The antidumping duty rates for Spanish ripe olives came in late last Friday and they are, unfortunately, quite high.
“The Department of Commerce preliminarily determines that ripe olives from Spain are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation is April 1, 2016, through March 31, 2017. “
Here are the estimated weighted-average dumping margins, together with the previously determined countervailing duty rates:
|AD duty rate
||CV duty rate
|Agro Sevilla Aceitunas S.COOP
|Angel Camacho Alimentación
These duty rates will go into effect on the day this ruling is published (later this week) in the Federal Register and importers on record will have to pay cash deposits to CBP after every entry, effective immediately.
The United States Antidumping Law and Practice allows that any exporter of the goods which are subject to that order request that Commerce conduct a review of the previous year’s imports, one year after publication of an antidumping order, as well as during each subsequent year. The purpose of these administrative annual reviews is to calculate and assess the exact amount by which the foreign market value exceeded the U.S. price of each importation during that year and to recalculate the estimated duty rate for deposits on future entries of the goods.
An administrative review is conducted in essentially the same manner as Commerce’s initial antidumping investigation, and generally must be completed within one year. Commerce will issue a questionnaire similar to that used in the original investigation and will calculate preliminary and final antidumping margins.
Depending on the new margin calculation an importer can receive a refund plus interest if the estimated duty deposit was too high or pay additional sum plus interest if the estimated duty previously paid was too low.
All species of tuna have been in short supply the past 6 months or so with prices climbing steadily. It seems as though there is no relief in sight now as landings of raw material are erratic and are not enough to meet demand. Skipjack raw material prices had fallen in certain producing markets during the first 3 weeks of January, which most likely are for small fish that have a lower yield. The season for higher catches is typically around April; therefore no one is expecting relief in pricing until May or June at the earliest.
- Chunk Light has increased steadily over the past 6 months and is now reaching the highest price in recent memory.
- Yellowfin, which was significantly cheaper than Tongol, is now almost the same cost.
- Tongol, the lightest of ‘light’ tuna, has been especially short and pricing reflects the short supply.
- Albacore is now in very short supply, and the issue isn’t always the high cost, it is also only available in limited quantities. Albacore is a completely sellers’ market and right now the demand is higher than the supply.
Pouch tuna fish is a viable option to canned tuna fish. Although typically more expensive than canned due to labor intensity, now it can be comparably priced. The reason for this is that pouch tuna is only packed with flakes, which is not as costly as chunks. Pouch tuna is an excellent alternative to canned for manufacturers as there is no draining required and the waste is significantly less because an empty pouch takes up less room than an empty can. Pouched tuna comes in Light and Albacore.
2017/2018 proves to be another tough season for mandarin oranges in China. Since the previous season was short, partially because the Chinese New Year started relatively early (January 28, 2017), and partially because of a short fruit crop, there was practically no carryover before the new season and buyers could hardly wait for the fresh production to begin.
If we thought that the situation could not be any worse than last year, we were wrong as this season seems to be quite a disaster. Raw material supply is short and a decrease in available labor in all packing areas, when compared to the previous year, forced factories to firm up their quotes to compensate for the decrease in production.
Packing mandarin orange segments is very labor intensive since every single fruit has to be peeled and segmented by hand and factories are unable to fill all shifts and all production lines with workers. It has been reported that the price of the raw material is still on the upward trend and offers for finished product, both retail and foodservice, are following the same path.
For this reason, many factories are reluctant to speculate and they only produce for firm orders that reflect the day’s raw material price and have prompt shipping dates. Even though Chinese New year is late this year (February 16, 2018), factories aren’t planning to pack mandarin oranges until that date like they used to because of the above reasons.
In addition, the Chinese currency (RMB or Yuan) has been steadily gaining value against the USD and reached its highest level since end 2015. The weak dollar, together with the higher cost of labor, sugar, tin plate and cardboard are all adding to the already firm market prices of canned mandarin oranges.
The results of the DOC’s preliminary investigation were published in the Federal Register on November 28, 2017.
