May 24, 2006

US threatens penal duties if replies for shrimp duty review not submitted

As the US Department of Commerce (DoC) has received responses from less than half of the shrimp exporters in queries for the review of the anti-dumping duty on Indian shrimps, it has been forced to extend the date for filing the applications.

The DoC had sent out questionnaires to 347 Indian exporters. Exporters were required to provide information on production, quantity and sales value in dollars during the review period in the questionnaires.

However, only about a third of these have exported shrimps during the period of review from Apr 2004 to Jan 2006.

With only around 150 exporters having filled the questionnaire, the DoC has extended the deadline to Jun 5.

The DoC has warned that if it did not get the queries by that date, those exporters would have to pay a penal duty of 80-110 percent for shrimp exports to the US.

The DoC also rejected India's objection that many of those who were sent the questionnaires do not export to the US and some have already exited the industry. There were also those who have chosen to exit the US market to avoid the burdensome duties.

Exporters said they were fully aware that refusal to respond would likely result in a penal duty but have chosen not to respond.