US shrimp market and market access of Indian shrimp would have been affected, it added further.
Meanwhile, the Coalition of Gulf Shrimp Industries (COGSI) had filed a petition on behalf of its 28 member companies on December-28, 2012.
COGSI claims that subsidies provided by the Government of India to the Indian shrimp Industry provide an unfair advantage for Indian shrimp exports to the US, resulting in Indian exporters selling their products at lower prices.
Previously, on behalf of the Government of India, Chairman, MPEDA, Leena Nair had consultations with the US Department of Commerce (USDOC) on the subject matter and had a meeting with USITC on January-14, 2013.
Chairman, MPEDA also attended the conference /USITC hearing in connection with the investigation.
Thereafter, USDOC issued a questionnaire for the Indian Government on February-14, 2013, and selected two major shrimp exporters from India as mandatory respondents.
Based on the replies received from all relevant organizations, MPEDA filed the response of Government to the questionnaires, adding two supplementary questionnaires.
It was on May-28 2013 that the US Department of Commerce preliminarily determined that countervail able subsidies are being provided to producers and exporters of certain frozen Warm water shrimp (frozen shrimp) from India.
USDOC has preliminarily determined a cash deposit rate of 5.91 per cent for exports made from India. The preliminary determinations were favourable for exports from countries like Ecuador, Indonesia.
Further, in order to verify the records submitted by mandatory respondents, USDOC officials visited India for verification of subsidy details submitted by Government of India and mandatory respondents.
On August-13 2013, USDOC announced its affirmative final determinations in Countervailing Duty investigations of imports of certain frozen warm water shrimp from Ecuador, India, Malaysia, China, Vietnam and negative final determination for Indonesia and Thailand.
Exporters from India have been assigned a subsidy rate of 10.84 per cent. In preliminary determination, Ecuador was excluded from CVD; however in final determination higher CVD rate was assigned.
As some of the alleged schemes in India were terminated during the period of investigation, USDOC has finally determined a cash deposit rate of 5.85 per cent for exports made from India. Final results on CVD for Vietnam (4.52 per cent), China (18.16 per cent) and Malaysia (54.5 per cent), Ecuador (11.68 per cent) were also announced.
Indonesia and Thailand got de minimis (0 per cent) subsidy rate in final CVD determinations. The final determinations were favourable for exports from countries like Thailand and Indonesia and these countries escaped from countervailing duties.
Due to positive final CVD determinations, USDOC instructed US Customs and border protection to order cash deposits equal to the final subsidy rates if the USITC issues final positive injury determinations. Thailand and Indonesia was excluded from CVD in the final determination.
But the ruling by USITC, which is the last step in this investigation, came in favour of India and six other countries which negate the USDOC’s decision. (KNN/SD)
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