The International Trade Commission has issued the following Fact Sheet for the interested parties to better understand the decision and to be aware of the timeline of the steps that will follow. At the same time the investigation into the antidumping case continues and a preliminary decision is expected to be reached on or around January 18, 2018.
- On November 21, 2017, the Department of Commerce (Commerce) announced the preliminary results of the countervailing duty (CVD) investigation of imports of ripe olives from Spain.
- The CVD law provides U.S. businesses and workers with a transparent, quasi-judicial, and internationally accepted mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.
- For the purpose of CVD investigations, a countervailable subsidy is financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.
- Commerce has calculated a preliminary subsidy rate of 2.31 percent for mandatory respondent, Aceitunas Guadalquivir S.L.U.; 2.47 percent for Agro Sevilla Aceitunas S.Coop.And.; and, 7.24 percent for Angel Camacho Alimentacion S.L.. All other producers/exporters in Spain have been assigned a preliminary subsidy rate of 4.47 percent.
- As a result of the preliminary affirmative determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to require cash deposits based on these preliminary rates.
- Commerce is scheduled to announce its final determination on or about April 4, 2018, unless the statutory deadline is extended.
- If Commerce makes an affirmative final determination, and the U.S. International Trade Commission (ITC) makes an affirmative final determination that imports of ripe olives from Spain materially injure, or threaten material injury to, the domestic industry, Commerce will issue a CVD order. If either Commerce’s or the ITC’s final determinations are negative, no CVD order will be issued. The ITC is scheduled to make its final injury determination approximately 45 days after Commerce issues its final determination, if affirmative.
PRELIMINARY SUBSIDY RATES: SPAIN
EXPORTER/PRODUCER SUBSIDY RATE:
Aceitunas Guadalquivir S.L.U.:
Agro Sevilla Aceitunas S.Coop.And.:
Angel Camacho Alimentacion S.L.:
CASE CALENDAR BY EVENT VS. CVD INVESTIGATION DATE:
Petition Filed: June 22, 2017
DOC Initiation Date: July 12, 2017
ITC Preliminary Determination*: August 11, 2017†
DOC Preliminary Determination**: November 20, 2017
DOC Final Determination**: April 3, 2018†
ITC Final Determination***: May 18, 2018
Issuance of Order****: May 25, 2018
NOTE: Commerce preliminary and final determination deadlines are governed by statute. For CVD investigations, the deadlines are set forth in sections 703(b) and 705(a)(1) of the Tariff Act of 1930, as amended (the Act). These deadlines may be extended under certain circumstances.
†Where the deadline falls on a weekend/holiday, the appropriate date is the next business day.
* If the ITC makes a negative preliminary determination of injury, the investigation is terminated.
**These deadlines may be extended under the governing statute.
***This will take place only in the event of a final affirmative determination from Commerce.
****This will take place only in the event of a final affirmative determination from Commerce and the ITC.
For months the market has been advancing for all species of tuna; Bonito, Skipjack, Yellowfin, Tongol, and Albacore. The main reason the market has been firm is that fishing hasn’t been good since there is a lack of raw material. To further exacerbate the problem, some countries such as Indonesia, have instituted fishing restrictions to help the fish population regenerate. It is now illegal to have carriage vessels transport fish from the ‘fishing’ vessels back to land, so the fishing vessels stay out at sea. The smaller fishing vessels can’t store enough fish on their boats to keep returning to land. Also, the declining fish population doesn’t swim as close to shore as they used to so boats now have to travel 100+ miles further to fish.
For some other oceans, a fishing ban (ending October 31st) has been implemented. Of course it makes sense to restrict fishing to help the population redevelop. We all want there to be enough fish for generations to come, but balancing supply and demand with social responsibility is a difficult business.
Skipjack raw material, which is the high volume industry standard, has been rising steadily throughout the year to now hover around $2,100/ton in Bangkok with no relief in sight. Typically around this time of year, it is a busy buying season for importers because they are purchasing their first quarter requirements. Due to higher prices and the shortage of fish, buying has been slow. Unfortunately, there is little doubt that the tuna market for all species will remain strong through at least January and we can expect to see some shortages along the way.