Ecuador hit with 11.68% shrimp duty, Thailand and Indonesia get 0%

News 15:39 13/09/2014 496
The U.S. Dept of Commerce has slammed Ecuador with 11.68% Countervailing Duty while determining that Indonesia and Thailand get zero, ue to deminimus determinations.

On the same day as the hearing before the International Trade Commission on whether the US domestic shrimp industry suffered injury from subsidized exports, the Dept. of Commerce stunned the room when they announced final CVD duty rates.

The final rates are:

Ecuador:  

   Sociedad Nacional e Galapogos  10.13%                    Promarisco      13.51%            All Others        11.68%

In the preliminary phase, Ecuador had a deminimus (zero) ruling.

Thailand:    deminimus  (zero) Indonesia:  deminimus (zero) India:  

    Devi Fisheries    6.16%                 Devi Seafood     5.54%     All others          5.85% China:  18.16% Malaysia:  

    Asia Aquaculture   10.8%  

    All others   54.5%

Vietnam:  

    Minh Qui     7.88%  

    Nha Trang   1.15%                

    All Others    4.52%

Here is a link to the final Dept. of Commerce ruling. 

Ecuador was the big surprise.  In June, Ecuador was the 2nd biggest shrimp exporter to the US. The huge change in duty rates is going to lead to major disruption in the shrimp market.  Already this afternoon there are reports of Ecuador suppliers suspending sales.

The duty rates could be retroactive to when the preliminary rates were published around the beginning of June.   However, the Dept of Commerce could also make a different determination.

The rates for India are slightly lower, and they are lower for Vietnam.

At the ITC hearing today, which  runs on a separate track, the exclusion of Thailand and Indonesia, which were the number 1 and 3 suppliers to the US in the period from 2010-2012, blows a big hole in the entire countervailing duty case, according to lawyers for the respondents.

The reason is that when all seven countries were involved, they represented 70% to 75% of total shrimp imports to the US.  But with Thailand and Indonesia excluded, the countervailing duties would only apply to about 40% of US imports, leaving 60% of imports untouched.  This takes away the rationale of providing protection from injury from the domestic producers.

With the final Dept. of Commerce ruling, the ITC final determination of injury will become critical. They are due to make a final decision on Sept. 19th, when they will vote.  If they determine no injury to domestic producers was caused by imports, the all CVD duties on shrimp are rescinded.

At the hearing today, there was skepticism voiced by some of the commissioners as to whether injury actually occurred.

We will have a full analysis of the hearing in a separate article.

For now, given the current situation of the leading producing countries, this is a huge blow to the US shrimp supply as Ecuador was one of the largest producers not impacted by EMS.

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