Large fish exporters to US may get breather

Additional security bonds may be exempted.

The US has indicated that it is willing to be flexible regarding imposition of additional security bonds on Indian exporters of marine products like shrimps by exempting larger exporters from the provision.

This was conveyed during bilateral consultations held in Geneva last week following a notice served by New Delhi to approach the World Trade Organisation's dispute settlement body against the US for imposing an additional security bond on Indian exporters of marine products.

Under the provision, Indian exporters have to make full cash deposits for anti-dumping duty and also execute security bonds covering one year's estimated anti-dumping duty liability from here.

Commerce ministry officials said that it would hold consultations with stakeholders in the next two weeks to discuss the US proposal.

'The contention of the US is that it will exempt the larger exporters from the requirement of the bond but we have pointed out that the smaller exporters need the exemption more since very often they are not in a position to pay the bond,' a senior commerce ministry official said. Officials said India's formal response would be conveyed after the consultation with the stakeholders.

Indian exporters had filed an appeal before the US Court of International Trade, New York against a bond requirement imposed by US as it in effect doubles anti-dumping duty.

The US department of commerce had imposed anti-dumping duty on shrimps from India at the rate of 10.17 per cent in August 2004.

India called for a review of the duty following the Tsunami. A team of experts from the US visited India to access the situation but the US department confirmed anti-dumping duty at the rate of 10.17 per cent in November 2005.

The imposition of anti-dumping duty had affected Indian exports to the US.

India's total marine products export during the last fiscal was worth $1.5 billion (around Rs 7,000 crore) of which shrimp comprised around 70 per cent.