Information from the Vietnam Association of Seafood Exporters and Producers (VASEP) said that on March 26, the US Department of Commerce (DOC) announced preliminary anti-subsidy taxes on Vietnamese, Indian and Ecuadorian shrimp.
Accordingly, three of the four largest US farmed shrimp suppliers will be forced to pay preliminary anti-subsidy tax (CVD) ranging from 1,69% - 196% starting this weekend. Meanwhile, Indonesia, the third largest shrimp supplier to the US, has been removed from the review list.
Previously, DOC had begun convening a list of exporters and tariff proponents that it determined (pending a full investigation) were likely to be providing subsidy programs that would allow Enterprises offer artificially low prices in the US market, violating regulations of the World Trade Organization (WTO).
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| Preliminary processing of shrimp for export. Illustration |
The anti-subsidy tax rate will take effect as soon as the DOC publishes the information in the Federal Register, which is expected to take place in the next few days.
The tax will be refunded if investigators determine that the importing countries were not guilty of providing illegal subsidies or if the subsidized imports did not harm the U.S. shrimp industry.
However, a final ruling will not be made until fall or winter 2024, meaning importers will likely be faced with the cost of tax deposits on shrimp exports for much of the period. remainder of 2024.
Specifically, immediately after the DOC's decision is officially announced, shrimp importers from India will have to deposit 4,72% for shrimp imported from Devi Sea Foods, 3,89% from Sandhya Aqua Exports. and 4,36% from all other Indian suppliers.
Shrimp importers from Ecuador will have to deposit 13,41% for shrimp imported from Industrial Pesquera Santa Priscila, 1,69% from Sociedad Nacional de Galapagos (SONGA) and 7,55% from all suppliers other from Ecuador.
For shrimp from Vietnam, the deposit requirement will be 2,84% for Stapimex, 196,41% for Thong Thuan and 2,84% for all other Vietnamese suppliers.
DOC made a preliminary decision to have no subsidies for Indonesian companies, so Indonesian shrimp will not need a deposit.
India, Ecuador, Indonesia and Vietnam are DOC's four target countries in this review, accounting for 4% of the total 90 tons of shrimp imported into the US in 788.209.
