KARACHI, May 9: South Africa has terminated 6.1 per cent countervailing duty on printed bedlinen imports originating from Pakistan with retrospective effect from Dec 28, 2006.

The International Trade Administration Commission (ITAC) of South Africa in its final report has notified termination of additional 6.1 per cent countervailing duty on dyed and printed bedlinen from Pakistan.

Following the withdrawal of 33.4 per cent anti-dumping duty on printed bedlinen originating from Pakistan, the International Trade Administration Commission (ITAC) of S. Africa has forwarded the final report No 211, notifying termination of additional 6.1 per cent countervailing duty on the dyed and printed bedlinen from Pakistan.

The termination of countervailing duty has been made with retrospective effect from Dec 28, 2006, according to ITAC notification issued in the official journal on May 4.

About seven years back South Africa had imposed anti-dumping duty on bedlinen imports from Pakistan on a complaint from the local industry that dumping was being made through third country, thereby, causing injury to the industry.

Pakistan having wide width of weaving frames always had advantage over its competitors in bedlinen exports. However, this also proved to be one of the most irritant factor because mostly bedlinen exports were subjected to anti-dumping duty by almost all the importing countries, including European Union, United States and South Africa.

About four years back, the EU imposed 13.1 per cent anti-dumping duty on bedlinen imports originating from Pakistan. Since the investigations were not completed, the EU decided to partially re-open the case by inviting sample companies with their records to Dubai.

On finding lesser injury, the EU reduced the anti-dumping on two occasions and finally fixed it at 5.8 per cent. In order contain imports of bedlinen from Pakistan, the United States impost ceiling which indirectly controlled the quantity and gave protection to their domestic industry.

In the past South Africa also imposed anti-dumping duty on imports of bedlinen and countervailing duty to check unbridled imports from Pakistan. There had been many occasions when bedlinen was subjected to punitive duty by different countries and manufacturers and exporters had been fighting for the removal through the quota regime which came to an end on Jan 1, 2005.