POR8 stuns Vietnamese shrimp exporters
The Competition Administration Department (CAD) on March 26 said that DOC has released the result of the eighth period of review (POR8) on the tax rates imposed on the warm water frozen shrimp imports from Vietnam in the period from February 1, 2012 to January 31, 2013.
The two Vietnamese compulsory defendants, Minh Phu JSC and Soc Trang Seafood JSC, bear the preliminary tax rates of 4.98 percent and 9.75 percent, respectively. The average tax rate for voluntary defendants is 6.37 percent. The other enterprises bear the nation’s tax rate at 25.76 percent.
The above said preliminary tax rates took effect on March 24, which would be applied until the DOC releases the final decision, slated for September 2014.
Vietnamese shrimp exporters have got stunned by the thunder-like news: the preliminary tax rate decided by POR8 is unexpectedly higher than that decided by the POR7 (zero percent) in September 2013.
The recently decided tax rates are also higher than that in most of the administrative reviews, below 4.57 percent, according to CAD.
An official of the Fisheries Association noted that the DOC applied another calculation method for the POR8, while choosing Bangladesh as the reference country.
Explaining why Vietnam’s shrimps were imposed the zero tax rate at the POR7, he said that the US market was then “thirsty” for shrimp at that time, therefore, the shrimp from Vietnam were taxed zero percent. As the shrimp supplies have become profuse again in the US, imports would be restricted to ease the pressure on the local production.
The lawyers representing Vietnamese seafood exporters said Vietnam still has the opportunities to claim for the tax reductions, especially for compulsory defendants.
According to Truong Dinh Hoe, Secretary General of the Vietnam Seafood Exporters and Producers (VASEP), a delegation of the Ministry of Agriculture and Rural Development’s officials to be headed by Deputy Minister Vu Van Tam would leave on April 22 for the US, where they would carry out lobbying activities on the issues relating to the Farm Bill.
“VASEP has suggested putting the shrimp anti-dumping into discussion at the working sessions,” Hoe said, adding that VASEP is seeking the support from the government agencies, including the Ministry of Industry and Trade and the Ministry of Foreign Affairs.
Tran Thien Hai, Chair of Minh Hai Seafood JSC, a big shrimp exporter, noted that despite the big difficulties, the US remains a big market for Vietnam.
He affirmed that the supply remains low to satisfy the demand due to the crop failure, shrimp epidemics. Therefore, the shrimp price is not likely to fall down.
“Vietnamese exporters should stay calm and keep the prices stable,” he said, warning that the importers may exploit the information to force the prices down.
In 2013, the US surpassed Japan to become the Vietnam’s biggest shrimp importer.
