Indian shrimp exporters to US have a sigh of relief for the second time in just three weeks as the US Court of International Trade [ CIT] has issued a preliminary ruling that the additional bonding requirements imposed by US Customs and Border Protection [CBP] on shrimp imports are contrary to law. | |
| CIT has ruled a temporary injunction over the decisions of CBP in this regard. |
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| In last week of November the dispute settlement body of World Trade Organisation [WTO] had constituted a panel to examine the impact of anti-dumping duty and customs bond imposed on shrimp imported from countries like India, Thailand, China, Ecuador, Vietnam and Brazil, upholding requests of India and other nations. |
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| Marine products export to the US had seriously hit by the imposition of 10.17 per cent anti-dumping duty and customs bond as there had been a drop by 23.43 percent in the exports to the US during April - September period of current fiscal. |
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| Value realisation in rupee terms had plummeted by 14.32 per cent, from Rs 896.17 crore in the same period in last fiscal to Rs 768 crore. |
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| The recent ruling was in response to a suit filed by the US National Fisheries Institute [NFI] challenging CBP's requirement that companies importing shrimp should obtain a continuous entry bond in the amount of their anti-dumping duty in addition to posting the cash deposits themselves. |
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| This had caused an effective requirement of double the amount of security required under anti-dumping law. NFI argued that shrimp importers were uniquely and unfairly singled out for this additional bonding requirement. |
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| In August 2004, CBP implemented a policy that required importers of agriculture or aquaculture products were subjected to duties to post bonds equal to the value of shipments imported during the previous 12 months. |
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| In December, 2005 NFI had filed a suit and pleaded for an injunction against CBP's actions. CIT has now ruled a preliminary injunction and NFI will soon move to the second phase of the suit. A final decision from the CIT is expected some time in 2007. |
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| A.J. Tharakan, president, Seafood Exporters Association of India [SEAI] told Business Standard that the preliminary ruling would impart a much easier exports to the US since bond would not be required as per the order. |
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| He a said SEAI had also filed a suit with the CIT which is yet to be considered. " We feel that the present ruling may positively influence our case", he added. |
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