The US Customs & Border Protection (CBP) has withdrawn the customs enhanced bonding requirement (EBR) imposed on shrimp imports from Thailand and India in 2004, which will bring much relief to the exporters from these countries.

A notice from the CBP said that the existing bonds for seafood export would be terminated as of 1 April. The announcement, published on Wednesday in the Federal Register, is in line with a World Trade Organisation (WTO) ruling issued in favour of India and Thailand in 2008.

The US Department of Commerce (DoC) had reduced the anti-dumping duty on Indian shrimp to 0.79 per cent from 1.69 per cent during the first week of March.

But exporters previously had to pay an amount equal to USD 50,000, or 10 percent of the previous year's duties paid by an exporter, as per the US Customs order.

The EBR, added to the anti-dumping duties on shrimp imports, had hindered exports from both India and Thailand. Both countries had intensely opposed this levy, deeming it a protectionist measure and very much against global free trade practices.

Thailand had lodged a complaint with WTO against EBR in 2006, followed by similar complaints by India later that year. A dispute settlement panel was then appointed by WTO to look into the issue. Both countries argued that the imposition of the exorbitantly high EBR had breached several provisions of General Agreement on Tariffs and Trade (GATT) and the WTO agreement.

The WTO panel subsequently declared that EBR was against the provisions of WTO and GATT, and should be withdrawn.

The amount of Indian shrimp exporters to the US fell from 228 to 75 after the anti-dumping duties were imposed. Seafood Exporters Association of India (SEAI) expects shrimp exports to US to recover in the coming days.

"With the lowering of duty and withdrawal of bond, Indian shrimp can compete better in the global market," said national president of SEAI, Anwar Hashim.

By Michael Loubeteditorial@fis.com

Friday, April 03, 2009, 01:40 (GMT + 9)

Source: www.fis.com