EU reduces dumping duty to 5.8 per cent: Bedlinen imports
By Parvaiz Ishfaq Rana
KARACHI, March 17: Majority of the 25 members of European Union (EU) have given their consent in favour of a further cut in anti-dumping duty on imports of bedlinen from Pakistan.
The voting took place late Thursday evening and according to a message from Brussels, 14 member states voted in favour of reduction as proposed in the final disclosure of the partial review announced in the third week of last month by the European Commission (EC).
The EC imposed punitive duty of 13.1 per cent in early 2004, but on the intervention of Commerce Minister Humayun Akhtar it was immediately put for a partial review by the commission.
Subsequently, the commission sent a team to Dubai for completing the investigations left half-way during their visit to Pakistan owing to the security problem.
All sample companies were asked to carry their records and relevant documents to Dubai needed to evaluate the level of injury, if any, caused to the European textile industry, represented by Eurocoton.
The EU member states voting in favour of a further cut in anti-dumping duty to 5.8 per cent will further give relief to the bedwear industry which had been lately under tremendous pressure and was suffering huge losses.
“I would say that all credit goes to the commerce minister for seeking a partial review which resulted in substantial reduction of punitive duty from 13.1 per cent to 5.8 per cent,” observed Shabir Ahmed, Chairman Pakistan Bedwear Exporters Association (PBEA).
As a result of this decision the national average of punitive duty will be lowered by another 1.8 percentage point to 5.8 per cent, while individual cooperative and sample companies have been also given some further cut in the duty. The meeting, which was to be held on March 9, 2006, was postponed for a week. However, Thursday’s meeting has brought good results for Pakistani bedlinen exporters.
In the first disclosure of the interim review, the EC had proposed cutting down of punitive duty from 13.1 per cent to 9.9 per cent. However, Pakistan again took up the matter at all forums with the EU and strongly pleaded for a total withdrawal of duty as Pakistan badly needed employment opportunities for workers affected by October 8 earthquake.
Consequently, the EC in its second interim review further cut the duty rate to 7.6 per cent after finding that the dumping margins were still lower than the injury level to its domestic textile industry.
As a result of this decision the eight sample companies, selected for investigation, are also going to benefit. These companies contribute 31 per cent to the total bedlinen exports to the EU.
Therefore, as suggested in the final disclosure by the EC and approved by the EU member states on Thursday, this would mean that the companies, which were investigated will also benefit. These textile firms include, Gul Ahmed Textile- 5.60 per cent from 6.8 per cent of second disclosure; Nishat Mills- 6.1 per cent (9.5 per cent); Al-Abid- 3.9 per cent (3.5 per cent); Mohammad Farooq Textile- 3.5 per cent (3.5 per cent); Younus Textile-8.5 per cent (8.5 per cent); Chenab-5.7 per cent (12.7 per cent); Lucky-7.2 per cent (8.8 per cent); and Fair Deal-will continue to enjoy zero duty.
Besides, exports of all categories from Pakistan are also enjoying customs duty reduction of 2.5 per cent at 9.5 per cent ever since the implementation of the new GSP rules from the beginning of this year.
“Strong lobbying by the commerce minister has won Pakistani exporters some margin to survive in the ever-increasing competition abroad and high cost of production at home,” commented a textile exporter.
