The US Commerce Department plans to impose duties of 3.76 per cent on 185 Indian shrimp exporters

The US Department of Commerce plans to impose a 3.76 per cent tax rate on 185 Indian shrimp exporters, mainly in the warm-water and frozen shrimp export trade, in its 17th administrative review.

The review was conducted to assess sales of frozen shrimp from 187 exporters from India between Feb 1, 2021 and Jan 31, 2022.

In its preliminary conclusion, the Commerce Department said some frozen shrimp products from India had been sold to the US market at prices below their normal value.

The two compulsory defendants, Megaa Moda PVT. Ltd and NK Marine Exports LLP, had preliminary tax rates of 7.92 per cent and 1.43 per cent respectively. Based on the tax rates applied to the two compulsory defendants, the dumping margin for the remaining 185 Indian companies is 3.76 per cent.

These earnings ratios are higher than the final results of the 16th Administrative review, covering the period from February 1, 2020 to January 31, 2021. In that review, LNSK Green House Agro Products LLP's profit margin was maintained at 0%, while Royal imports and Exports and 161 other Indian shrimp exporters were taxed at 3.01%.

The 15th administrative review, conducted from Feb 1, 2019 to Jan 31, 2020, set a 7.15% tax rate on 152 Indian shrimp exporters.

If the dumping rate of 3.76 per cent is maintained in the final outcome of the 17th administrative review, it would be the fourth highest rate imposed by the US Commerce Department on Indian shrimp exporters since the review began in 2007.

India has been the top exporter of shrimp to the United States since 2013. India exported 303,574 tonnes of shrimp to the US in 2022, down from 340, 892 tonnes in 2021.