ISLAMABAD, May 28: The European Commission (EC) is investigating alleged dumping of ethyl alcohol into European Union (EU) member countries by exporters from Pakistan. Well-placed sources told Dawn on Saturday that the EC had notified the investigation on the plea that surge in the export of ethyl alcohol into EU countries was damaging their local industries.

The EC had notified seven Pakistani exporters for sampling of investigation, added the sources. This would be the third initiation of anti-dumping case against Pakistan during the last three years— bed line followed by gatron and now ethyl alcohol. The EU, however, later withdrew the anti-dumping case against gatron.

The EC was empowered under anti-dumping duties ordinance, 2000, to carry out investigation and, if final determination of dumping and injury was made, impose appropriate anti-dumping duty on Pakistani ethyl alcohol.

As per the procedures laid down in the ordinance and anti-dumping duties rules, 2001, the EC for the purposes of gathering information had sent questionnaires to be filled in by the seven identified exporters of the investigated product and sent them back within 37 days.

After the receiving of information through questionnaire from these parties and examined by the EC, the commission was expected to make preliminary determination. Ethyl alcohol was exempted from customs duty under the EU generalized system of preferences (GSP) scheme, which was blamed for the rising export of the product to EU member countries.

The sources said that ministry of commerce had invited all the seven exporters for a meeting on Monday to devise a plan to provide all information sought by the EU. According to un-official figures, the export of ethyl alcohol increased to 50,000 tons this year from 15,000 tons last year.