 "US reduces duty on shrimp to India to 5.8%")
The US department of commerce (DOC) reduced the countervailing duty (CVD) rate on import of shrimp from India marginally by 0.06 percentage points to 5.85 per cent. The department had fixed CVD at 5.91 per cent in the preliminary duty determination in May. DOC announced the final rates on Tuesday.
In the preliminary rulings, the department raised the duty for Ecuador to 11.68 per cent from de-minimis (zero duty). It granted Thailand and Indonesia, the No. 1 and No. 3 suppliers of shrimp to the US, de-minimis duty.
In the final determination, China will get 18.61 per cent, Malaysia attracts 54.5 per cent and Vietnam 4.52 per cent. China suffers a huge setback as its preliminary duty was only 5.76 per cent. Thailand has a sigh of relief as it had 2.09 per cent duty in the preliminary determination. For Vietnam, it was 6.07 per cent in May. Malaysia's duty has now been reduced from 62.74 per cent. Malaysian shrimp export sector will be the heaviest casualty in the final determination at 54.5 per cent. Malaysia exported about 50 million pounds of shrimp to the US in 2012, roughly 5 per cent of the total US imports. In June, Ecuador was the second biggest shrimp exporter to the US. The latest change in duty rates is going to lead to major disruption in the shrimp market of that country.
Exports reacted cautiously to the development. Kochi-based exports said the CVD imposition will be harmful to the Indian export industry and will, therefore, weaken its position in the US market.
In the preliminary rulings, the department raised the duty for Ecuador to 11.68 per cent from de-minimis (zero duty). It granted Thailand and Indonesia, the No. 1 and No. 3 suppliers of shrimp to the US, de-minimis duty.
In the final determination, China will get 18.61 per cent, Malaysia attracts 54.5 per cent and Vietnam 4.52 per cent. China suffers a huge setback as its preliminary duty was only 5.76 per cent. Thailand has a sigh of relief as it had 2.09 per cent duty in the preliminary determination. For Vietnam, it was 6.07 per cent in May. Malaysia's duty has now been reduced from 62.74 per cent. Malaysian shrimp export sector will be the heaviest casualty in the final determination at 54.5 per cent. Malaysia exported about 50 million pounds of shrimp to the US in 2012, roughly 5 per cent of the total US imports. In June, Ecuador was the second biggest shrimp exporter to the US. The latest change in duty rates is going to lead to major disruption in the shrimp market of that country.
Exports reacted cautiously to the development. Kochi-based exports said the CVD imposition will be harmful to the Indian export industry and will, therefore, weaken its position in the US market.