USA may cut duty on shrimp imports to 7%

The anti-dumping duty imposed by the USA on shrimp exports from India and other Asian countries is likely to be reduced soon.

The ongoing first administrative review of Indian exporters by the US commerce department, which will be complete by August this year, may cut the duty to 7 per cent from the current 10.17 per cent, according to leading marine exporters here.

In the first administrative review, the US commerce department has shortlisted three major domestic companies as mandatory respondents "� Hindustan Lever, Liberty group and Falcon Marine "� and the process of due diligence of their accounts is on.

Meanwhile, in a petition filed before the US commerce department, the US-based marine organisation Southern Shrimp Alliance (SSA) is lobbying for a hike in the anti-dumping duty.

The current review is for exports between February 2005 and January 2006. The US commerce department has, in the meanwhile, initiated the process for a second administrative review for exports between February 2006 and January 2007.

According to a list to be published in the US Federal Register, the domestic shrimp exporters have to file applications for the review before February 28.

Around 100 exporters have to file applications, while the US commerce department will shortlist four to five companies for the review according to their volume of exports.

There will be five such reviews spread over 5 years before the final decision on the anti-dumping duty.

The US administration had evoked a duty on exports from countries such as India, China, Taiwan and Vietnam in August 2004, following a complaint lodged by the SSA.

The SSA had alleged that Indian companies were dumping shrimp at cheaper rates and badly affecting the local aquaculture industry.

The duty had reduced Indian shrimp exports to the USA during the first half of the current financial year by 23.43 per cent in terms of quantity and 14.32 per cent in value terms. India had exported 22,329 tonne of marine products valued at Rs 768 crore during the period.