On August 13, 2013, the US Department of Commerce (Commerce) announced its affirmative final determinations in the countervailing duty investigations of imports of certain frozen warmwater shrimp from Ecuador, India, Malaysia, China and Vietnam; and negative final determinations of imports from Indonesia and Thailand.

Mayer Brown and JWK Law Office as legal counsel together with the Indonesian government, the two Indonesian mandatory respondents PT Central Pertiwi Bahari and PT First Marine Seafoods have successfully demonstrated that the 22 subsidy programs alleged by COGSI were unsubstantiated, resulting in final de minimis CVD margins that were even lower than the preliminary CVD margins announced. Commerce determined that the two respondents, PT. Central Pertiwi Bahari and PT. First Marine Seafoods, received subsidy rates of only 0.23% and 0.27%, respectively. The final negative determination applies to the country as a whole.

Thus, Indonesia is the only country that is not subject for both US antidumping and countervailing duties on shrimpy. As shrimp are one of Indonesia’s major fishery products exported to the United States, Indonesia must take advantage of this situation wisely to reduce its trade deficit with the United States. Indonesia should keep on monitoring its exports to avoid any potential dumping and circumvention allegation since Indonesia will become the center of attention of the US shrimp market.

In the final determination, Commerce reversed its preliminary findings by subjecting Ecuadorian two respondents, Promarisco S.A. and Sociedad Nacional de Galapagos C.A., with subsidy rates of 13.51% and 10.13%, respectively. All other producers/exporters in Ecuador have been assigned a subsidy rate of 11.68%. This is in contradiction with its preliminary decision to find de minimis subsidy rate for all Ecuadorian mandatory respondents.

Similar but rather in the contrary situation also happens to the Thai investigation. Commerce determined that the two respondents, Marine Gold Products Ltd. and Thai Union Frozen Products Public Co. Ltd. received subsidy rates of 1.52% and 1.41%, respectively. These rates are de minimis, resulting in a final negative determination that applies to the country as a whole which is different with the preliminary affirmative subsidy rate.

In the China investigation, Commerce determined that the sole respondent, Zhanjiang Guolian Aquatic Products Co., Ltd. and its cross-owned affiliates, received a subsidy rate of 18.16%. All other producers/exporters in China have also been assigned a subsidy rate of 18.16%.

In the India investigation, Commerce determined that the two respondents, Devi Fisheries Limited and Devi Seafoods Ltd., received subsidy rates of 10.54% and 11.14%, respectively. All other producers/exporters in India have been assigned a subsidy rate of 10.84%.

In the Malaysia investigation, Commerce determined that the two respondents, Asia Aquaculture Sdn. Bhd. and its cross-owned affiliates Star Feedmills Sdn. Bhd. and Charoen Pokphand Foods (Malaysia) Sdn. Bhd. and Kian Huat Aquaculture U.S. Department of Commerce International Trade Administration Sdn. Bhd., received subsidy rates of 10.80% and 54.50%, respectively. All other producers/exporters in Malaysia have been assigned a subsidy rate of 54.50%.

In the Vietnam investigation, Commerce determined that the two respondents, Minh Qui Seafoods Co. Ltd and Nha Trang Seaproduct Company, received subsidy rates of 7.88% and 1.15%, respectively. All other producers/exporters in Vietnam have been assigned a subsidy rate of 4.52%.

The final CVD order will have to wait for the US International Trade Commission (“ITC”) final determination whether or not to find material injury and causal link of the domestic industry. The ITC is scheduled to make its final injury determinations on September 19, 2013. If the ITC makes affirmative final determinations that imports of certain frozen warmwater shrimp from China, Ecuador, India, Malaysia and/or Vietnam materially injure, or threaten material injury to, the domestic industry, Commerce will issue CVD orders. If the ITC makes negative determinations of injury for China, Ecuador, India, Malaysia and/or Vietnam, the investigations will be terminated. Regardless of the ITC’s final determination, the investigations of Indonesia and Thailand will be terminated.

The preliminary and final CVD rates can be seen in the following table.

In short, this is a complete and absolute victory for the Indonesian shrimp industry. Through hard work, cooperation, and an attention to detail, the lawyers, Indonesian government and the two mandatory Indonesian respondents have secured a significant competitive advantage for the entire Indonesian shrimp industry.