May 7, 2008

US may reconsider final anti-dumping rate on TUF
 

The US may reconsider the final anti-dumping rate on Thai Union Frozen Products (TUF) Plc, which could be lower than the preliminary rate of 15.3 percent.
 

The final rate is scheduled to be announced by July and if the rate is indeed lowered, it would also bring down the rate applied to other exporters to 5.95 percent from 6.09 percent.

US undersecretary of commerce Christopher Padilla said discussions with the Thai authorities would be helpful in the calculation of the final anti-dumping rate. The rate against TUF might have an impact due to the company's size.

Although TUF president Thirapong Chansiri was disappointed with the preliminary rate that was announced back in March, he welcomes Padilla's comments.

Chansiri said the preliminary rate of 15.3 percent is too high and it happened because the company failed to submit some documents for the annual review. Chansiri added that the company's lawyer had submitted the documents but they were unnecessary for the calculation of the preliminary rate and that he considers the high rate as a punishment.

If TUF receives a 15.3 percent rate, it would pull up the average nationwide rate, which would affect the need for a continuous bond. Companies must post a bond equal to the expected value of anti-dumping duties and the money is not returned until the penalties expire, an official at the Thai Commerce Ministry said.

Exports from Vietnam and Ecuador have had their duties reduced to zero but Thailand is still facing anti-dumping duties. Despite the higher cost of Thai shrimp due to the penalties, the US bought more frozen shrimp from Thailand than any other country last year.

According to the US Department of Commerce website, the preliminary rates for Thai exporters range from 2.4 percent to 57.64 percent depending on the individual company.