Vietnam’s largest shrimp producer, Minh Phu, has dismissed allegations made by a U.S. politician that the company is evading anti-dumping duties on shrimp from India.
U.S. Representative Darin LaHood (R-Illinois) on 17 May sent a letter to the U.S. Customs and Border Protection requesting the governmental agency initiate an investigation of anti-dumping duty evasion against Minh Phu. The letter drew attention to an e-allegation apparently filed against Minh Phu on 12 May alleging accusing Minh Phu of importing frozen shrimp from India and, with minimal processing, re-exporting the shrimp to the U.S. as Vietnamese shrimp. LaHood requested that the CBP investigate whether Minh Phu and its U.S.-based import division, Mseafood Corporation, are thereby evading anti-dumping duties on shrimp from India.
“If true, CBP must address this ongoing evasion of the Indian shrimp antidumping order and mislabeling of merchandise as soon as possible,” LaHood wrote in the letter.
LaHood said Minh Phu has become one of the largest shrimp exporters in the world thanks to this relationship.
“Data included in the case file indicates that immediately after the Minh Phu Group was removed from the Vietnam shrimp antidumping order, [it] significantly ramped up exports to the U.S. through Mseafood to take advantage of its excluded status."
At the same time, data included in the case file indicates that shrimp producers in India also ramped up their exports of shrimp merchandise to Vietnam, the congressman said.
The Vietnamese shrimp company held a press conference on 7 June where its chairman and CEO, Le Van Quang, said his company is not involved in any evasion of anti-dumping duties in the U.S. market.
“Our company is not importing shrimp from India as a way of evading anti-dumping duties in the United States,” Minh Phu said in a statement on 7 June. It said the matter came to its attention on 5 June.
Quang said Minh Phu is importing shrimp from India to meet demand for processed shrimp in markets other than the U.S, and to maintain the stability of employment during periods of supply shortage in Vietnam.
The U.S. Department of Commerce (DOC) began applying anti-dumping duties to frozen shrimp from Vietnam, India, and others in 2005. As the DOC revoked the duties against Minh Phu in July 2016, the Vietnamese producer and its U.S. subsidiary have not been required to provide the DOC with information and data on production, and were not subject to annual inspection visits by DOC officials, according to LaHood’s letter.
Quang challenged the U.S. congressman’s allegations, indicating that its exports to the U.S. have decreased over the years despite of the exemption from U.S. anti-dumping duty in 2016.
“Minh Phu’s exports to the U.S. fell from over 41 percent in the first quarter of 2015 to 33 percent of the total export shrimp volume over the same period in 2019,” Minh Phu said, adding that the company has continued diversifying its export markets to Europe and neighboring countries.
In the latest development, Vietnam’s Ministry of Industry and Trade said Monday it has been informed of the allegations made by LaHood against Minh Phu. The ministry said it will cooperate closely with relevant agencies in Vietnam during its communication with the U.S. side to ensure the legitimate interests of the Vietnamese shrimp exporters are protected.
Minh Phu said it has not officially received any notice or order with respect to any allegation or request from CBP or from any other U.S. authority. Its exports of shrimp are still proceeding to ports of entry to the United States as usual – with full compliance of the U.S. Seafood Import Monitoring Program, Quang said.
Minh Phu admitted that it has imported shrimp from India. But the imports account for about 10 percent of Minh Phu’s total shrimp inputs, which the company claims is a small proportion of its total raw materials used for further processing.
Importing is necessary for Minh Phu’s factories to bridge the shortfall in shrimp raw materials in Vietnam due to the seasonality of shrimp harvests and the effects of climate change, and to stabilize the employment and incomes for its workers, the company said in its statement.
Minh Phu said all of its shrimp customers in the U.S. require their product to be sourced from local, sustainable sources, including its certified farms.
“We have firm controls on the origins and quality of our products. We strongly believe that any CBP investigation will find that the company has not violated any U.S. laws,” Quang said.
At present, Minh Phu exports its shrimp products to more than 50 countries and territories worldwide, including the U.S., Japan, Canada, the European Union, and South Korea. The company’s shrimp exports reached more than 67,000 metric tons last year, totaling sales of more than USD 750 million (EUR 662.9 million).
Minh Phu owners and operates several large integrated shrimp farms located mainly in southern Vietnam, company’s data showed.
