Kochi: Indian shrimp exporters to US seem to have hit the jackpot twice in 2009 with the US customs and border protection department withdrawing the customs bond weeks after lowering the anti-dumping duty. The US agency has completely withdrawn the bond pursuant to the World Trade Organisation (WTO). Appellate Body reported that the application of this requirement to shrimps from Thailand and India was inconsistent with WTO obligations.
In addition to the anti-dumping duty, the US had also imposed a customs bond, which is a cash guarantee collected by US customs against any further rise in the anti-dumping duty. The bond is calculated at 100% of the duty payable on total exports in the previous year and has one-year validity, forcing exporters to take fresh bonds every year. The duty and the bond have been chiefly responsible for the decline in India's shrimp exports to the US.
In March 2009, the anti-dumping duty for Indian shrimp exports to the US was lowered to less than 0.79% from 1.69% by the US department of commerce in the preliminary report of the third annual review. Indian exporters are likely to get cash refund on the customs bond for the period of February 1, 2006 to January 31, 2007, to which this ruling is effective. In effect, India has the lowest anti-dumping duty among shrimp exporting countries targeted by the US shrimp farmers. US accounts for 7% of the volume share and 16% of the value share of total exports (according to figures provided by MPEDA for 2006-07).
US based Southern Shrimp Alliance (SSA) is the original petitioners against India and several other nations in the shrimp import issue. They alleged that that lower-priced, pond-raised shrimps from Brazil, China, Ecuador, India, Thailand, and Vietnam were hurting the US industry. The US mostly harvests shrimp from the sea. In response to their efforts, the US International Trade Commission imposed anti-dumping duties on shrimp imports from Asia and Latin America from 2004.
The effect of the anti-dumping duty was dramatic on Indian exports. Shrimp exporters to US fell to less than 75 from 228 at the time of imposition of the punitive duties. Seafood Exporters Association of India (SEAI) expects shrimp exports to US to bounce in the coming days. “With the lowering of duty and withdrawal of bond, Indian shrimp can compete better in the global market," Anwar Hashim, national president of SEAI
Source : Financial Express