QVD and its U.S.-based entity, QVD USA, were paying an antidumping duty rate of 14.59 percent for frozen pangasius fillet shipments made between Aug. 1, 2005 and July 31, 2006, based on the DOC’s preliminary ruling in the third administrative review of antidumping duties. The zero percent rate will take effect for all new imports, the company said.
In that same preliminary review, the DOC had determined ESS was not selling at belowmarket rates, and upheld that determination in its final results.
According to an announcement Monday in The Federal Register, the two companies had their rates for the third review period cut to zero, while the countrywide rate for other Vietnamese pangasius producers remains at 63.88 percent. The companies were notified last week of the decision.
“Great! We’re obviously thrilled,” Laurie Bugbee of QVD USA told IntraFish on Monday. “It gives us a chance to reinvest in the growth of our company.” QVD hopes the removal of the antidumping duty will boost sales, which Bugbee says were growing despite the extra costs associated with the duty. “We hope so we hope that its what will happen,” she said. “Our orders have been increasing in spite of it. The marketplace is beginning to welcome this fish quite a bit. We’re thrilled about it.”
The decision to rescind the antidumping duty came after extensive reviews of QVD's operations at its U.S. headquarters in Bellevue, Wash., and the parent company's facilities in Vietnam, Bugbee said, a process that took a year to complete. "They look at where we're producing, our farming, they look at every aspect of the company, making sure we're doing what we say we're doing," she said.
In the final review, the department upheld its to rescind its review for nine companies:
FAQUIMEX; Hung Vuong Co., Ltd.; NAVICO; Phu Thuan Co.; DOCIFISH; Thuan Hung; United Seafood Packers Co. Ltd.; Van Duc Foods Export Joint Stock Co.; and Vietnam Fish-One.
With regard to Lian Heng Trading Co. Ltd., the department said entries that are not accompanied by a country-of-origin certification stating the product is not produced from Vietnamese-origin fish are subject to the Vietnam-wide rate of 63.88 percent, while those with certification will receive a zero percent rate.
QVD will continue to participate in DOC reviews, and is taking part in the fourth administrative review under way, said Bugbee. "We are working to keep our zero rate," she said.
"We expect significant growth in our imports and sales particularly in the current economic conditions where farm raised, lower cost, high quality whitefish fillets could attract significant attention from consumers,” said Jim Bugbee, general manager for QVD USA.
"QVD is the only pangasius plant in the USDC seafood inspection program and has worked tirelessly over the last three years with several key organizations developing standards for pangasius sustainability," said Bui Duc Quy, executive firector QVD Food Co. ". We look forward to developing swai/pangasius as it becomes one of the most popular whitefish in the U.S. market."