Vietnamese shrimp exports to the United States are facing the looming threat of countervailing duties

03/04/2024 09:52

Vietnam, along with India and Ecuador, may be subject to countervailing duties ranging from under 2% to a maximum of 196% on shrimp exports to the US.

The Vietnam Association of Seafood Exporters and Producers (VASEP) has announced that the preliminary countervailing duties on shrimp exports from Vietnam, India, and Ecuador by the U.S. Department of Commerce (DOC) are expected to take effect in the coming days.

The duties will be refunded if investigators determine that these countries did not violate providing illegal subsidies or that subsidized imports did not harm the U.S. shrimp industry.

However, the final decision will not be made until the fall or winter of 2024. This means shrimp exporters may bear the tax burden for almost the entire year.

According to VASEP, the required deposit tax rate for most Vietnamese enterprises is 2.84% or higher. Specifically, for Sóc Trăng Seafood Joint Stock Company, it is 2.84%, while for Thong Thuan Company, it is 196.41%.

Currently, Vietnam, along with India, Ecuador, and Indonesia, are the four target countries of the DOC in this review cycle, accounting for 90% of the shrimp imports into the US in 2023. Among them, India exported the most shrimp, followed by Ecuador and Indonesia. Currently, the tax rates for Indian shrimp range from 3.89% to 4.72%; for Ecuador, it ranges from 1.69% to 13.41%; as for Indonesia, the tax rate is below 1% but does not require a deposit.

Source: vnexpress.net