Shrimp exporters for out-of-court settlement to escape US duty review

Shrimp exporters for out-of-court settlement to escape US duty review

AJAYAN

Posted online: Monday, June 19, 2006 at 0000 hours IST

KOCHI, JUNE 18: In a bid to escape the administrative review of US anti-dumping duty on shrimp, exporters from Thailand, Ecuador and Vietnam are believed to have gone in for an out-of-court settlement with the petitioners Southern Shrimp Alliance (SSA). A commerce ministry official said during the recent video conferencing the ministry had with the US department of commerce (DoC), the matter was taken up and the officials sought confirmation about the legality and validity of the settlement. However, the DoC officials said they were not aware of any such deals. According to exporters who took up the matter with the ministry, fears of an increase in the duty after the review, process for which had already begun, had forced some of the exporters to go in for such a deal. It was alleged that exporters would pay some relief in the form of a percentage ranging from 1% to 2% to the petitioners SSA. This would ensure a huge amount to the domestic industry represented by the SSA. As the petitioners will not press the case during the review, the duty will remain at the present level for these countries. In case there was a ‘default’ in payment of the settlement amount, the petitioners can take up a case for higher duty the next year. While the video conference was to discuss issues pertaining to sampling and the DoC trying to allay fears of the industry, the issue of ‘settlement’, which would run into crores, and besides the payment due to the domestic industry on account of collection of duty had been a serious point of discussion, said the official. Exporters said the matter had been taken up by importers in the US, who are now demanding the DoC should look into the matter, and ask the SSA to come public on settlement deal. The whole issue of the shrimp import hurting the domestic industry in the US was ‘farce,’ they added.

http://www.financialexpress.com/fe_full_story.php?content_id=130996