The Hindu Business Line : US to review dumping duty on Indian shrimps

Move for relief?
Details of HLL, Falcon Marine & Liberty Group to be assessed. Some of the exporters no longer active; some have ceased operations. Expenditure for the review could work out to Rs 1 crore per company.

Kochi , July 12

As the first logical step in its review of the anti-dumping duty imposed on Indian shrimp exports, the US Department of Commerce has chosen top three Indian shrimp exporting companies - Falcon Marine Ltd, Hindustan Lever Ltd and Liberty Group, for reviewing their export statistics and performance - and deciding on a new anti-dumping duty structure for the country.

Industry happy

With the petitioners, the Southern Shrimp Alliance, demanding that all the registered 347 Indian shrimp exporters be included in the review process, the industry has welcomed the decision.

Mr Abraham Tharakan, President of the Seafood Exporters Association of India (SEAI), said: "The decision of the US administration should put at rest the controversy over initiating a review for all Indian shrimp exporters. Several of these exporters are no longer active and some might have even ceased to exist altogether."

Review expenses

The SEAI said the expenditure for the review itself could work out close to Rs 1 crore per company and that most Indian seafood exporters would not be able incur any such expenditure. The industry thanked the Union Ministry of Commerce as well as the Minister, Mr Kamal Nath, for their intervention and sustained support at crucial stages, in their fight against these unwarranted imposts.

A final anti-dumping duty on Indian shrimpexports to the US, ranging between 4.94 to 15.36 per cent in December 2004. However, in November 2004, the US administration enforced a new customs bond, which had to be paid upfront along with the exports. The additional burden on the individual Indian exporters ranged between $0.8 million to $5 million.

Against WTO norms

The US Customs' action effectively doubles the anti-dumping duty and is thus inconsistent with the WTO provisions. Even the implementation of the bond directive is arbitrary inasmuch as the Indian shrimp exporters appear to have received more demand notices than the other five shrimp exporting countries, which have also been subject to anti-dumping duty, sources in the SEAI said.

However, they are more optimistic with the decision to restrict the fresh review process to the top three Indian companies. Having complied with the first bond stipulation, the Indian exporters are now readying to pay up the second bond for sustaining their shrimp exports. But the current review process will help in liquidating the first bond back to the exporters, sources in SEAI said.

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