US increases tariff on shrimp imports

The US department of commerce (DoC) on Wednesday said the anti-dumping duty on shrimp imported from India was being increased from 0.79 per cent to 2.67 per cent. This was a blow to the export industry, as it was expecting a reduction in duty.

Export industry sources told Business Standard this was due to the failure of Indian seafood export industry to present its case before US officials with sufficient data.

Last month, DoC announced a five-year review of the anti-dumping duty imposed on shrimp imported from India, Brazil, China, Thailand and Vietnam. It will examine details of export of marine products to the US for the five years beginning from 2004-05. The review is still to conclude.

The US administration had imposed anti-dumping duty on shrimp imported from India and other East Asian countries in August, 2004, following a complaint from the Southern Shrimp Alliance, a local organisation of producers. Later, they had also imposed a heavy customs bond on shrimp imported from India. The bond requirement was later withdrawn on an order from the Appellate Authority of the World trade Organisation in August 2008.

According to the Marine Products Export Development Authority (MPEDA), shrimp exports to the US had dropped to $227 million, down by 10.2 per cent in 2008-09, compared to 2007-08.