New Antidumping Duty and Countervailing Duty Petitions on Frozen Warmwater Shrimp From Ecuador, India, Indonesia and Vietnam

At a Glance

• The American Shrimp Processors Association filed antidumping duty petitions on frozen warmwater shrimp from Ecuador and Indonesia, and countervailing duty petitions on frozen warmwater shrimp from Ecuador, India, Indonesia and Vietnam.
• Investigations related to these petitions could lead to increased prices and/or decreased supply of frozen warmwater shrimp.
• The U.S. Department of Commerce is expected to begin investigations on November 14.

On October 26, 2023, the American Shrimp Processors Association filed antidumping duty (AD) petitions on frozen warmwater shrimp from Ecuador and Indonesia, and countervailing duty (CVD) petitions on frozen warmwater shrimp from Ecuador, India, Indonesia and Vietnam.

The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports that are sold in the United States with the benefit of foreign government subsidies. For AD/CVD duties to be imposed, the U.S. government must determine not only that dumping and/or subsidization is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped and/or subsidized imports. Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing supply of frozen warmwater shrimp from Ecuador, India, Indonesia and Vietnam.

Scope

Per the Petition

The scope of these investigations includes certain frozen warmwater shrimp and prawns whether wild-caught (ocean harvested) or farm-raised (produced by aquaculture), head-on or head-off, shell-on or peeled, tail-on or tail-off, deveined or not deveined, cooked or raw, or otherwise processed in frozen form.

The frozen warmwater shrimp and prawn products included in the scope, regardless of definitions in the Harmonized Tariff Schedule of the United States (HTSUS), are products which are processed from warmwater shrimp and prawns through freezing and which are sold in any count size.

The products described above may be processed from any species of warmwater shrimp and prawns. Warmwater shrimp and prawns are generally classified in, but are not limited to, the Penaeidae family. Some examples of the farmed and wild-caught warmwater species include, but are not limited to, whiteleg shrimp (Penaeus vannemei), banana prawn (Penaeus merguiensis), fleshy prawn (Penaeus chinensis), giant river prawn (Macrobrachium rosenbergii), giant tiger prawn (Penaeus monodon), redspotted shrimp (Penaeus brasiliensis), southern brown shrimp (Penaeus subtilis), southern pink shrimp (Penaeus notialis), southern rough shrimp (Trachypenaeus curvirostris), southern white shrimp (Penaeus schmitti), blue shrimp (Penaeus stylirostris), western white shrimp (Penaeus occidentalis), and Indian white prawn (Penaeus indicus).

Frozen shrimp and prawns that are packed with marinade, spices or sauce are included in the scope. In addition, food preparations, which are not “prepared meals,” that contain more than 20 percent by weight of shrimp or prawn are also included in the scope.

Excluded from the scope are: (1) breaded shrimp and prawns (HTSUS subheading 1605.20.10.20); (2) shrimp and prawns generally classified in the Pandalidae family and commonly referred to as coldwater shrimp, in any state of processing; (3) fresh shrimp and prawns whether shell-on or peeled (HTSUS subheadings 0306.36.0020 and 0306.36.0040); (4) shrimp and prawns in prepared meals (HTSUS subheading 1605.20.05.10); (5) dried shrimp and prawns; (6) canned warmwater shrimp and prawns (HTSUS subheading 1605.20.10.40); and (7) certain battered shrimp. Battered shrimp is a shrimp-based product: (1) that is produced from fresh (or thawed-from-frozen) and peeled shrimp; (2) to which a “dusting” layer of rice or wheat flour of at least 95 percent purity has been applied; (3) with the entire surface of the shrimp flesh thoroughly and evenly coated with the flour; (4) with the non-shrimp content of the end product constituting between four and ten percent of the product’s total weight after being dusted, but prior to being frozen; and (5) that is subjected to IQF freezing immediately after application of the dusting layer. When dusted in accordance with the definition of dusting above, the battered shrimp product is also coated with a wet viscous layer containing egg and/or milk, and pan-fried.

The products covered by the scope are currently classified under the following HTSUS subheadings: 0306.17.0004, 0306.17.0005, 0306.17.0007, 0306.17.0008, 0306.17.0010, 0306.17.0011, 0306.17.0013, 0306.17.0014, 0306.17.0016, 0306.17.0017, 0306.17.0019, 0306.17.0020, 0306.17.0022, 0306.17.0023, 0306.17.0025, 0306.17.0026, 0306.17.0028, 0306.17.0029, 0306.17.0041, 0306.17.0042, 1605.21.1030, and 1605.29.1010. These HTSUS subheadings are provided for convenience and for customs purposes only and are not dispositive, but rather the written description of the scope is dispositive.

Estimated Dumping Margins

The Petitioner alleges a dumping for Ecuador of up to 11.4%, and a dumping margin for Indonesia of up to 37.36%.

The Petitioner also alleges significant subsidies with respect to Ecuador, India, Indonesia and Vietnam, although the petition does not quantify the alleged net subsidy margins.

Estimated Schedule of Investigations

The following is an estimated schedule of investigations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC):

• October 25, 2023: Petitions are filed.
• November 14, 2023: DOC initiates investigations.
• November 15, 2023: ITC staff conference (estimated).
• December 11, 2023: Deadline for ITC preliminary injury determination.
• January 18, 2024: Deadline for DOC preliminary CVD determinations, if deadlines are NOT postponed.
• March 23, 2024: Deadline for DOC preliminary CVD determinations, if deadlines are fully postponed.
• April 2, 2024: Deadline for DOC preliminary AD determinations, if deadlines are NOT postponed.
• May 24, 2024: Deadline for DOC preliminary AD determinations, if deadlines are fully postponed.
• October 6, 2024: Deadline for DOC final AD and CVD determinations, if all deadlines are fully postponed.
• November 20, 2024: Deadline for ITC final injury determination, if all DOC deadlines are fully postponed.