September 10, 2007

 

US cuts Indian shrimp import duty  

 

In what was seen by Indian seafood exporters as a first step toward gradual tax withdrawal, the US Department of Commerce has lowered the anti-dumping duty on Indian shrimp by 3.32 percent, bringing the weighted average duty to 7.22 percent. 

 

The anti-dumping duty has drawn the ire of Indian seafood exporters, with many viewing it as a form of unfair trade barrier.

 

Shrimp exporters would now get a significant duty refund as the new tax rate would be backdated for the period between August 2004 and January 2006. 

 

The US department had in March fixed the anti-dumping duty at 10.54 percent after completing the first administrative review. The department is now reviewing the anti-dumping duty for the period after January 2006. Shrimp exporters believe that the second administrative review would lead to the withdrawal of the duty. 

 

Top exporters such as Falcon Marine, Hundustan Lever and the Liberty Group would be paying reduced duties ranging from 4.03 percent to 18.8 percent.

 

Forty-six other companies will have to pay an average 7.22 percent duty.

 

Around 20 other Indian companies had settled the issue out of court with the plaintiff, the Southern Shrimp Alliance (SSA), and would pay the 10.17 percent duty. 

 

The companies that which did not respond to the US government's duty review mechanism would however have to pay a duty of 82.30 percent. 

 

The US had earlier imposed anti-dumping duty on shrimp imports from Asian shrimp producers India, China, Vietnam and Thailand in response to charges of dumping by the SSA. Anti-dumping duties from the sale of Asian shrimp in the US were paid to the SSA to reimburse it for alleged damages. 

 

However, the US government has softened its stand since then, due to rulings against the US at the World Trade Organisation (WTO).