VASEP appeals against US anti-dumping duties on Vietnam shrimp

News 10:22 13/10/2014 609
(vasep.com.vn) Vietnam Association Seafood Exporters and Producers (VASEP) filed an appeal to the United States Court of International Trade concerning anti-dumping duties on Vietnamese shrimp imposed by Department of Commerce (DOC) for POR8.

No basis and no reason

“False data and unreasonable basis resulted in very high antidumping tax imposed on Vietnam shrimp after the eighth period of review (POR8).  Differential pricing analysis, the methodology adopted by DOC is unreasonable and lack of basis. This method, lacking scientific, statistical and practical basis, became controversial.” – said Mr. Truong Dinh Hoe, General Secretary of VASEP.

Besides, the inflator data applied to calculate the input costs is also unreasonable. “The surrogate country chosen (Bangladesh) is not proper because DOC used data from 2003. We recommend DOC recalculate based on updated figures to suit the current practical situation. The previous period of review (POR7) had the result of 0% for Vietnam exporters. After a year, anti-dumping duty becomes so high, it is questionable.” – Mr. Truong Dinh Hoe gave some evidences.

Thirty out of 32 Vietnam shrimp exporters to the United States from 1st February 2012 to  31st January 2013 had to pay tax at 6.37%. The two remaining businesses are Minh Phu Seafood Corporation, with 4.98% levied and Soc Trang Seafood Joint Stock Company (STAPIMEX) with 9.75%. Other exporters had to pay 25.76%. This is the highest rate in the past 10 years.

“DOC’s imposition of anti-dumping duties on Vietnamese shrimp products is unfair and contradicts the principle of trade liberalization and the economic and trade ties between the two countries”, said Foreign Ministry spokesman Le Hai Binh on September 27. “Vietnamese businesses do not dump shrimp products on the US market and do not damage or threaten damage to the US shrimp industry”, the spokesman affirmed.

Expanding markets

High anti-dumping duty also directly affects US consumers. As tax increase, Vietnam now has to seek for other markets. In the background of reduction in shrimp production worldwide, there is a shortage in shrimp supply. US importers still has to import from Vietnam. Limited supply along with high anti-dumping tariff will result in higher prices.

Statistics on shrimp imports from USDA showed that in the first 7 months of 2014, average shrimp import prices ranged from US$ 9.1/kg to US$ 12/kg, upped 32% over the same period in 2013. Shrimp export price to the US increased dramatically in the past month. , Black tiger shrimp had high demand. Shrimp of 6-8 counted (in pound) is sold at US$ 12.8 - 13 /kg, up US$ 1 from June’s price. Vietnam shrimp exports to the US therefore had impressive growth. Statistics from Vietnam Customs show that as of 15th August 2014, shrimp exports to the US reached nearly US$ 700 million, up 80% year on year.

“Increase in price is still much lower than the tax rate imposed by DOC, creating losses for businesses. Companies have to move to other markets but value added products are still sold in US market.” said Mr. Nguyen Van Kich, General Director of Cafatex Corporation.  

Shrimp exports to other markets had tremendous growth this year. As of August 2014, shrimp exports to South Korea reached US$ 201.6 million, up 99.6% year on year, making Vietnam become the largest shrimp supplier for South Korea.  Shrimp exports to EU reached US$ 428.9 million, up 96.2%. Shrimp exports to Japan recovered, with growth rate of 5%.

Seizing opportunities from global shrimp shortage, whiteleg shrimp farming areas in Vietnam reached 81,700 hectare while that of black tiger shrimp remained unchanged at more than 560,000 hectare. Shrimp harvested was nearly 320,000 MT, up 6.8%. 

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