Frozen Warmwater Shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam
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Frozen Warmwater Shrimp From China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam Investigation Nos. 701-TA-491-497 (Preliminary) Publication 4380 February 2013 U.S. International Trade Commission Washington, DC 20436 U.S. International Trade Commission COMMISSIONERS Irving A. Williamson, Chairman Daniel R. Pearson Shara L. Aranoff Dean A. Pinkert David S. Johanson Meredith M. Broadbent Robert B. Koopman Director, Office of Operations Staff assigned Amy Sherman, Investigator Fred Ruggles, Investigator Renee Berry, Industry Analyst Amelia Preece, Economist David Boyland, Accountant Robin Turner, Attorney Elizabeth Haines, Supervisory Investigator Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 U.S. International Trade Commission Washington, DC 20436 www.usitc.gov Frozen Warmwater Shrimp From China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam Investigation Nos. 701-TA-491-497 (Preliminary) Publication 4380 February 2013 CONTENTS Page Determination . 1 Views of the Commission . 3 Dissenting Views of Commissioner Daniel R. Pearson ................................. 31 Part I: Introduction ............................................................ I-1 Background .................................................................. I-1 Statutory criteria and organization of the report...................................... I-1 Statutory criteria ........................................................... I-1 Organization of the report.................................................... I-2 U.S. Market summary.......................................................... I-2 Summary data and data sources .................................................. I-3 Previous and related investigations................................................ I-3 Nature and extent of alleged subsidies............................................. I-4 Alleged subsidies ............................................................. I-4 The subject merchandise........................................................ I-9 Commerce’s scope.......................................................... I-9 Tariff treatment ............................................................ I-10 The product .................................................................. I-10 Description and applications .................................................. I-10 Production process .......................................................... I-11 Domestic like product issues .................................................... I-14 Part II: Conditions of competition in the U.S. market ................................ II-1 U.S. Market characteristics...................................................... II-1 Channels of distribution........................................................ II-1 Geographic distribution ........................................................ II-3 Supply and demand considerations ................................................ II-3 U.S. supply ............................................................... II-3 U.S. demand .............................................................. II-9 Substitutability issues .......................................................... II-11 Factors affecting purchasing decisions .......................................... II-11 Comparison of domestic products, subject imports, and nonsubject imports ............. II-11 Part III: U.S. processors’ production, shipments, and employment ..................... III-1 U.S. processors ............................................................... III-1 U.S. capacity, production, and capacity utilization ................................... III-5 Constraints on capacity...................................................... III-5 Freezing capacity ........................................................... III-6 U.S. processors’ shipments ...................................................... III-7 U.S. processors’ inventories ..................................................... III-8 U.S. processors’ imports and purchases ............................................ III-9 U.S. employment, wages, and productivity ......................................... III-9 i CONTENTS Page Part IV: U.S. imports, apparent consumption, and market shares ...................... IV-1 U.S. importers................................................................ IV-1 U.S. imports ................................................................. IV-4 Negligibility ................................................................. IV-7 Cumulation considerations...................................................... IV-8 Apparent U.S. consumption ..................................................... IV-8 U.S. market shares ............................................................ IV-12 Ratio of imports to U.S. production ............................................... IV-14 Part V: Pricing data ............................................................ V-1 Factors affecting price ......................................................... V-1 Production costs ............................................................ V-1 U.S. inland transportation costs................................................ V-1 Pricing practices.............................................................. V-2 Pricing methods ............................................................ V-2 Sales terms and discounts .................................................... V-2 Price data ................................................................... V-2 Price trends ............................................................... V-12 Nonsubject prices .......................................................... V-14 Lost revenues and lost sales ..................................................... V-16 Part VI: Financial experience of U.S. processors’ .................................... VI-1 Background .................................................................. VI-1 Processing operations on frozen warmwater shrimp .................................. VI-1 Capital and investment......................................................... VI-6 Capital expenditures........................................................... VI-6 Part VII: Threat considerations and information on nonsubject countries ............... VII-1 The industry in China .......................................................... VII-1 The industry in Ecuador ........................................................ VII-1 The industry in India ........................................................... VII-3 The industry in Indonesia ....................................................... VII-4 The industry in Malaysia ....................................................... VII-5 The industry in Thailand ........................................................ VII-5 The industry in Vietnam ........................................................ VII-5 The seven subject countries ..................................................... VII-7 U.S. inventories of frozen warmwater shrimp from subject countries ..................... VII-9 U.S. importers’ current orders ................................................... VII-9 Antidumping investigations in third-country markets ................................. VII-9 Information on nonsubject countries .............................................. VII-10 Global market ............................................................. VII-10 ii CONTENTS Page Appendixes A. Federal Register notices........................................................ A-1 B. Conference witnesses .......................................................... B-1 C.Summary data................................................................ C-1 D. Tariff treatment .............................................................. D-1 E. U.S. Fishermen data........................................................... E-1 F. Alleged effects of imports on U.S. processors’ existing development and production efforts, growth, investment. and ability to raise capital ................................................ F-1 G. Alleged effects of imports on U.S. fishermen’s existing development and harvesting efforts, growth, investment, and ability to raise capital ............................................. G-1 Note.--Information that would reveal confidential operations of individual concerns may not be published and therefore has been deleted from this report. Such deletions are indicated by asterisks. iii UNITED STATES INTERNATIONAL TRADE COMMISSION Investigation Nos. 701-TA-491-497 (Preliminary) FROZEN WARMWATER SHRIMP FROM CHINA, ECUADOR, INDIA, INDONESIA, MALAYSIA, THAILAND, AND VIETNAM DETERMINATION On the basis of the record1 developed in the subject investigations, the United States International Trade Commission (Commission) determines, pursuant to section 703(a) of the Tariff Act of 1930 (19 U.S.C. ' 1671b(a)) (the Act), that there is a reasonable indication that an industry in the United States is materially injured by reason of imports from China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam of frozen warmwater shrimp, provided for in subheadings 0306.17.00, 1605.21.10 and 1605.29.10 of the Harmonized Tariff Schedule of the United States, that are alleged to be subsidized by the Governments of China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam.2 Pursuant to section 207.18 of the Commission=s rules, the Commission