The US Department of Commerce (DoC) has just announced the preliminary results of the 12th administrative review (POR 12) of the anti-dumping order on frozen warm water shrimp from Vietnam.
|VASEP requested DoC to re-calculate the anti-dumping tax on Vietnamese shrimp |
DoC has put the preliminary rate at 25.39 per cent, which was calculated for Sao Ta Seafoods JSC (FIMEX), much higher than the previously estimated rate of below 2 per cent. FIMEX was the only mandatory respondent in the proceedings, and its rate was deemed appropriate for all other Vietnamese companies that export shrimp to the US.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP) and Vietnam’s shrimp exporter community, there was considerable confusion in the calculation of this amplitude. During the earlier administrative review of anti-dumping lawsuits in the US, no enterprise has ever received double-digit rates. Particularly, FIMEX was examined in POR9 and received a rate of zero per cent.
FIMEX said DoC’s analysis showed that it applied an incorrect conversion factor from headless to head-on shrimp. If the conversion had been applied correctly, the margin would only be 1.19 per cent instead of 25.39 per cent.
|VASEP has requested DoC to quickly review the preliminary results to adjust it reasonably and in a timely manner to be fair with FIMEX and Vietnamese shrimp exporters. |
According to VASEP, although the preliminary results have not yet been applied and may change in the final round, they may have a significant impact on importers’ psychology in the US as well as on the shrimp export activities of Vietnamese enterprises, affecting trading transactions between the two parties, especially while waiting for DoC’s final results.
Based on the above factors, VASEP has requested DoC to quickly review the preliminary results to adjust it reasonably and in a timely manner to be fair with FIMEX and Vietnamese shrimp exporters.
Vietnam’s shrimp exports increased sharply with higher export prices, but exports to the US decreased by 7 per cent to $659 million, according to VASEP’s report in 2017. The primary reason for this decline is the impact of the anti-dumping tax. The US currently ranks fourth among Vietnam's shrimp export markets, instead of the leading position that it took in previous years.