KARACHI, Aug 28: The European Commission (EC) has selected eight companies or exporters for sample survey to carry out interim dumping review of imports of Pakistani bedlinen to the European Union (EU) member states.

However, the EC has not given any date for the arrival of its inspectors who would be carrying out on the spot verification and investigations of these companies or exporters of bedlinen.

It will be interesting to see that how the things would shape up this time because prior to imposition of 13.1 per cent anti- dumping duty early this year the EC's investigation team rushed back home without completing the survey of all the sample companies selected for the verification and investigation.

The exporters at that time had agitated against the sudden withdrawal of the EC's investigation team. The EC team had only conducted sample survey of one company out of five planned. But even then the EC imposed a 13.1 per cent definitive anti-dumping duty for a period of five years on imports of cotton-type bedlinen originating from Pakistan.

Nevertheless, the EC on August 3, 2004, through its official journal notified its decision for initiating partial interim review of the anti-dumping measures on bedlinen imports from Pakistan. The EC's decision for interim review did not only pacify bedlinen exporters but was also taken as a right step for ensuring justice and fair play.

Now the entire fate of the bedlinen exports to EU states, ahead of free market era starting from 2005, depends upon the sample survey of these eight companies. The country's national average of cost, prices, quantum of bedlinen depends on the survey and verification of these companies.

Exporters from Faislabad told Dawn that if these companies proved innocent the punitive duty will have to go altogether but in case proved guilty the EC may even enhance the rate of anti-dumping duty up to 50 per cent.

However, exporters are optimistic about the outcome of the investigation and believe that the forthcoming meeting between the Commerce Minister Humayun Akhtar Khan and EC trade minister Pascal Lamy in Brussels would also have positive impact of trade relation between Pakistan and EU states.

It is also expected that Humayun Akhtar Khan will also ask the EC trade minister to include 'war against terrorism' in the ambit of Generalized System of Preferences (GSP) so that Pakistan could be exempted from 12 per cent customs duty.

The EC after qualifying Pakistan in the GSP given on the basis of drugs is going to withdraw the 12 per cent customs duty concession from January 1, 2005. This would mean that if the anti- dumping duty of 13.1 per cent on bedlinen remains or even increases it will make Pakistan bedlinen uncompetitive in the European market.

Once the commerce minister succeeds in convincing Pascal Lamy on including 'war on terrorism,'in which Pakistan is a front line state, in the GSP this would mean that our exporters of bedlinen will get a relief of 12 per cent from customs duty for another couple of years, another Faisalabad exporter said.

The following eight companies have been selected for sample survey by the EC: Gul Ahmed, Al-Abid, Chenab, Mohammad Farooq, Lucky Textile, Younus Textile, Fair Deal Textile.