US to continue dumping duty on Indian shrimps .

Kochi, May 16 In a major blow to the country's marine export sector, the US Department of Commerce has decided to continue with the anti-dumping duty levied on shrimp exports from India.

Following the expedited Sunset Review, which was mandatory after the initial decision to impose anti-dumping duty was first announced five years ago, the US Department of Commerce has found that “the revocation of the anti-dumping duty would lead to a continuation or recurrence of dumping.”

This decision will impact frozen warm water shrimp exports from Brazil, India, China and Thailand into the US.

“We were hopeful that the Sunset Review would spell the end of anti-dumping duty. But the difficult situation is likely to continue and our final hope rests with the US International Trade Commission (ITC) from which a final decision is expected, or later from the WTO. At best, ITC might call for a fresh audit in which case we hope the decision is revoked,” Mr Anwar Hashim, President of the Seafood Exporters Association of India (SEAI), said.

The decision has been a big blow for the country's aquaculture industry, trade sources said. The production of black tiger shrimp from India had been declining over the past five years, mainly due to lower export volumes.

The industry was hoping that a favourable judgement in this regard would revive the aquaculture sector. Any major revival now seems distant, they added. Part of the problem seems to have been the sort of response that was provided to the US Department of Commerce.

While no substantive response was forthcoming from Brazil, China and Thailand within the stipulated 30-days period, India alone was the exception. The US DOC determined that the Indian substantive response was not adequate since it failed to provide the volume and value of exports for certain specific time periods.

India's response

India, for its part, requested that the adequacy request be reviewed and the US DOC responded by stating that it still found the Indian response inadequate. With the expiry of the 30-day deadline, the US DOC went in for the shorter expedited sunset review instead of the full fledged review. Now the Indian exporters are hoping that the ITC will call for a fresh audit and the Indian side is given a patient hearing.

Indian shrimp exports have faced tough times ever since anti-dumping duties were imposed, five years ago. Although annual reviews have brought down the level of anti-dumping duties from the 10.17 per cent levels to 0.79 per cent levels, the industry still faces several problems. The interim order of the Fourth Administrative Review has hiked the rates to 2.22 per cent.

The non-repayment of customs bonds worth $50 million, which has been outstanding to the exporters for several years now, has been another major issue. As a direct consequence of the anti-dumping duty, Indian shrimp exports to the US has fallen by one-third from Rs 950 crore to Rs 611 crore, industry sources said.

Source : Business Line