The U.S. Department of Customs (DOC) will eliminate anti-dumping tax on two Vietnamese shrimp exporters because they showed no signs of dumping into the U.S, the Vietnam Association of Seafood Exporters and Producers (Vasep) confirmed Sep 18.
According to the Vasep, the Viet Hai Company and Grobest will enjoy the tax rate of 0 per cent, from previous 4.57 per cent, while rate on six other Vietnamese companies will remain at 25.76 per cent.
This is the result of the first administrative review announced by the DOC
According to Vasep’s Secretary General Truong Dinh Hoe, Grobest is a new volunteer defendant, while Viet Hai is listed among the compulsory defendants.
The new tax rates will be applied for the companies’ imports to the U.S. from August 2003 to January 31, 2006. Also at the same time, the U.S. DOC made an administrative review over warm water shrimps from China, Ecuador, Thailand and Brazil.
Chinese defendants have been imposed the tax rates of between 0.44-112.81 per cent, while Ecuador’s companies 0-3.69 per cent, Thai defendants bear the tax rates of 2.58-57.64 per cent, and Brazilian, 4.62-67.8 per cent.
At the end of 2004, 54 Vietnamese companies listed as the defendants in the shrimp lawsuit were imposed the anti-dumping tax rates of between 4.3 per cent and 25.76 per cent. In April 2006, DOC announced it will review the tax rates initially imposed on Vietnam’s shrimps and the products from five other countries.
All Vietnamese defendants registered for the first review. In mid June 2006, 19 enterprises reached an agreement with the Southern Shrimp Alliance, under which the plaintiff withdrew the proposal for the administration review on these enterprises’ products, while the enterprises agreed to pay a big sum of money.
30 enterprises on the list of DOC for the administration review have been announced by VASEP as “missing”.
In July 2006, DOC announced the change of compulsory defendants from Amanda Foods, Phuong Nam and Fimex to Kigimex, Fish One and Seaprodex Hanoi. The three new compulsory defendants are bearing the tax rates of 4.57 per cent to 25.76 per cent.
The shrimp lawsuits are now drawing special attention from the public. India and Thailand are initiating legal proceedings against the U.S. with the WTO, while Ecuador has won a similar case.
Last year, the WTO said that the ‘zeroing’ method applied by the U.S. to calculate anti-dumping tax levels was illegal. Mr Hoe from VASEP said that the post-review tax rate of 0 per cent on two Vietnamese companies’ products showed that Vietnam did not dump shrimp in the U.S.
Analysts say that the anti-dumping tax rates will be questioned by more countries based on the WTO’s principles, which is what was seen in the lawsuit raised by Ecuador against the U.S.
Shrimp is a Vietnam’s key seafood export, accounting for 44 per cent of the country’s US$3.6 billion in total export revenue last year.
The U.S. previously was the biggest importer of Vietnamese shrimp. But it lost the position by Japan and the EU.
Vietnam no longer imposes obligatory inspections on seafood exports to the U.S. after analyses earlier this year proved that Vietnamese seafood was in line with international safety norms.
Accordingly, basa and tra catfish, shrimp and crab will now be exempted from inspections.
The Ministry of Fisheries’ National Fisheries Quality and Veterinary Directorate (Nafiqaved) will only perform antibiotic tests on seafood if required to do so by interested parties or to meet bilateral trade agreements. (Vietnamnet, Vietnam Economic Times)
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