CBP Says Shrimp Importer Evaded AD Duties

There is “substantial evidence” MSeafood used evasion to avoid antidumping duties on imported frozen shrimp, CBP said in an Oct. 13 final determination notice released by the Southern Shrimp Alliance (SSA). MSeafood, a U.S. importer affiliated with Vietnamese shrimp company Minh Phu Seafood, was accused of evading an AD order on frozen shrimp from India through transshipment by the Ad Hoc Shrimp Trade Enforcement Committee in 2019 (see 2001150041).

CBP said Minh Phu's “inability to trace specific imports of Indian-origin shrimp through the production facility to specific sales is problematic in that it is crucial to CBP’s understanding of whether co[m]mingling or mislabeling of Indian-origin shrimp was happening.” The agency also pointed to the lack of documentation from Minh Phu and MSeafood under the Seafood Import Monitoring Program. “SIMP requires traceability back to point of harvest of the shrimp, with records regarding the movement among and between each custodian of the shrimp up to the point of entry into U.S. customs territory,” it said. “However, the accuracy of Minh Phu’s SIMP documents are in question if they are unable to trace imported shrimp that has been processed through its production documents.”

The lack of tracing documentation leads to CBP applying an “adverse inference,” CBP said. “Since the record does not contain sufficient evidence to support how many imports to the United States contained co[m]mingled Indian-origin and Vietnamese-origin shrimp, CBP will select from the facts otherwise available and infer that the merchandise imported to the United States contained co[m]mingled Indian-origin and Vietnamese-origin shrimp,” it said. Based on the determination, “CBP will suspend or continue to suspend the entries subject to this investigation, until instructed to liquidate and require single transaction bonds as needed,” it said.

The SSA was pleased with the action. “For the last several years, CBP has quickly cracked down on efforts by U.S. shrimp importers to skirt the law,” John Williams, SSA executive director, said in a news release. “CBP’s announcement, once again, demonstrates this Administration’s commitment to the enforcement of our trade laws.” MSeafood's lawyer, Donald Cameron of Morris Manning, didn't comment.