Vietnam hopes its catfish exports to the US will enjoy a zero tax rate when the US announces the results of the POR14, slated for April 20.
Vietnam hopes its catfish exports to the US will enjoy a zero tax rate when the US announces the results of the POR14, slated for April 20.
Vietnam is a big catfish exporter
The US Department of Commerce (DoC) recently announced the preliminary results of the POR13 administration review, saying that Fimex Vietnam and Nha Trang Seaproduct Company did not dump frozen warm-water shrimp exports in the US in the period from February 1, 2017 to January 31, 2018.
DOC set the preliminary anti-dumping duty of zero percent on the products from the two companies. The other 29 companies which have applied for determination of different tax rates or have pledged no shipments to the US within this period will also enjoy the duty of zero percent.
The information is good news not only for Vietnam’s shrimp exporters, but also for catfish companies which hope for the same decision.
Catfish exporters are holding their breath awaiting the official results of the POR14 review which DOC will announce on April 20. The tax rates will determine their business performance this year.
The anti-dumping tariff is considered twice by the US DOC, in the preliminary (Q3) and official reviews (early next year). Prior to that, two compulsory defendants were taxed 0.00 per kilogram and $1.37 per kilogram. The rate of $0.41 per kilogram was imposed on voluntary defendants, and the country’s tax rate was $2.39 per kilogram.
The preliminary tax rates were much lower than the previous POR13.
Vietnam’s leading catfish exporters including Bien Dong, Hung Vuong, Cadovimex, Hoang Long and Go Dang are expecting good news from the official POR14. The administration review result will be an important factor for Hung Vuong to re-plan its long-term business strategy.
Hung Vuong’s CEO and chair Duong Ngoc Minh said the company had spent $2 million on the POR14 review and the results will ‘determine Hung Vuong’s fate’.
If Vietnam’s exporters can enjoy low anti-dumping duties, they will have opportunities to increase exports to the US, the major export market for Vietnam’s seafood products.
In 2018, when the US announced the results of POR13, nearly all Vietnamese companies, except Vinh Hoan and Bien Dong, were subjected to very high tax rates. The tax rates for the two companies were zero and 19 cent per kilogram, respectively.
Nine of the companies bore tax of $3.87 per kilogram or higher, the highest tax rates so far imposed on catfish. Cadovimex II Seafoods and Hoang Long Seafood were taxed $7.74 per kilogram.
As a result of the high duty, Go Dang JSC, a compulsory defendant in POR13 with the duty of $3.87 per kilogram, had to stop exporting its products to the US and shifted to the European and Chinese markets.
