Kochi, March 12 The preliminary findings of the Third Administrative Review on anti-dumping duty for Indian shrimp exports to the US have slashed the rates sharply to 0.79 per cent.
Earlier, the second review conducted by the US Department of Commerce had brought down the anti-dumping duty on Indian shrimp exports to the US to 1.69 per cent.
Combined effort
“This sharp reduction in anti-dumping duty for shrimp exports to the US by close to one percentage point is a great achievement,” sources in the Seafood Exporters Association of India (SEAI) said.
The anti-dumping, which was initally imposed at a steep level of 10.17 per cent, had posed formidable challenges to Indian shrimp exports.
Successive efforts by the Union Government, the Marine Product Export Development Authority (MPEDA) and SEAI had resulted in the first review bringing it down to 7.22 per cent, the second review to 1.69 and the preliminary findings of the third review now bringing it down to 0.79 per cent.
Though the anti-dumping and customs bond rates are expected to come down sharply when the final findings are announced in July, it would still take quite a while for the Indian industry to recover and become competitive in the US markets, the sources said.
Other countries
Indian shrimp exporters also stand to gain compared with exports from some of the competing destinations. Shrimp imports from Ecuador will attract an anti-dumping duty of 2.09 per cent, Thailand 4.51 per cent, Vietnam 25.76 per cent and China 112.81 per cent, SEAI sources pointed out.
Though 170 Indian shrimp exporting companies came up for review, the respondents were restricted to Devi Sea Foods Ltd and Falcon Marine Exports Ltd.
The preliminary review estimates that Devi Sea Foods would be attracting an anti-dumping duty of 0.39 per cent, while Falcon Marine would be at 0.79 per cent.
While Devi Sea Foods would be exempt from paying anti-dumping duty since the findings have placed its rates at sub-0.5 per cent or the de-minimum levels, Falcon Marine and all other Indian exporters would have to pay duty at 0.79 per cent, SEAI sources said.
The Indian shrimp exporters were optimistic that the final administrative review would validate the preliminary findings and reduce the anti-dumping duties to very low levels. This, they said could once again re-vitalise Indian shrimp exports.
Source : Business Line