September 14, 2010
Anti-dumping tariffs on Vietnam's pangasius soar
The US Department of Commerce (DOC) has made an initial decision on charging anti-dumping tariffs on imported Vietnamese pangasius from August 1, 2008 to July 31, 2009, said the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnamese firms have to pay a high tax rate of US$4.22 per kg, a 100-120% jump from last year, even though the fish sells for a lot less than the tax in the American market. It is anticipated that, as a result, pangasius companies will suffer heavy losses as well as face additional barriers in the US market.
VASEP Vice President Nguyen Huu Dung argued that the anti-dumping tariff is unreasonable because the DOC chose to compare the Philippines, a country that hosts only a few fish breeding areas, with Vietnam.
Moreover, aquaculture in the Mekong Delta region of Vietnam has grown tremendously due to massive investment in breeding and processing techniques plus low input costs.
VASEP has decided to deal with the problem by starting to get in touch with relevant agencies and companies to ask the DOC to go back and reassess its anti-dumping taxes on pangasius imported from Vietnam.
As per the regulations, the DOC makes a decision each year on whether to increase or cut anti-dumping taxes for Vietnamese firms. In the past, the department had applied low anti-dumping tariffs of between 0 and 0.52% on tra fish originating from Vietnam, a practice that helped ease the flow of tra fish into the US market.
Meanwhile, the DOC last March communicated that the average anti-dumping tariff on shrimp products imported from 29 Vietnamese companies would fall from 4.57 to 2.89%. The preliminary decision was made at the department's fourth administrative review from February 1, 2008 to January 31, 2009.
The US imports 16.9% of Vietnam seafood.