India asks US to return shrimp money.

India has asked the US to return shrimp exporters’ money locked up in the Customs bonds. The US had imposed anti-dumping duty of 10.17 per cent on Indian shrimps in 2005 and also asked local importers to provide enhanced Customs bonds worth the duty for the past 12 months imports.

Following a successful complaint by India at the World Trade Organisation, the US stopped asking for them, but did not release the funds locked up over 2005 to 2008.

“As much as $30 million of out shrimp exporters’ money has been blocked because of non-release of old bonds which is grossly unfair,” according to a commerce ministry official.

The Customs bonds are essentially a cash guarantee to ensure that the importer will pay all Customs duties and levies charged by the authority. In its complaint at the WTO in 2008, India had argued that the requirement of enhanced Customs bonds was not consistent with the rules. The following year, the WTO ruled in favour of India and directed the US Customs and Border Protection (CBP) to do away with the enhanced bond requirement. Anti-dumping duty too came down to below 1 per cent before going up marginally to a little over 2 per cent earlier this year.

“We have discussed the issue during President Obama’s visit, and we have received assurance that the government would look into the issue,” the official said.


Source : fnbnews.com