Crawfish Import Tariffs Fail to Protect U.S. Producers

In 1997, antidumping tariffs ranging from 91 to 201 percent were imposed on imports of frozen (mostly Chinese) crawfish tail meat. Unfortunately, only a fraction of the total monetary assessment is getting back to Louisiana. U.S. Customs has been unable to collect millions of dollars in crawfish tariffs, according to recent reports from Customs and Border Protection.

Customs is successful in finding products which are labeled with the wrong country of origin or the wrong type of fish. But importers are frequently not paying their tariff bills – especially crawfish importers. Tariffs on crawfish tail meat go uncollected more often than those on any other commodity.

When a product with a tariff is imported, the importer must pay a partial duty set by the U.S. Department of Commerce. After the importer’s transactions are completed, the government computes a final assessment for the import and bills the company for the tariff balance. Too often, companies avoid payment by declaring bankruptcy, contesting the duty or simply disappearing. Some companies then re-form with different names and start the process all over again.

At least $69 million in crawfish duties went unpaid in 2003, and more than $33 million in duties were protested by importers. And the problem is getting worse. In 2004, $170 million in crawfish tariffs went unpaid.

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The following bills were passed during the regular session of the 2005 Louisiana Legislature. Acts will go into effect on Aug. 15, or at the specific time outlined in the bill.

House Bill 127 (Act 42) – Frith, Baldone and Romero
Defines theft of crawfish to include fraudulent practices as well as taking without consent. Provides penalties based on the value of crawfish involved.
* $500 or more – Up to 10 years imprisonment and a $3,000 fine
* $300 to 499 – Up to 2 years imprisonment and a $2,000 fine
* $299 or less – Up to 6 months imprisonment and a $500 fine. Repeat offenders may be imprisoned up to 2 years and fined up to $2,000.

House Bill 154 (Act 354) – Pitre, Baldone and Dupre
Prohibits towns of less than 25,000 people from passing laws that prevent fishermen or their employees from peddling seafood on the streets and in public places.

House Bill 238 (Act 206) – St. Germain
Allows 50 percent instead $50 from the sale of lifetime hunting and fishing licenses to be deposited in the Conservation Fund, with the rest going into the Lifetime License Endowment Trust Fund. Specifies how the money of the trust fund and undistributed return shall be invested in stocks, bonds, debentures, notes and other investments. No more than 35 percent can be in stocks.

House Bill 245 (Act 172) – T. Powell
Deletes the "crab trap on a trotline" recreational and commercial gear licenses. Increases the recreational crab trap gear fee from $10 to $15, with $5 being dedicated to the Derelict Crab Trap Removal Program Account. Increases the commercial crab trap gear fee from $25 to $35, with $5 being dedicated to the Derelict Crab Trap Removal Program Account, and $5 being dedicated to the Crab Promotion and Marketing Account within the Louisiana Seafood Promotion and Marketing Fund.

House Bill 752 (Act 102) – Dartez, St. Germain and Dupre
Increases the maximum fine for first offense of class four violations from $750 to $900, and decreases the maximum fine for second offense from $3,000 to $999. Trawling in closed season is a class four violation. Any person convicted of trawling during closed season twice in a five-year period is ineligible to hold a commercial or recreational trawl, butterfly or skimmer license for three years. Any person convicted three or more times shall be ineligible for such licenses for 10 years. Anyone ineligible to hold such licenses cannot be on board a boat or vessel that is shrimping, that possesses shrimp gear or that possesses shrimp unless the vessel has on board an operating vessel monitoring system that LDWF can monitor.

Criminal penalties were also added for trawling in closed season. For first offense, the violator's trawl, skimmer or butterfly net license may be revoked for one year and the violator sentenced to 40 hours of community service. For second offense, the licenses must be revoked for three years and the offender may be sentenced to serve community service instead of jail time. For the third or later offenses, the licenses must be revoked for 10 years and the violator may be sentenced to serve community service instead of jail time, except for 30 days. If litter abatement community service is available, the community service in the sentence must be served by picking up litter.

House Concurrent Resolution 85 – Jack Smith and St. Germain
Establishes the Wild-Caught Crawfish Task Force to advise the Louisiana Department of Wildlife and Fisheries on crawfish management, marketing and development of the wild-caught crawfish industry.

Senate Bill 224 (Act 133) – Hollis
Provides for allowing local outlets to sell and issue commercial fishing licenses and boat registrations similar to the way that recreational licenses are sold by local vendors. Effective upon signature by the governor.

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