The US Department of Commerce and the US International Trade Commission (ITC) will be initiating a sunset review of the anti-dumping duty on shrimp imports from India next month. While the US Commerce Department will examine whether dumping would continue or recur if the anti-dumping duties are revoked, the ITC in turn would examine whether injury would continue or recur to the US shrimp industry if the duties are revoked.
While no official date when the sunset review will be initiated is available, the US laws states that the sunset review should commence 30 days before the completion of five years of the final findings of the original investigation are notified and published. As the findings of the original investigation were announced on February 1, 2005, the sunset review is likely to commence during the early part of the coming month, sources in the Seafood Exporters Association of India (SEAI) said.
When the US DOC initiates the sunset review, the Indian shrimp exporting community to the US will have 30 days time to submit response to the notice. While the sunset review will determine whether anti-dumping duties should continue or be withdrawn, the Indian shrimp exporters are quite bullish given that the rate of duty has already been slashed down to 0.79 per cent in the Third Administrative Review.
They are hopeful that the rate will be further reduced or might continue at the current low levels when the results of the Fourth Administrative Review are published during early part of next year.
Meanwhile the Indian shrimp exporters to the US will have a very busy schedule ahead since they will have to participate in the Fifth Administrative Review starting during the early part of next year, as well as prepare and respond to different questionnaire from the US DOC and ITC for the sunset review.
The sunset review would examine all the salient features of Indian shrimp exports to the US during the last five years – that is from 2004 onwards. Ever since the imposition of anti-dumping duty, Indian shrimp exports to the US has shrunk rapidly both in volume and value. The US which was one of the leading seafood export destinations has lost position of dominance.
US today account for just seven per cent of the Indian seafood exports by volume and 13 per cent by foreign exchange earnings. And even this position is being further undermined as the volume of exports to the US fell by 11 per cent in volume and seven per cent in value according to the figures available for the first six months of the current fiscal. However, the Indian shrimp exporting community is optimistic that the sunset review would pave the way for duty free shrimp exports to the US and that the country would regain its position as a dominant region of Indian shrimp exports.
Source : Business Line