Reduced anti-dumping tax on warm-water frozen shrimp
The seventh anti-dumping tax (POR7) on frozen warm-water shrimp exported from Vietnam to the US market will be reduced compared to the final tax rate of the previous administrative review (POR6). This is a positive result for frozen warm-water shrimp from Vietnam.
The seventh anti-dumping tax (POR7) on frozen warm-water shrimp exported from Vietnam to the US market will be reduced compared to the final tax rate of the previous administrative review (POR6). This is a positive result for frozen warm-water shrimp from Vietnam.
Processing frozen shrimp at Cafatex Company (Hau Giang).
On March 21, the Competition Management Department (Ministry of Industry and Trade) said that the US Department of Commerce (DOC) has just announced the Preliminary Decision of the 7th anti-dumping tax review (POR7) on frozen warm-water shrimp exported from Vietnam to the US market.
Accordingly, the provisional tax rate for all mandatory defendant companies (Vietnamese exporters whose export volume accounts for the majority of the total shrimp exported to the US, selected by DOC as mandatory defendants to participate in the investigation process) is 0.00%.
The provisional tax rate for voluntary respondents (enterprises that are not selected for investigation but voluntarily participate in the investigation) is based on the average tax rate for mandatory respondents of 0.00%.
The nationwide duty rate (for the remaining exporters who did not voluntarily participate in the investigation or participated incompletely and could not demonstrate that they operated independently of government control) was 25.76%.
With the preliminary decision of this tax review, Vietnam's Minh Phu Group
The Ministry of Industry and Trade believes that the above preliminary tax rate is a very positive result compared to the tax rates in previous administrative reviews and is the tax rate of the first administrative review applying the new US regulation on not using the zeroing method when calculating dumping margins (regulation effective from April 16, 2012).
Thus, with a preliminary tax rate of 0%, it shows that the zeroing method has a great influence and impact on the tax rates of Vietnamese defendants.
The above preliminary results with the application of the new regulation on non-zeroing of the US are a positive sign for the US Department of Commerce to make the final decision of POR7 expected in July 2013.
However, regarding the national tax rate, the US still applies a very high tax rate (25.76%) to defendants who do not participate or do not fully participate in the investigation and cannot prove that they operate independently of government control as in previous administrative reviews against Vietnam. This tax rate is calculated by DOC based on unfavorable facts, often provided by the plaintiff, resulting in a very high tax rate. This is the tax rate the US often applies to countries with economies considered non-market like Vietnam.
The Competition Authority said that after the DOC issues a preliminary decision, if interested parties want to request a hearing or attend a hearing, they must send a written request to the DOC electronically via the IA ACCESS system within 30 days after the DOC publishes the notice of the preliminary decision. On that basis, the DOC will notify the time of the hearing for the parties to confirm. By attending the hearing, interested parties can express their views and comments on the DOC's preliminary decision as well as a number of related issues for the DOC to consider before making a final decision.
Currently, Minh Phu and Nha Trang Seafood are also mandatory defendants in the US anti-subsidy investigation on shrimp products initiated in January 2013. This case is in the stage where the defendant enterprises are answering the questionnaire issued by DOC.
Currently, Vietnam's warmwater frozen shrimp products have been subject to anti-dumping duties from the US since 2004 and have undergone seven annual administrative reviews (POR). The decisions related to US anti-dumping duties on shrimp have had a significant impact on Vietnam's shrimp production industry.
According to (News) - LC
