March 7, 2011
US reduces anti-dumping duty on Indian shrimp imports
The US Department of Commerce has announced a cut in the anti-dumping duty on Indian shrimp imports to 1.6%.
The preliminary results of the Fifth Administrative Review on anti-dumping duties on Indian shrimp imports had undertaken a thorough examination of the performance of two compulsory respondents from India, Falcon Marine Exports and Apex Exports, before announcing an average 1.6% duty for all other shrimp exporters.
Meanwhile, the preliminary findings of the Fifth Administrative Review have imposed a 1.36% and 2.31% duty respectively for the two mandatory respondents. "The slashing of anti-dumping duty from 2.67% to 1.69% is welcomed and would galvanise Indian seafood exports substantially," sources in the Seafood Exporters Association of India (SEAI) said.
The lower levels of anti-dumping duties have revitalised the pace of Indian shrimp exports to the US recently. Indian seafood exports to the US that had been delayed behind its peers in the last couple of years have gathered momentum and the US is now the second biggest export destination after the EU.
Enhanced by the increasing demand and reduced import duties, Indian shrimp exports had staged a strong come back to the US markets, growing by 88% in volume and 149% value during April-December. This also allowed shrimp to hold its position of dominance in the country's marine export basket as it made up over 48% of the total export earnings.
The US became the second biggest export destination with seafood exports to the area growing close to 50% in volume and 110% in value. While the EU continued to stay as the single most important export destination, exports to the region saw a deceleration of close to 5% in quantity during the first nine months of the current fiscal.
Although the present levels of anti-dumping duties are not a serious concern to the Indian shrimp exporters, the cyclical requirement to execute bonds with the US customs before the exports can take place still remain as a concern, SEAI sources added. The cumbersome process of executing the bond and the inordinate delay in its liquidation are major problems experienced by the exporters.
Since it takes three years for the bonds to be liquidated, Indian exporters will have an outstanding of three bonds with the US customs at every given point of time. The cumulative amount tied up in bonds would be well over US$100 million at every juncture, the sources pointed out. While the bonds may not be of very severe consequence to the bigger exporters, they are consistent reason for worry and concern to the smaller players.
