KOCHI: Seafood Exporters’ Association of India (SEAI) has welcomed a WTO ruling striking down demand from the United States for ‘enhanced continuous bond requirement’ on shrimp exported to that country.
SEAI president Anwar Hashim said that the association welcomed the WTO ruling.
He expressed confidence that the development would help Indian shrimp exports business significantly. An appellate body of the World Trade Organisation, deciding last week on two challenges filed by Thailand and India, ruled that specific action such as the demand for enhanced bond was not in keeping with the anti-dumping agreement.
The appellate body upheld its ruling in February this year that “the application of the bond requirement is inconsistent with Article 18.1 of the anti-dumping agreement”.
In June 2006, India had approached the WTO with a complaint against the ‘enhanced bond requirement’ demanded by the U.S. Customs and Border Protection Agency.
The bond requirement came in the wake of the anti-dumping duty imposed by the U.S. in 2004 on frozen warm-water shrimp from India and five other countries, including China and Brazil.
Anti-dumping duty is imposed on any product or produce when the U.S. feels that the item is exported to that market at less than the cost of production.
The second administrative review of the anti-dumping duty had cut duty to 1.69 per cent from the initial level of 7.22 per cent.
The anti-dumping duty was imposed following a complaint by the Southern Shrimp Alliance, a coalition of shrimp business in eight States.