June 6, 2013

This means that Indonesian exporters will not have to pay provisional countervailing duties that will be in force until the end of the investigative period.

"The finding is in line with our earlier belief. Now it's been verified by the objective data we have presented," Deputy Trade Minister Bayu Krisnamurthi said.

He said that Indonesian officials together with industry players would continue to collaborate with the US trade authority for the rest of the investigation.

The DOC, in contrast, will impose countervailing duties of up to almost 63% on frozen shrimp from other exporters: China, India, Malaysia, Thailand and Vietnam - which supply the US with some 258,000 tonnes worth US$2.3 billion.

Frozen warm water shrimp exporters from China, India, Malaysia, Thailand and Vietnam had received government subsidies of 5.76%, 5.72% to 6.10%, 10.80% to 62.74%, 2.09%, and 5.08% to 7.05%, respectively, the DOC found.

Depending on whether the US International Trade Commission (USITC) finds that imports from those countries are materially injuring, or threaten material injury, to the US industry, the USITC will issue countervailing orders on October 3.

Meanwhile, according to Slamet Soebjakto, Director General of Indonesia's Ministry of Marine Affairs and Fisheries, domestic production will increase 30% this year based on the revival of high-intensity ponds in several provinces.

Thomas Darmawan, Indonesian Fisheries Product Processing and Marketing Association chairman, said the Indonesian industry welcomed the preliminary findings.

Indonesia's shrimp exports to the US make up 48.2% of the former's total shrimp exports. In January-October 2012, shrimp exports reached US$484 million, up 4.8% on-year, or 47.3% of overall exports. The DOC's final ruling will be released on August 12 and the USITC will announce the final results on September 26.