KARACHI, Nov 7: The European Commission (EC) has proposed withdrawal of anti-dumping duty imposed about four years ago on bedlinen imports from Pakistan.

Based on revised calculations, the commission has reached a conclusion that no dumping had existed for exports of bedlinen originating from Pakistan, during the investigation period.

The EC in its finding, as had been reported in its official ‘disclosure document’, states that the revised calculation shows that no dumping had been made by any of the five sample companies selected for investigation from Pakistan.

Consequently, the commission has proposed termination of the anti-dumping proceedings initiated in 1997, against Pakistani exporters of bedlinen. Although the EC has not made known the exact date but once it is officially announced the anti-dumping duty imposed at 6.4 per cent on bedlinen imports from Pakistan will immediately cease to exist.

As per the past practice exporters believe that EC will officially gazette the proposal in a week or ten days but the termination of punitive duty will have no retroactive effect.

Appreciating the EC proposal for terminating anti-dumping duty on bedlinen imports from Pakistan, the chairman Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmed said that it will immensely benefit our exports in the light of recent European Union (EU) decision to zero tariff rates on imports of some textile goods from Jan 1, 2002.

He said if the punitive duty is not removed on bedlinen this would have meant that the normal customs duty of around 10 per cent would also be in place and the benefit given by EU would not be availed.

There is annual export of $300 million of bedlinen to EU countries and after the removal and termination of punitive duty Pakistani exporters will have an edge over their competitors.

When punitive duty was imposed by the EC in 1997, Indian government immediately approached appellate body of WTO who earlier this year gave its decision in favour of India. But the government of Pakistan did not take any action on the advice of three companies who were selected for sample investigation and were exonerated from the punitive duty.