The United States Department of Commerce (DOC) recently announced a preliminary conclusion regarding the anti-subsidy investigation concerning frozen warm water shrimp originating in Vietnam. This development, disclosed by the Trade Remedies Authority of Vietnam (TRAV), signifies a significant step in a process initiated on November 14, 2023.

Background of the Investigation

The investigation was launched at the behest of the American Shrimp Processors Association, with the DOC conducting an extensive inquiry spanning from January 1, 2022, to December 31, 2022. Notably, two enterprises emerged as mandatory defendants due to their substantial export volumes to the United States during the investigative period.

After evaluating information provided by the Vietnamese Government, exporting businesses, and the US plaintiff, the DOC decided on preliminary anti-subsidy tax rates. While one mandatory defendant faces a 2.84% rate along with other firms, another, which withdrew from the investigation on January 4, 2024, is subject to a significantly higher rate of up to 196.41%.

Further Verification and Engagement

TRAV emphasized that the DOC will scrutinize information furnished by the Vietnamese Government and businesses to determine the final conclusion and official tax rates. Stakeholders have been urged to provide their comments on the preliminary conclusion within a specified timeline, with opportunities for subsequent feedback and requests for hearings.

The DOC is slated to unveil the final conclusion no later than August 5, with the US International Trade Commission (ITC) subsequently issuing the final verdict on damages within 45 days of the DOC’s determination. Notably, the DOC’s investigation encompasses approximately 50 programs/policies, marking it as the most extensive anti-subsidy inquiry into Vietnamese exports to date.

Recommendations and Outlook

TRAV underscored the importance for businesses to engage and cooperate with the DOC throughout the verification process. Stakeholders are encouraged to articulate their viewpoints and provide feedback on the preliminary conclusion, as these contributions will directly influence the final outcome.