June 15, 2006

19 Vietnamese shrimp exporters removed from US duty review

The US Southern Shrimp Alliance (SSA) has agreed to remove the names of 19 Vietnamese shrimp exporters from the list of companies subject to a tax administration review after negotiations were held between the Vietnamese enterprises and SSA.

The 19 enterprises would retain the same anti-dumping tax rates as currently applied until the next administration review, according to Tran Thien Hai, a representative of the Vietnam Association of Seafood Exporters and Producers (VASEP).

The Vietnamese enterprises also had to sign a memorandum of understanding (MOU), in which they agreed to provide shrimps with no prohibited anti-biotic substances and join in the battle against trade fraud.

In addition, Vietnamese enterprises also had to pay SSA a sum of money equivalent to 2 percent of the total turnover of the products exported to the US during the administration review period, from Jul 2004 to Jan 2006.

The SSA had sent a petition to DOC in February, requesting a review of the anti-dumping tax rates on imported shrimp from six countries as it felt current rates were too low.

A total of 54 Vietnamese enterprises were on the list, with tax rates ranging from 4.3 percent to 26 percent.

Some have since ceased exports to the US, presumably due to the high tax rates.