KARACHI, Jan 18: South Africa has withdrawn countervailing duty of 6.14 per cent imposed five years ago on bedlinen imports from Pakistan. As the South Africa’s textile industry did not apply for a review of the duty imposed on December 27, 2001, it was decided in principle to withdraw the same from December 28, 2006, says a message received from Trade Commission of Pakistan in Johannesburg.

The International Trade Administration Commission (ITAC) of South Africa informed the Pakistani authorities that the local industry, the Southern African Customs Union (SACU) and Textile Federation of South Africa (TFSA), did not file a review petition for the continuation of countervailing duty on bedlinen imports from Pakistan.

On a complaint from SACU and the ITAC South Africa imposed 6.14 per cent countervailing duty on printed and dyed bedlinen carrying HS codes 6302.21, 6302.22, 6302.29, 63002.31, 630232 and 6302.39.

The decision to withdraw duty had been ratified by the minister of trade and industry of South Africa and a final notice will soon be published in the gazette by the South African Revenue Service (SARS).

Pakistan has also decided to file a case with WTO Dispute Settlement Commission in Geneva against the European Union’s (EU) Generalised System of Preferences (GSP) Plus scheme and the anti-dumping duty imposed in 2004, as disclosed by Commerce Minister Humayun Akhtar Khan last week.

The minister said that Pakistan had been subjected to a ‘chain investigation’ into dumping of bedlinen in EU member states and this was totally wrong and stood against the free market norms.

India had moved the WTO dispute forum in 1992-93 over the punitive duty on its bedlinen imports to EU and won the case, which also benefited Pakistan who did not file a case at that time.

The discriminatory GSP Plus scheme, which has put Pakistan’s imports to the EU at a disadvantageous position as they are subjected to 13 to 23 per cent customs duty whereas its competitors from Bangladesh and Sri Lank enjoy duty free imports under the scheme.

Pakistan has criticised the scheme under which similarly situated countries are treated differently in current GSP Plus criterion.