March 12, 2008

US cuts anti-dumping duty to 1.1 percent for India shrimp exports
 

The US has cut down anti-dumping duty on Indian shrimps from 7.2 percent to 1.1 percent, and the news is set to relief Indian shrimp exporters.

The well-received news has come a long way, and World Trade Organisation's ruling that the US cash bonds policy is against international trade laws further lifts India's shrimp industry, as exporters expect the ruling will exempt them from the cash bond.

The US Commerce Department has released a questionnaire to registered companies as part of a yearlong tax review process, and only companies that have responded to it will be eligible for the new duty tariff.

However, only 71 Indian companies have responded so far, and the other 127 companies that have failed to respond will be charged with a staggering rate of 110.9 percent, more than 100 times of the new rate.

Bills of companies that have stopped exportations to the US will be settled at 10.7 percent.

More than 300 Indian shrimp exporting firms had registered with the US Commerce Department, but over 100 of them have shifted away from the US market due to low or negative margins.

The high anti-dumping duty, cash bond policy, appreciating rupee and the growing popularity of the much cheaper vannamei shrimp, have contributed to the sharp decline of Indian shrimp exports to the US.