SEAFOOD.COM NEWS [New Orleans CityBusiness] - April 27, 2007 - The Southern Shrimp Alliance Board of Directors has called for the immediate withdrawal by the Louisiana Shrimp Association of its request to the U.S. Department of Commerce for administrative reviews on hundreds of foreign companies that compete with the U.S. shrimp industry, according to Louisiana board member Cathy Blanchard.
LSA could delay more than $100 million for the U.S. shrimp industry from the Continued Dumping & Subsidy Offset Act while the reviews are completed. 'Any shrimper who received Byrd funds in 2006 should be outraged at LSA's actions because LSA is likely to prevent additional distributions this year,' said Blanchard, wife of shrimper Douglas Blanchard Jr.
'LSA's actions are incredibly dangerous and harmful to the entire industry.' More than $39.6 million was distributed to more than 500 Louisiana shrimp industry members last year and roughly $102.3 million was disbursed to the U.S. shrimp industry.
'The Louisiana Shrimp Association's ill-conceived and dangerous action threatens our industry at a crucial time when we are still recovering from the devastation of hurricanes Katrina and Rita,' said Cathy Blanchard. 'We urge the leadership of the Louisiana Shrimp Association to rethink this decision and immediately withdraw its requests so that Louisiana industry can receive much needed assistance.'
The LSA filed administrative review requests Feb. 28 with the U.S. Department of Commerce for hundreds of companies. Importers of shrimp products subject to the antidumping orders deposit estimated antidumping duties when bringing in shrimp. Once a year, parties can request an administrative review before the U.S. Department of Commerce which may increase or decrease the amount of duties owed.
If no review is requested, the deposit rate becomes the rate duties are assessed. Only collected antidumping duties are distributed through CDSOA. If an administrative review is requested, antidumping duties cannot be assessed and collected until, at a minimum, the administrative review process is completed, which can take between 12 and 18 months.
Administrative review results can also be appealed, further delaying assessment and collection.
'The LSA's actions are disastrous because they will delay millions of dollars of Byrd Amendment funds to the U.S. shrimp industry this year and it could also eliminate or decrease the antidumping duty rates in place to offset unfair trade,' Blanchard said. Most shrimp imports entering the United States during the first administrative review period were not subject to the administrative reviews and were eligible for immediate assessment and collection of antidumping duties.
The Southern Shrimp Alliance, founded in 2002, is a nonprofit alliance of members of the shrimp industry in eight states committed to promoting the domestic shrimp industry in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Texas.
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