05/06
EU cuts dumping duty on bedlinen
The European Union has implemented the reduced anti-dumping duty of 5.8 per cent on imports of bedlinen from Pakistan, with effect from May 7, 2006.

The EU official journal in its announcement on Saturday, through council regulation (EC) No 695/2006 of May 5, 2006, amended regulation (EC) No 397/2004, imposing a definitive anti-dumping duty on imports of cotton-type bedlinen originating from Pakistan. The EU imposed punitive duty of 13.1 per cent in early 2004, but on the strong protest from Pakistan it was immediately put for a partial review by the European Commission.

In the middle of March this year, a majority of the 25 members of the European Union voted in favour of a further cut in anti-dumping duty on imports of bedlinen from Pakistan. As a result of this, the national average of punitive duty was lowered by another 1.8 percentage pint to 5.8 per cent, while individual cooperative and sample companies have also been given some further cut in duty. The journal accepted that 13.1 per cent definitive anti-dumping duty was imposed on the basis of facts available and without complete verification on spot of sample companies.

The EU team had to return home for some reason, leaving the investigation process incomplete. However, the European Commission while realizing that it could not justify the 13.1 per cent anti-dumping duty in the court of law, on August 3, 2004 decided to initiate an interim review limited to dumping aspects in order to review findings on the basis of data that had been fully verified and better reflect the situation of Pakistani exporters.

Based on some security concerns, the commission this time carried out the verifications in the UAE which restricted the investigating teams’ access to accounting registers and accounting systems of the experts. The EC felt that findings were sufficiently reliable to justify a modification in the level of anti-dumping duties.

As a result of these investigations, the EC felt that the original dumping margin was lower than the injury elimination level definitely determined and therefore the definitive anti-dumping duty was based on the lower dumping margin, namely 13.1 per cent. Since dumping margins found in the present interim review are still lower than the injury margin, the amended anti-dumping duties should be based on these lower dumping margins, the official EU journal pointed out.

Consequently, the level of duties have been lowered for manufacturers/exports included in sample verifications with the following rates as were earlier accepted and approved by the majority member states of the EU: Yunus Textile 8.5 per cent, Lucky Textile 7.2 per cent, Nishat Mills 6.1 per cent, Chenab 5.7 per cent, Gul Ahmed 5.6 per cent, Al-Abid 3.9 per cent, Mohammad Farooq Textile 3.5 per cent, Fairdeal Textiles zero duty. For cooperating, exporters, not included in the sample duty rate, have been fixed at 5.8pc and for all other companies 8.5pc.

Pakistan Bedwear Exporters Association Chairman Shabir Ahmed appreciating the EU’s decision said it would have been better if punitive duties were totally withdrawn in the quota-free regime.