Vietnamese shrimp at risk of US anti-subsidy investigation

After being imposed anti-dumping tax, shrimp - Vietnam's main seafood export to the US - is at risk of being investigated for anti-subsidy.

According to information from the Department of Trade Defense ( Ministry of Industry and Trade ), the products under investigation are frozen warm-water shrimp under HS codes 0306.17, 1605.21 and 1605.29. The countries under investigation include Ecuador, India, Indonesia and Vietnam.

Of these, Vietnam is only subject to anti-subsidy investigations, as these products have been subject to anti-dumping duties by the US since 2004. Regarding the scope of alleged subsidies, the plaintiff requested the US Department of Commerce (DOC) to initiate an anti-subsidy investigation on both frozen and fresh shrimp from Vietnam.

The reason is that fresh raw shrimp accounts for up to 95% of the value of frozen warm-water shrimp, so subsidies for fresh shrimp suppliers are also considered to be for Vietnamese frozen shrimp exporters.

The plaintiffs allege that frozen warmwater shrimp and fresh shrimp imported from Vietnam are receiving 40 subsidy programs, causing serious injury or threatening to cause serious injury to the domestic shrimp industry in the United States.

The proposed subsidy investigation period is 2022 and the injury investigation period is from 2020 to the first half of 2023. According to data from the US International Trade Commission (ITC), in 2022, Vietnam exported about 645 million USD of the accused products, accounting for about 10% of the total shrimp export market share to this market.

In order, Vietnam will consult with the US Department of Commerce on the Application for Investigation and DOC has 20 days (expected until November 14) to review and decide whether to initiate an investigation or not. In special cases, DOC can extend to 40 days.

In response to the above incident, the Trade Defense Department recommends that the Association notify product exporting enterprises to prepare response plans in case the DOC initiates an investigation.

Enterprises need to review the support programs and policies received (if any) during the investigation phase to prepare relevant documents and records in advance. At the same time, enterprises need to prepare resources, determine in advance the strategy for participating and handling the case in case the DOC initiates an investigation and continue to monitor the situation on the DOC portal.

Di Tung

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