Kochi: Shrimp exports to the US, of the order of over Rs 4,000-crore, are faced with a threat of fresh duties. The US-based Coalition of Gulf Shrimp Industries has sought imposition of duties for ‘unfair subsidies’ against India as also China, Vietnam, Indonesia, Malaysia, Thailand and Ecuador.

Exporters and the authorities are expected to evolve a strategy to counter the demand for countervailing duties, at a meeting in Chennai on Tuesday.

The CGSI move comes a decade after shrimp exporters have begun a fight against imposition of anti-dumping duty on the charge that they were selling the produce at price lower than that in other countries and thereby dumping the material in the US.

It was the decade-long legal battle that finally brought down the anti-dumping duty from 10.53 per cent to 2.52. Shrimp exports to the US had been picking up, and between January and October, they fetched around Rs .3,145crore against Rs .2,485 crore during the same period last year.

Exporters, along with officials of the Marine Products Export Development Authority, are meeting in Chennai as the US International Trade Commission would be sending a questionnaire to exporters by Tuesday. It is to seek replies from exporters in 10 days, complete its hearing and make a preliminary determination by February 11. The US department of commerce (DoC) will also probe the matter.

The petition points to countervailable subsidy programmes like the DEPB and VKGUY schemes, SEZ and EOU status for units and export credit guarantees and wants these to be included in the investigation by the DoC as they would affect the domestic (US) industry.

01 Jan 2013

By Ajayan

Source: deccanchronicle.com