March 10, 2006

 

Vietnam's request for review of US tariffs may make it even higher

 

 

Vietnam's request for a review of anti-dumping tariffs imposed on Vietnamese shrimp by the US Department of Commerce (DoC) may result in higher tariffs instead of lower ones, according to a fisheries industry official.

 

Already, the US Southern Shrimp Alliance (SSA) is asking the DoC to review the anti-dumping tariffs on Vietnamese shrimp, saying the current rates were too low.

 

As the review process will last over a year, importers in the US are more likely to reduce business with Vietnamese exporters during this period so as to reduce their exposure to an unfavourable outcome, said Luc.

 

The US market currently consumes up to 50 per cent of Vietnamese shrimp exports, Luc said, and the current situation seem to point to a reduction in export value after the results of the review is announced.

 

VASEP deputy general secretary Truong Dinh Hoe said Vietnamese shrimp exports to the US may appear unaffected for the time being, but echo Luc's view that the incident will have a negative impact for both shrimp exporters and producers in the near future.

 

Tran Thien Hai, chairman of the Vietnam Shrimp Committee (VNSC), said most domestic shrimp businesses were worried that anti-dumping duties imposed on their products would be higher if the DoC's review was not administered transparently.

 

Under a US Commerce Department decision issued in 2004, Vietnamese shrimp exporters are taxed between 4.13 per cent and 25.76 per cent. Those with the highest tariffs have since been forced out of the US market.

 

Luc said one advantage was that this would not be the first time Vietnamese shrimp exporters are facing this situation since the US shrimp industry filed petitions against them 2 years ago. However, he noted that domestic exporters still needed to co-ordinate their activities and devise strategies.

 

All 54 Vietnamese companies imposed with tariffs registered for the DoC review by the Feb 28 deadline.

 

The plan calls for a review of the export prices of shrimp at the selected companies over a certain period, after which DoC will impose new tariffs and apply them across the board.

 

The review process will cost each company at least US$75,000. After being chosen, a company will have 90 days to decide whether to continue with the process or exit the US market.