February 21, 2006

US may review anti-dumping shrimp tax

The US Department of Commerce (DOC) may review anti-dumping tax rates imposed on shrimp imported from six countries, including Vietnam, if shrimp exporters submit petitions before Feb 28.

Tran Thien Hai, Chairman of Vietnam Shrimp Committee under Vietnam Association of Seafood Exporters and Producers, said that Vietnamese exporters are likely to submit petitions; however, they will have to ready themselves for lengthy and complicated legal procedures.

Companies submitting petitions will be declared just before the February 28 deadline.

Vietnamese exporters have been incurring DOC's anti-dumping rates since last year. Taxes varied by company, some had to pay 4 percent while others as high as 25 percent.

Legal costs are expected to cost at least US$75,000. Selected companies will have 90 days to decide whether to follow the review process or to back out. After Mar 8, DOC will announce a list of companies from China, Thailand, India, Brazil, Ecuador and Vietnam involved in the review process.

At least 25 of major Indian shrimp exporters would submit petitions for the administration review.

Lawyers with experience in the shrimp anti-dumping lawsuits said that in general, tax rates would be eased but the DOC has the right to reject the petition if their caseload is too heavy.

Although common tax rates for these countries may also be reduced, it might take up to a year for the DOC to come to a decision.