WTO to set up panel to review US duty on shrimp imports

The World Trade Organization (WTO) has decided to establish a panel to review the anti-dumping duty imposed by the US on frozen shrimp imports from Vietnam . The decision was made after Vietnam’s repeated requests for setting up a panel at a session of the WTO’s Dispute Settlement Body (DSB) in Geneva.

The decision is relevant for India also as the Sunset review of the duty imposed against India is now pending with the US International Trade Commission (ITC). The results of the review are expected by March 2011, and if this is not in favour of India, it can also approach WTO.

In September 2008, WTO had scrapped the Customs bond imposed against the import of Indian shrimp to the US. In April last year, the US Customs and Border Protection had withdrawn the bond requirement completely.

The US DoC had imposed anti-dumping duty on shrimp imports from India, China, Taiwan and Vietnam in 2005.

The Sunset review conducted by US DoC, parallel to ITC proceedings, had decided to continue with the duty and fixed the base rate at 10.17 per cent. This was against the expectation of the export industry here and now the industry captains are looking forward to ITC decision.

Anwar Hashim, president, Seafood Exporters Association of India (SEAI) said the industry had expected a drop in the duty effectively to de-minimis (below 0.50 per cent), but now they are hoping for a fair decision from the ITC.

Meanwhile, SEAI sources clarified that the purpose of Sunset review is to determine whether anti-dumping duty might be revoked. It does not determine the deposit or the assessable rates of the duty. The assessable rates are determined in an Administrative review only. So the 10.17 per cent duty is not applicable for exports to the US.