July 6, 2006

Shrimp exporters offer cut to escape US dumping review

10 Indian shrimp exporters to the US have opted to settle with the Southern Shrimp Alliance instead of going to court to face a review of its shrimp duties. 

This development meant that of the 21 companies which had sought voluntary review of the shrimp duty, almost half have now gone in for the settlement.

By offering a cut of their export sales to the alliance, who claimed that foreign shrimp imports had injured them, these exporters would be able to continue trade at the present average of 10.17 percent duty. The companies' million dollar bond would also be released.

Following Devi Seafoods, which accounts for 8.14 percent of the shrimp exported to the US during the period of review,

The USDoC is expected to announce the list of three or four respondent companies next week.

The USDoC would go by the size of volume exported from the companies and based on the review fix the new duty. As some of the companies that had sought duty review voluntarily had now gone in for a settlement, it is unclear whether they would still be in the respondent list. 

When Devi Seafoods, a major shrimp exporter which had now settled, was named the mandatory respondent company, the other companies, fearing a higher duty, had gone for settlement.

Devi Seafoods' duties, at 4.94 percent was the lowest. Exporters had claimed earlier that there was pressure on them to settle by the SSA.

A US law that allocated the proceeds from the duties to injured claimants such as SSA would expire next year, thus prompting allegations that SSA is trying to cash in on the law before its expiry.