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July 30, 2015

China/Vietnam

Smuggling Slows Down

 

The rising risk of smuggling shrimp into China via the port of Haiphong in the northern Vietnam has reduced the illegal trade.  More and more rules are making it harder and harder to cross the border without getting caught.  It is still possible to ship product to Haiphong from China, but the increased costs driven by the higher risks mean fewer players are prepared to take the chance of getting caught.

 

Smugglers ship through Haiphong to avoid import duties and value-added taxes.  Some of the smuggled product goes to the domestic market and some goes to Chinese processors who export it as a product of China, collecting an export subsidy in the process, if the shrimp is for re-processing.

 

Jose Bolivar Martinez, owner of Farallon Aquaculture, a Panama-based company with shrimp hatcheries and farms in Central and South America, said it is difficult to get a clear picture of global supplies because shrimp from Ecuador, Indonesia and India gets processed in Thailand or Vietnam.  It is not clear if this shrimp is re-processed for export, or consumed domestically.  “This double counting is making importers in the USA and in Europe think that there is a surplus of production, when in reality there isn’t,” said Martinez.

 

In Central America and Mexico all countries have EMS, no matter what the authorities find or recognize publicly.  ...Ecuador, Central Americans and Mexicans are afraid of the financial considerations on their credit lines on the bad news,” Martinez said.

 

Source: Undercurrent News [eight free news reads every month].  Editor, Tom Seaman. Risk of China Shrimp Sales via Haiphong Outweighing Reward.  Tom Seaman  (undercurrent@undercurrentnews.com).  July 28, 2015.

 

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