January 28, 2005

US lessens tariff on Thai prawns

THE US government on Wednesday revised down its anti-dumping import tariff on shipments of frozen Thai shrimp products to 5.95 percent, a move which would substantially help strengthen Thailand's competitiveness in the US prawn market.

According to an informed source at the department, the US Commerce Department had earlier imposed the Ad tax on frozen prawn products from China, Vietnam, India, Brazil, Ecuador and Thailand after reports showing dumping activities of shrimp exports into US markets. However, after it was found that the imposed Ad tax had been calculated incorrectly, efforts were made to revise it.

Under the revised Ad tax of the US government, Thailand and Brazil receive lower Ad tax rates, while the rates on Ecuador and India were increased and those of China and Vietnam remain unchanged, the source said.

The source added that the average US Ad tax rate imposed on Thailand's prawn products was lowered to 5.95 percent from the previous 6.03 percent, and for Brazil a decreased to 7.05 percent from 10.40 percent. Rates for Ecuador increased to 3.58 percent from 3.26 percent, while that of India was raised to 10.17 percent from 9.45 percent.

The Ad tax imposed on Chinese and Vietnam's frozen prawn remained at 112.81 percent and 25.76 percent respectively, the source added.

Among the six countries that are subject to the US Ad tax, Thailand is the largest exporter of frozen prawns to the US. Thailand's total export value of frozen prawn to the US stood at US$1.25 billion in 2001. This export value declined to US$956.4 million in 2002 and increased slightly to $956.8 million in 2003.

Rachane Potjanasuntorn, the director general of the foreign trade department, said the US Commerce Department has come up with the Ad tax revision because of a technical error. But it will help boost Thailand's competitiveness in the US market, he added.

He noted that the US revision of the frozen prawn Ad tax has nothing to do with its plan to revise the import tax on shrimp exporters in countries that were affected by last month's tidal wave disaster. A team will be sent later this month to evaluate the damage caused by the recent tsunami in the affected countries, after which, considerations on whether or not to revise current Ad tax rates will be made.