Viet Nam’s shrimp exports increased sharply with higher export prices than in previous years, but exports to the US market decreased 7 per cent to US$659 million. — Photo doanhnhansaigon.vn
The US Department of Commerce (DoC) announced its preliminary results of the 12th administrative review (POR 12) of the anti-dumping order on frozen warm water shrimps from Viet Nam.
DoC has put the preliminary rate at 25.39 per cent.
The rate, which was calculated for Viet Nam’s sole exporter Sao Ta Seafoods Joint Stock Company (FIMEX), is much higher than the previously estimated rate of below 2 per cent.
Since FIMEX was the only mandatory respondent in the proceedings, its rate was deemed appropriate for all other shrimp companies in Viet Nam.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP) and the community of shrimp exporters in Viet Nam, there was considerable confusion in the calculation of this amplitude.
VASEP said during the earlier administrative review of anti-dumping lawsuits in the United States, no Vietnamese enterprise had received the margin of dumping at a percentage higher than a single-digit percentage rate. In fact, FIMEX was examined in POR 9 and received a rate of zero per cent.
“We are shocked by this result,” said FIMEX General Director Ho Quoc Luc. “Clearly, DoC has made a mistake. Fortunately, this is only a preliminary decision, and we have a chance to prove why this rate is wrong.”
FIMEX said DoC’s analysis of dumping margin programme showed that it applied an incorrect conversion factor from headless to head-on shrimp. If the conversion had been applied correctly, the margin would only be 1.19 per cent instead of 25.39 per cent.
FIMEX was scheduled to have a verification with DoC officials in January, but the verification was postponed due to the shutdown of the US government. “We were ready for that verification, and I am sure we would have shown DoC officials why our rate was much lower,” Luc said.
The verification has been rescheduled to July this year, and there will also be an opportunity to argue in briefs why the decision is wrong.
According to VASEP, although the preliminary results have not yet been applied and may change in the final round, they may have a significant impact on importers’ psychology in the US as well as on shrimp export activities of Vietnamese enterprises, affecting trading transactions between the two parties, especially while waiting for DoC’s final results.
Based on the above factors, VASEP has requested DoC to quickly review the preliminary results and to make reasonable, timely and fair adjustments to FIMEX and shrimp exporters of Viet Nam.
A VASEP report shows that Viet Nam’s shrimp exports increased sharply with higher export prices than in previous years, but exports to the US market decreased seven per cent to US$659 million. The primary reason for this decline is the impact of the anti-dumping tax. The US currently ranks fourth in the shrimp import market of Viet Nam, instead of the leading position as in previous years. — VNS