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US’s antidumping duty ruling lacks legal basis: VASEP

The US’s recent ruling to impose unprecedentedly high import duties on frozen Tra fish fillets from Vietnam shows a level of unfairness and is not in line with the usual antidumping law provisions.
US’s antidumping duty ruling lacks legal basis: VASEP ảnh 1Tra fish processing (Source: VNA)

HCM City (VNA) - The US’s recent ruling toimpose unprecedentedly high import duties on frozen Tra fish fillets fromVietnam shows a level of unfairness and is not in line with the usualantidumping law provisions, said Secretary General of the Vietnam Associationof Seafood Exporters and Producers (VASEP) Truong Dinh Hoe.

The US Department of Commerce (DOC) has released finalresults of the 13th administrative review of anti-dumping duties onVietnamese Tra fish (pangasius) exporters to the US (POR13) for the period fromAugust 1, 2015 through July 31, 2016.

Under the decision, GODACO Seafood JSC, which wasselected as the mandatory respondent during the POR13, is subject to a tax rateof 3.87 USD per kilogramme.

The rate, which is 5.61 times higher than 0.60 USD ofPOR12 and the highest ever, will also serve as the blanket duty for Tra fishexports from other Vietnamese producers to the US.

GODACO has provided the DOC with all necessarydocuments and timely responded its questions, but the DOC did not fullyconsider the provided information and applied adverse factors available (AFA)that led to unprecedentedly high tax rates, said the firm’s Director GeneralNguyen Van Dao.

There is a lack of a legal basis when the DOC used the AFA to determine thepreliminary duty margin, he added.

VASEP and Vietnamese exporters opposed this unfairdecision and consider taking necessary legal steps to soon file a complaint tothe US Court of International Trade (CIT).

“We request the DOC to thoroughly review data and records provided byVietnamese enterprises as a basis for calculating accurate and reasonable taxrates for those participating in the POR13,” VASEP Secretary General Truong DinhHoe said.

With the rate of 3.87 USD per kilogramme, Vietnameseexporters will have to sell at very high prices of about 7.8-8 USD perkilogramme to earn profit, said Nguyen Van Kich, Director General of CafatexSeafood JSC.

That prices are not competitive in the American market as similar domesticproducts are only fetched at over 4 USD per kilogramme, so many exporters willhave to stop shipments to US and look for other markets overseas, he added.

GODACO Director General Nguyen Van Dao said his company plans to stop exportingto the US and shift its focus on more favourable markets such as the EU andChina.

The Ministry of Industry and Trade said it asked the US side to review andadjust the way to determine the tax level to the Vietnamese companies concernedon the basis of objectivity and compliance with the regulations of the WorldTrade Organization (WTO) and fairness for all sides involved.

The ministry will continue working with other ministries and sectors related,VASEP and domestic exporters of Tra fish to discuss all settlement measurestowards ensuring the legitimate rights and interests of Vietnamese businesses.

In the meantime, the US is the second largest importer of Vietnam’s Tra fish.In 2017, Vietnam’s export of Tra fish to the market experienced a drop of 11percent from 2016.

In 2017, the country’s export of Tra fish, however,enjoyed a year-on-year growth rate of 4.3 percent to hit 1.78 billion USD,contributing 21.45 percent of the fisheries sector’s export earnings.-VNA
VNA

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