In 1997 the Louisiana Crawfish Processors Association filed suit in the World Court to stop Chinese crawfish tails from being dumped into the United States causing undue hardship for the State’s crawfish industry. It took years, but they eventually won. Crawfish being peeled in Lafayette. Photo: Ed Lallo/Gulf Seafood News
by Ed Lallo/Gulf Seafood News
In 1997 the Louisiana Crawfish Processors Association filed suit in the World Court to stop Chinese crawfish tails from being dumped into the United States causing undue hardship for the State’s crawfish industry. It took years, but they eventually won. Twenty-five years later a recently introduced bipartisan Senate bill is aimed to help the association recoup remaining funds owed.
Louisiana Senator Bill Cassidy, a Republican, has joined with Montana Democratic Jon Tester, as well as Chuck Grassley (R-IA), and John Thune (R-SD) to rectify the long wait endured crawfish processors for the final $10.6-million of the $110-million they were awarded they were awarded by Congress in 2006.
“This has been a long, complicated process involving not only the World Court, but also the U.S. Custom’s Department and the Department of Commerce,” said Frank Randol, a member of the 16 original members that took on the Chinese government. Photo: Ed Lallo/Gulf Seafood News
“This has been a long, complicated process involving not only the World Court, but also the U.S. Custom’s Department and the Department of Commerce,” said Frank Randol, a member of the 16 original members of the Louisiana Crawfish Processors Association (CPA) that took on the Chinese government in the World Court.
According to the Lafayette processor, the initial industry action started in 1997. “The World Court ruled in our favor to stop the dumping of frozen crawfish tails into the country. After we won in court, Homeland Security and the U.S. Customs Department determined the assessed tariff. The tariff money collected was then sent to government coffers overseen by the Department of Commerce. I told you it was complicated,” he said.
The crawfish processors decided to take on their Asian rivals when Chinese frozen tails were being sold at a cost below production value not be met by the state’s processors, causing companies in the industry to lose money or close.
From the time of the World Court win till 2006; nobody involved in the anti-dumping lawsuit received a red cent. It was then that West Virginia Democratic Senator Robert Bird introduced legislation to allow all affected companies producing claims for damages from anti-dumping to participate in the receiving funds from the tariffs collected by Customs and deposited into the Commerce general fund.
The Continued Dumping and Subsidy Offset Act, commonly known as the “Byrd Amendment,” provided for the distribution of import duties collected as a result of antidumping or countervailing duty orders to affected parties, including the Louisiana Crawfish Processors Association.
“The Byrd Amendment awarded the processors $110-million in damages,” Randol went on to explain. “During the following two years, until it was repealed in January of 2007, we were able to collect $100-million, leaving us owed $10-million. However the Customs had collected far more tariffs than were being paid, with that money earning interest as it set in Commerce coffers.”
The new legislation introduced by Sen. Cassidy and others, The China Trade Cheating Restitution Act, would direct Customs and Border Protection (CBP) to pay $38.5 million from the interest on anti-dumping duties received from Chinese imports to certain agricultural sectors harmed by Chinas illegal trade practices, including $10.6 million to the Louisiana Crawfish Processors Association.
“Crawfish is part of our culture in Louisiana and we will defend it,” said Sen. Cassidy. “China is attempting to put our crawfish farmers out of business dumping their product in the U.S. at prices below the cost of production. This is against the law.” Photo: Ed Lallo/Gulf Seafood News
According to Randol, the association that started with 16 charter members has grown to more than 30 member-processing plants. The distribution of the final $10.6-million from the new legislation introduced by Sen. Cassidy would be the result of decades of hard fought legislative and legal court actions.
Adam Johnson of Bayou Land Seafood in Breaux Bridge says the Louisiana crawfish processors have taken a beating from unfairly traded crawfish from China. “We are fortunate to have a Senator like Bill Cassidy who is willing to stand up for the industry”
“Crawfish is part of our culture in Louisiana and we will defend it,” said Sen. Cassidy. “China is attempting to put our crawfish farmers out of business dumping their product in the U.S. at prices below the cost of production. This is against the law. This legislation gives American farmers the resources they need to stay competitive and thrive.”In 2000 Congress passed the Continued Dumping and Subsidy Offset Act that instructed CBP to pay all collected anti-dumping duties and accrued interest to the U.S. producers injured by dumped imports.
Louisiana peeled crawfish ready to be frozen. Photo: Ed Lallo/Gulf Seafood News
The new bill would:
- Require CBP to distribute under CDSOA an estimated $35.6 million in accrued delinquency interest on the antidumping duties that CBP collected and wrongfully withheld
- Amend the Trade Facilitation and Trade Enforcement Act of 2015 to move the date of interest collected by the CBP to be dispersed from October 1, 2014 to October 1, 2000 to account for substantial interest withheld byCBP beginning in 2000
The Lafayette processor says the Chinese underestimated the tenacity of the CPA, “Winning took a collaborated effort that included a lot of time and money. All we are doing is asking Congress to finish paying us for what is rightfully ours.”
Visitor Comments