Last month, FDAImports.com attended the Chennai Seafood Show, where we had the pleasure of meeting and talking with many members of the Indian seafood industry. The industry is very interested in finding clarification on duties, rebates, and preferential rates – complex topics, made even more so by recent complications in Customs’ requirements for countervailing duties, which have since calmed down.
Countervailing Duties (CVD)
In June 2013 the U.S. International Trade Administration (ITA) found that Indian producers and exporters of frozen warmwater shrimp receive countervailable subsidies from the Indian government.[1] Because of this, Customs and Border Protection (CBP) began requiring Indian shrimp exporters to pay a 5.91% cash deposit for entries on or after June 4, 2013. At the same time, CBP suspended all liquidation for these entries, waiting for the Department of Commerce to set the final determination. In October 2013, the ITC found that U.S. industry is not injured or threatened by government-subsidized warmwater shrimp imports from India (HTS 0306.17.00, 1605.21.10, and 1605.29.10).[2] Therefore, CBP is now refunding the 5.91% cash deposit at liquidation for entries on or after June 4, 2013.[3]
Antidumping Duties (AD)
The default AD for all Indian warmwater shrimp manufacturers/exporters is 10.17%. However, companies can always request a preferential AD rate – crucial to business due to the big difference between the preferential rate and the default rate. For example, the most recent preferential rate is only 3.49%.[4] Every February, ITA gives firms the opportunity to request an administrative review. Indian export companies can self-nominate by filing the required documents, and the following year ITA publishes the determination of the preferential rate and the companies to which it will apply.
What Does It Mean For Me?
In order to take advantage of preferential rates, companies face a complex set of requirements. Additionally, the ITA only accepts filings in February, and the Department of Commerce will reject any documents if they do not comply with procedures or formats in the regulation.
FDAImports.com’s long experience working with seafood processors and exporters on FDA and U.S. Customs compliance allows the team to efficiently find solutions to problems of all sizes and complexities. Please contact Mr. Rick Quinn at India@fdaimports.com or Mr. Shanmugam Jayakumar at sjayakumar@fdaimports.com to discuss how we can help you with FDA and Customs regulatory requirements.
[1] International Trade Administration, Certain Frozen Warmwater Shrimp From India: Preliminary Countervailing Duty Determination, 78 FR 33344 (June 4, 2013).
[2] International Trade Commission, Frozen Warmwater Shrimp From China, Ecuador, India, Malaysia, and Vietnam, 78 FR 64009 (October 25, 2013).
[3] Message to CBP 3319303, November 15, 2013, available at http://addcvd.cbp.gov/index.asp?docID=3319303&qu=shrimp+india&vw=detail.
[4] International Trade Administration, Certain Frozen Warmwater Shrimp From India: Final Results of Antidumping Duty Administrative Review and Final No Shipment Determination; 2011-2012, 78 FR 42492 (July 16, 2013).
