US anti-dumping duties put Vietnamese shrimp exporters under pressure

The U.S. Department of Commerce (DOC) has announced its final results for the 20th administrative review of anti-dumping duties on frozen warmwater shrimp imported from Vietnam.

Ho Quoc Luc, chairman of Sao Ta Foods JSC, said on Wednesday that the company's duty rate had been slightly reduced from 10.76 percent to 10.71 percent, while Soc Trang Seafood JSC saw its rate rise from 6.30 percent to 6.36 percent.

Other exporters eligible for a separate rate face a duty of 7.59 percent, leaving Sao Ta with the highest rate among the companies covered by the announcement.

Exporters question US calculation methods

Sao Ta’s representative expressed disappointment with the final determination, saying the firm's extensive efforts to provide explanations and supporting evidence had failed to deliver meaningful results.

He said that in its preliminary findings, the DOC used surrogate values for certain production inputs that did not accurately reflect the actual operating conditions of Vietnamese companies.

For example, the surrogate value used for shrimp feed was more than 10 times the actual cost, leading to distortions in the calculation of dumping margins.

Although Sao Ta managed to secure a slight reduction in its duty rate, Luc said the adjustment was too small to suggest that the company's objections had been adequately addressed.

He acknowledged the DOC's authority to conduct investigations under U.S. law but stressed that exporters also had the right to challenge inaccurate calculations and submit supporting evidence.

Luc said the new duty would weaken Sao Ta's competitiveness in the U.S. market in the short term, but the company had no intention of withdrawing from one of its most important export destinations.

"We have no reason to abandon a market with strong demand and major customers with whom we have maintained business relationships for more than 20 years. But we will not pursue growth at any cost," he said.

Sao Ta is considering consulting legal advisers about challenging the determination through the relevant U.S. authorities in hopes of securing a fairer duty rate.

Vo Van Phuc, chairman and general director of Vietnam Clean Seafood Corporation, said his company was among the exporters facing a 7.59-percent duty, up from the previous rate of 4.84 percent.

Vo Van Phuc, chairman and general director of Vietnam Clean Seafood Corporation, said his company was among the exporters facing a 7.59-percent duty, up from the previous rate of 4.84 percent.

He raised concerns about the DOC's calculation method, particularly its treatment of shrimp feed costs.

According to Phuc, the DOC applied feed prices for juvenile shrimp, which account for only around six percent of total feed use, to all feed used for market-size shrimp.

He argued that the approach unfairly disadvantaged companies with integrated shrimp-farming and processing operations, which would normally benefit from greater control over their supply chains.

Phuc warned that the higher duties would significantly affect Vietnamese shrimp exporters and indirectly hurt domestic shrimp farmers.

He said his company would join other Vietnamese shrimp businesses in challenging the determination before the U.S. Court of International Trade.