The 5.91 percent countervailing duty imposed by the U.S. Government on shrimps from India is unlikely to hit the volume of exports to the U.S., which is India’s largest shrimp market.
The duty, announced by the US Department of Commerce on 29 May, is sure to raise exporters’ costs. Together with the existing 3.5 percent anti-dumping duty, exporters now have to pay nearly 9 percent of the value of their shipments to the US Custom and Border Patrol upfront at the port of entry. This is an additional cost that most likely will be passed on to shrimp producers.
Ravi Reddy, President of Seafood Exporters Association of India, said that the duty was an ‘unfortunate’ extra burden on the exporters. There would also be a lot of administrative expenses, associated with the duty, too. “It is not going to be smooth for us,” he told Business Line.
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