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Commerce finds subsidized Asian shrimp imports

   The U.S. Commerce Department has found shippers of certain frozen shrimp in China, India, Malaysia, Thailand and Vietnam receive government subsidies, while those in Ecuador and Indonesia do not.
   In its China investigation, Commerce preliminarily determined that the sole respondent, Zhanjiang Guolian Aquatic Products Co., Ltd. and its cross-owed affiliates, received a subsidy rate of 5.76 percent. All other producers and exporters in China have also been assigned a preliminary subsidy rate of 5.76 percent.
   For India, Commerce preliminarily determined that two respondents, Devi Fisheries Ltd. and Devi Seafoods Ltd., received subsidy rates of 10.41 percent and 11.32 percent, respectively. All other producers and exporters in the country were assigned a preliminary subsidy rate of 10.87 percent.
   Commerce preliminarily determined that the two respondents, Asia Aquaculture (M) Sdn. Bhd. and Kian Huat Aquaculture Sdn. Bhd., of Malaysia received subsidy rates of 10.80 percent and 62.74 percent, respectively. All other producers and exporters in Malaysia have been assigned a preliminary subsidy rate of 62.74 percent.
   In its Thailand investigation, Commerce preliminarily determined that the two respondents, Marine Gold Products Ltd. and Thai Union Frozen Products Public Co. Ltd. received subsidy rates of 1.75 percent and 2.09 percent, respectively. All other producers and exporters in the Southeast Asian country have been assigned a preliminary subsidy rate of 2.09 percent.
   In addition, Commerce preliminarily determined that two respondents, Minh Qui Seafoods Co. Ltd. and Nha Trang Seaproduct Co., both of Vietnam, received subsidy rates of 5.08 percent and 7.05 percent, respectively. All other producers and exporters in the country were assigned a preliminary subsidy rate of 6.07 percent.
   However, Commerce determined that two respondents, Sociedad Nacional de Galapagos C.A. and Promarisco S.A., of Ecuador received subsidy rates of 0.7 percent and 0.39 percent, respectively. “These rates are de minimis, resulting in a preliminary negative determination that applies to the country as a whole,” the department said.
   Similarly, for Indonesia, Commerce found the two respondents, PT. Central Pertiwi Bahari and PT. First Marine Seafoods, received subsidy rates of 0.81 percent and 1.22 percent, respectively. These rates were also de minimis, resulting in a preliminary negative determination that applies to the country as a whole.
   As a result of the preliminary affirmative determinations, Commerce will instruct Customs and Border Protection to collect cash deposits based on these preliminary rates. Cash deposits will not be required on imports of shrimp from Ecuador or Indonesia.
   The petitioner for these investigations was the Mississippi-based Coalition of Gulf Shrimp Industries and its members, which are scattered throughout the U.S. Gulf.
   In 2012, imports of certain frozen warmwater shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam were valued at $101.9 million, $499.7 million, $551.2 million, $634 million, $142 million, $1.1 billion, and $426.2 million, respectively, Commerce noted.
   Commerce is scheduled to announce its final determinations in its countervailing duty investigation on Aug. 13.
   If the department makes affirmative final determinations, and the U.S. International Trade Commission makes affirmative final determinations that imports of certain frozen warmwater shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand, and and/or Vietnam injure or threaten injury to the domestic industry, Commerce will issue countervailing duty orders. If, for a specific country, the final determination is negative, then no order will be issued.

Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.