US rules against imposition of countervailing duty on Indian seafood exports

KOCHI: Providing a major relief of Indian seafood sector, the United States has finally decided not to impose countervailing duty on imports of frozen warm water shrimp from India along with countries like China, Ecuador, Malaysia and Vietnam.


The United States International Trade Commission (USITC) has determined that the US industry is 'neither materially injured nor threatened with material injury' by imports of frozen warm water shrimp from these countries. USITC voted 4-2 against imposition of CVD against India and other six countries.

The ruling has been made possible with the efforts taken by the Marine Products Export Development Authority on behalf of Indian government and the Indian seafood industry in fighting for India's cause. The US is the third largest market for Indian seafood exports and accounted for 21% of the total shipments, which fetched Rs 18,856 crore in 2012-13.

With the CVD cash deposit rate of 5.85% imposed during the time of investigation and present level of anti dumping duty of 3.49%, Indian Shrimp exports to USA would have been costlier than any of its closest competitors. Moreover if countervailing duty had been imposed eventually, it would have helped Thailand and Indonesia to monopolize the US shrimp market.

But the USITC's today ruling, which is the last step in this investigation, came in favour of India and six other countries and negates the US Department of Commerce's ( USDOC) initial decision to impose it. Due to this none of the seven countries including India need pay duties for their shrimp exports to US.

It all started with, when the Coalition of Gulf Shrimp Industries filed a petition on behalf of its 28 member companies on 28,December, 2012 claiming that subsidies provided by India to its shrimp Industry provide an unfair advantage for Indian shrimp exports to the US which resulted in Indian exporters selling their products at lower prices.