USTR Seeks Comments on WTO Dispute Regarding Continuous Bonds in the U.S.' Antidumping Order on Shrimp from India
The Office of the U.S. Trade Representative (USTR) has issued a notice announcing that India has requested the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP), regarding the U.S.' antidumping (AD) duty order on certain frozen warmwater shrimp from India.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The USTR states that it invites written comments from the public concerning the issues raised in this dispute. To be assured of timely consideration, comments should be submitted on or before February 28, 2007.
India Contests "High Value" Continuous Bond Requirement, Etc.
According to the USTR, in its request for a DSP, India alleges, among other things, that the U.S. has imposed on importers of shrimp from India a requirement to maintain a continuous entry bond in the amount of the applicable antidumping AD duty margin multiplied by the value of shrimp imported by the importer in the preceding year, and that the imposition of the continuous bond requirement is not in accordance with certain provisions of the General Agreement on Tariffs and Trade (GATT), as well as certain provisions of the Agreement on Implementation of Article VI on Tariffs and Trade (AD Agreement) and the Agreement on Subsidies and Countervailing Measures (Subsidies Agreement).
India further alleges that the continuous bond requirement is inconsistent with certain provisions of the AD and Subsidies Agreements as they are applied prior to the imposition of definitive AD or countervailing (CV) duties.
India Also Contests Use of Customs Bond Directive 099 3510-004
India is also alleging that use of U.S. Customs Bond Directive 099 3510-004 on continuous bonds, as amended on July 9, 2004 (and any amendments and clarifications thereof), is inconsistent with the GATT and AD Agreement as the directive was not published in the Federal Register or the U.S. Customs Bulletin.
In addition, India alleges that the amended bond directive is inconsistent with GATT because it acts as a restriction other than a duty, tax or other charge; it is applied in a discriminatory manner; and is a charge in excess of that imposed or mandatorily required by legislation on the date of entry into force of the GATT. (See ITT's Online Archives or 07/13/04, 08/15/05, and 11/01/06 news, 04071305, 05081505, and 06110105, for BP summary of CBP's amended Customs Directive 099 3510-004, its later modifications, and CBP's notice providing information on how CBP is currently implementing its process for increasing importers' continuous bonds, respectively.)
India also alleges that the application of the continuous bond requirement only to importers of subject merchandise from India and five other countries is inconsistent with certain provisions of the GATT.
(See ITT's Online Archives or 10/17/06 news, 06101715, for BP's summary of Thailand's request for a DSP, in which Thailand raises some of the same issues as India.)
The USTR notes that a WTO panel has been requested and will hold its meetings in Geneva, Switzerland.
- to be assured of timely consideration, written comments should be submitted on or before February 28, 2007
(See ITT's Online Archives or 08/09/06 news, 06080920, for BP summary of the USTR's earlier notice on India's request for WTO consultations on this issue.)
USTR Contact - Elissa Alben (202) 395-9622
USTR Notice (D/N WTO/DS345, FR Pub 12/27/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-22185.pdf
WTO U.S. Shrimp Dispute Settlement History (DS345, updated as of 10/09/06) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds345_e.htm