Move may hit India’s exports to US.
The US Department of Commerce (DoC) has formally announced to postpone by 120 days the announcement of preliminary and final results of the third administrative review of the anti-dumping duty on import of warm water shrimp from India, China, Ecuador and Thailand.
According to the latest announcement, the deadline for releasing the preliminary result has been extended to March 2, 2009. Accordingly, the final result will be issued by July 2. The original schedule announced on April 7 this year had the deadline of October 31, 2008 for the preliminary result.
The department clarified that it would unable to analyse cost allegations as well as third-country market issues in the market economy reviews, or issue supplemental questionnaires and conduct verification in the market and non-market economy reviews within the current time frame.
The department also sought more time to conduct its analysis for each company in each of these reviews.
Many in Indian industry allege that the US administration always adopts delaying tactics on various penal issues on import of seafood involving India, China, Thailand, Vietnam and Ecuador.
Earlier, Washington had sought more time to implement the WTO decision to dismantle the Customs bond against India and Thailand.
The results of the third administrative review are crucial to India as the seafood export industry is hopeful that the duty may be reduced to the de-minimum (nil duty) level.
In the second administrative review, the country average duty had been slashed to 1.69 per cent from 7.22 per cent. Since the export houses in India and the mandatory respondents selected for the third review are confident of supporting India’s case with solid proof for cost escalation and reduction in exports to the US due to anti-dumping duty, the industry expects a further reduction of the duty in the current review.
The review is for a period of one year beginning February 1, 2007. But the extension of deadlines has put the industry in a dilemma as any delay in implementation of the WTO decision and the third administrative review will hamper India’s export prospects to the US.
