Trade war: US hikes anti-dumping duty on Indian shrimps by 60 per cent
Amidst uncertainty in global trade, United States of America has enhanced the final anti-dumping duty on Indian shrimps to 1.35 per cent, a hike of more than 60 per cent.
The US Department of Commerce (DoC) has determined that certain frozen warm water shrimps from India is being sold in the United States at less than normal value during the period of review (POR), February 1, 2016 to January 31, 2017. This review covered 231 producers and/or exporters.
Previously, the levy was 0.84 per cent duty.
The department individually reviewed the sales of two Indian shrimp producer and exporters, Devi Fisheries Limited and the Liberty Group for that time period.
Based on investigation, the department concluded that the Liberty Group had not dumped shrimp into the U.S. market during that timeframe, but Devi Fisheries Limited had a weighted-average dumping margin of 1.35 per cent.
The 1.35 per cent dumping margin is also applied to all other Indian producers and exporters that were subject to the review.
The surge in duty on Indian shrimps has come at a time when seafood sector in India is already grappling with the low cost pricing.
“ Liberty Group will no longer be subject to a cash deposit requirement, but further imports from all other Indian producers and exporters subject to the twelfth administrative review will have an increased cash deposit obligation of 1.35 per cent”, Southern Shrimp Alliance (SSA), a US based organization of shrimp fishermen and shrimp processors said in a statement.
An exporter, requesting anonymity, said the export to United States is likely to get hurt with the increase of the duty.
“The enhanced rate is a nominal increase. ADD must be withdrawn on Indian exporters as the duty is being imposed for more than 10 years”, said Rajen Padhi, Director General of Utkal Chamber of Commerce and Industry and a seafood consultant.
Source: Business Standard