Vietnam's Shrimp Exports to US Face New Barrier

Vietnam's Shrimp Exports to US Face New Barrier

Vietnamese shrimp exporters are likely to face new challenges and difficulties when exporting to the US as its importers require foreign partners to deposit, export and deliver products themselves before selling to local importers in the US market.

The major reason is that US shrimp importers, from February this year, have had to pay a deposit representing temporary duty starting in line with new regulations from US Customs on goods subject to anti-dumping duty rates imported from countries involved in the shrimp anti-dumping case last year.

“The US shrimp importers do not want to do that and they turn it to foreign exporters,” said Truong Dinh Hoe, Vice General Secretary of Vietnam Association of Seafood Exporters and Producers (VASEP).

“It is exporters not US importers that have to suffer from this disadvantage as the later require the former to pay the money and then they simply receive the goods in the US. All possible risks after the revision of course will come to exporters,” Hoe said.

The sum of money can be as much as the import value of the products over a year based on the final determination from the US Department of Commerce (DoC) in the shrimp anti-dumping case last year.

Earlier, an US importer could have a deposit of US$50,000 and pay for its debts after import of each container. However, in line with the new regulations, the amount of money is as much as anti-dumping duty calculated over 12 months.

The DoC will review the action of dumping of these countries to decide final anti-dumping duty rates. The revision will take at least one year. On the other hand, importers will have to pay deposit for both 2007 and 2008.

Vietnam last year exported shrimp products worth US$420 million to the US market.

• T.V