Shrimp exported to US to face anti-dumping duty
According to Vietnam Competition Authority, under the Ministry of Industry and Trade, Vietnamese shrimp exported to the US will face a slightly higher anti-dumping duty under a recent ruling from the Department of Commerce (DOC). DOC has decided to adjust the anti-dumping duty on Vietnamese shrimp exported to the country, between February 1, 2013 and January 31, 2014, from 1.16% to 1.42%.
The decision from DOC to raise the duty from 1.16% to 1.42% comes amid a change in the way that the duty formula was calculated. Anti-dumping duties are calculated by comparisons to similarly sizes countries. Previously, US officials compared Vietnam to Bangladesh but recently decided to use India as the country of comparison instead.
This decision means that the selected importers are subjected to a higher anti-dumping duty on imported shrimp during the 12-month period beginning in February 2013.
Companies that import products from Vietnam into the US have to pay cash deposits and the dumping margins will then be taken from these deposits.
According to Trương Đình Hòe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), the duties which designed to protect US wild-caught shrimp have prompted Vietnamese producers to sell more to Japan instead of the US.
The higher anti-dumping duty will increase the price of Vietnamese shrimp in the US, weakening the product’s competitiveness and also greatly affecting the Vietnamese shrimp exports to the US.
According to the VASEP, Vietnam shrimp export generated US$1.56 billion in the first half of 2017, up nearly 16% y-o-y.