The Chinese export community blasted a US verdict yesterday that is set to levy hefty anti-dumping duties on shrimp imports from China. It called the decision unfair and said it will hurt both Chinese producers and US consumers.
The US Department of Commerce published its final determination late on Tuesday that punitive duties ranging from 27.89 percent to 112.81 percent will be imposed on Chinese exports of frozen and canned warm-water shrimp.
Chinese shrimp companies are eligible for a separate rate if they can demonstrate their costs and prices are free from Chinese government subsidy.
The separate rate margin rose to 55.2 percent from the 49 percent set in the preliminary verdict.
"The verdict is unfair because the US government used unreasonably high prices from a substitute country in the investigation to measure the cost of Chinese producers," said Zhang Zhibiao, secretary general with the China Chamber of Commerce for Import and Export of foodstuffs, native produce and animal by-products.
"They also refused to use reasonable prices of a substitute proposed by the Chinese side," he said.
As China is not considered a market economy country by the United States, prices and costs of a substitute country will be used in determining anti-dumping cases.
A total of 57 Chinese shrimp producers - mostly in Guangdong and Zhejiang provinces - have been ruled as dumping shrimp in the US market at unfairly low prices.
Chinese shrimp exports to the US market involved in the case were valued at US$384 million, according to China's Ministry of Commerce.
A final ruling from the US International Trade Commission will be released next month to decide whether such imports have harmed the US domestic industry.
The ITC made a preliminary ruling on the case brought by the US Southern Shrimp Alliance. Penalty tariffs have been collected by border agents since July.
Domestic shrimp producers said shrimp exports to the United States have dropped drastically or even stopped.
"If the penalty margin is higher than 10 percent, we make no profits," said Qi Mingjun, an official with Zhejiang Zhoushan Cereals and Oils Imports and Exports Co Ltd.