August 7, 2008
The US will repay India's shrimp exporters about Rs 500 crore that were paid as cash bonds during the past three years after the WTO ruled that the practise is against international trading laws.
The US imposed an anti-dumping duty on shrimp imports in 2004, perceiving that the lower-priced Indian shrimps could hurt sales of domestically farmed shrimps. It then required shrimp exporters to buy cash bonds as a guarantee against dumping.
The bonds were calculated at 100 percent of the duty on total exports in the previous year and had to be purchased once a year. About 70 companies exported shrimps worth Rs 2,300 crore to the US in the past three years.
The case was eventually brought to the WTO, which ruled in favour of India on February 29. The US appealed against it in April but the WTO maintained its ruling.
Meanwhile, a recent duty cut on shrimp shipments to 1.69 percent from 10.54 percent will also help Indian shrimp exports, according to Elias Sait, secretary general of the Seafood Exporters Association of India.