The US Department of Commerce (DOC) has taken steps to preliminarily reduce the anti-subsidy tax (CVD) concerning the importation of frozen warm water shrimp from Ecuador. This decision aims to adjust the rates applied to specific Ecuadorian shrimp importers.

Reduction in CVD Rates

On April 19, 2024, DOC officials announced their decision to lower the CVD rate for Santa Priscila shrimp importers significantly. The rate will be decreased from 13.41% to 2.89%. Additionally, the Sociedad Nacional de Galapagos (SONGA) will maintain its CVD rate at 1.69%. Notably, DOC clarified that due to SONGA’s rate falling below the 2% threshold, it meets the “de minimis” rule, exempting shrimp imported from SONGA from any deposit requirements.

With these adjustments, shrimp imported from other Ecuadorian companies will now face a reduced CVD rate of 2.89%, as opposed to the previously announced preliminary rate of 7.55%.

Final Decision and Timeline

The final determination regarding the CVD rate is expected to be announced by the DOC before August 5, 2024. This date coincides with the final decision on the anti-dumping tax concerning imported shrimp from both Ecuador and Indonesia.