Counter Vailing Duty imposed on Indian Shrimp

Close on the heels of imposing higher countervailing duty by the US Department of Commerce, the International Trade Commission (ITC) of that country has voted to impose duties on frozen shrimps from India, Ecuador, Vietnam, and Indonesia after determining the US industry is being negatively impacted by imports of the products.  

Nitin Awasthi, Analyst, InCred Capital pointed out that Indian shrimp exporters would be hit negatively by the decision as they have to book additional costs related to the increased CVD, especially for sales completed over the past six months, potentially impacting next financial results. Ecuador holds a competitive advantage over Indian companies over CVD, which may affect market positioning and profitability for Indian exporters, he said.  

It may be recalled that the US Department of Commerce imposed 5.7 per cent CVD on Indian shrimps, while 3.75 per cent for Ecuador and 2.84 per cent for Indonesia and Vietnam.

The decision to impose antidumping or CVD duty was taken after the American Shrimp Processors Association filed trade petitions against India, Ecuador, Indonesia and Vietnam. However, Ecuadorian companies had negotiated a much lower CVD, whereas the Indian companies were surprised by an increase over the preliminary rates. Ecuador holds a competitive advantage over Indian companies regarding CVD, which will affect market positioning and profitability for Indian exporters, Awasthi said.