May 18, 2005

Indian shrimp exporters filed lawsuit against US Customs

The Seafood Exporters Association of India (SEAI) has filed a lawsuit against the US Customs and Border Protection Agency (CBP) before the US Court of International Trade (CIT) challenging the new bond rules on importers of Indian shrimp which already attract an anti-dumping duty. Two US importing firms, Gourmet Fusion Food Inc and International Creative Foods Inc, have also joined SEAI as plaintiffs in the suit.

Indian frozen shrimp have been subject to anti-dumping duties since February but shrimp exporters have been in close partnership with the US government to ensure compliance with the dumping law, including the payment of all anti-dumping deposits.

Still, the CPB decided to introduce new bond rules requiring vastly higher bond amounts to be posted in full by the stateside importers. Indian exporters will also be forced to register as 'importers-on-record' and deliver the product on a duty-paid basis. Companies would be running two to three bonds at the same time, something they cannot afford to do. Furthermore, bond companies are asking for 100 percent margin for issuing the bonds. 

The new changes effectively double the anti-dumping duties for Indian exporters, and many feel that these requirements are discriminatory.