Twenty three Vietnamese companies are among 104 shrimp exporters from six countries and US shrimp producers reaching agreement on bypassing the annual tax review by the US Department of Commerce (DOC), said local newspaper on August 18.
The first official document was sent to the DOC by Dewey Ballantine Law Firm, representing the plaintiff - the South Shrimp Alliance (SSA), stating that it agreed to withdraw its request for a review of dumping taxes applied to 19 Vietnamese companies.
Apart from another four companies later added to the list, those unlisted will still be imposed taxes at the current rate until the next review by the DOC administration.
Under the agreement signed by the 104 shrimp exporters and the SSA, the exporters will pay sums of money directly to the SSA so that the alliance can lobby US authorities for inspection of antibiotic residues in imported shrimp. SSA will also lobby US customs for stricter supervision over the imports in order to prevent dumping tax evasion.
Some sources said that the exporters will pay sums equivalent to 1 or 2 per cent of total annual export turnover, while in return SSA will withdraw its request for a review to increase tax rates, leaving the anti-dumping tax rates unchanged for these companies.
SSA spokeswoman Deborah Long said that agreements with exporters from six countries (Brazil, China, Ecuador, India, Thailand, and Vietnam) were different. Some agreements consider the annual export turnover, while the others consider fixed rates.
Ms Long said that SSA members would only agree to cease lobbying for the tax review in return for funds with which they can lobby US authorities for antibiotic residue inspections and control of tax evasion. Exporters hope that the payment will be seen as their commitment to cooperating with the SSA in settling these disputes.
However, several companies that are imposed at the highest tax rates, could not find agreement with SSA. For example, taxes imposed on Brazilian firm Norte Pesca will remain at 67.8 per cent, Vietnamese firm Kim Anh at 25.76 per cent, and Indian firm Hindustan Lever Limited at 13.42 per cent.
At present, shrimp is the largest export earner for Vietnam's seafood industry, accounting for more than half of Vietnam's total seafood export revenue of $2.6 billion last year.
Vietnam Financial Times
Vietnamese
