The US Department of Commerce last week announced a final rate of 3.18 per cent, against the preliminary rate of 6.09 per cent previously under consideration. However, Thai shrimp exporters are subject to different duty levels depending on the evidence submitted during the US investigation.
Thai Union Frozen Products now enjoys a final rate of 2.85 per cent, much lower than its preliminary rate of 15.3 per cent. This should boost the company's shrimp sales to the United States, and also help group sales (including other products) surpass US$2 billion (Bt68.7 billion) this year.
TUF will also benefit from a refund of $2.6 million from the US authorities, which is the difference between the 2.85 per cent now charged and the 5.95 per cent it has been paying.
The 2.85-per-cent levy will serve as a new reference rate for TUF's shrimp exports to the US until the announcement of the next annual review - probably next September.
Thiraphong Chansiri, president of the company, said yesterday the final anti-dumping rate for its shrimp represented a huge cut from the preliminary rate, as well as being lower than the previous anti-dumping levy of 5.95 per cent on Thai shrimp.
The new industry rate of 3.18 per cent was calculated by averaging the individual rates applicable to the four Thai mandatory respondents in the department's investigation. "The new final anti-dumping rate will also help to reduce the burden of the continuous bond on our shrimp exports to the United States. Shrimp sales grew 31 per cent in the first half this year," Thiraphong said.
Charoen Pokphand Foods, which is subject to the 3.18-per-cent levy, said the cut should lead to overall shrimp exports of 40,000 tonnes to all markets this year. The company reported 34,000 tonnes of shrimp exports last year.
Adirek Sripratak, president and CEO of the company, said the US rate revision would strengthen Thai export competitiveness in the market.
It is now expected that the Kingdom's overall shrimp exports will hit 350,000 tonnes worth Bt80 billion this year, an increase of 15 per cent, he said.
The Nation, September 2, 2008