EC slaps levy on bed linen imports

The Pondicherry-based Anglo-French Textiles is the worst hit with a duty of 24.7 per cent. While the duties imposed on Ahmedabad-based Omkar Exports and Madhu Industries are 14 per cent and 17 per cent respectively, the duties applicable to Bombay Dyeing and Prakash Cotton, both Mumbai-based companies, are 2.7 per cent and 21.6 respectively.

However, the companies are exempted from the burden of paying provisional duties as it was imposed after the deadline. The duties will not be applicable on products like bedlinen made from handloom fabrics, bedlinen made from man made fibres and bedlinen made from pre-domnant fibre.

The cotton textile exports promotion council (Texprocil) has criticised the procedures adopted by the commission for the imposition of duties. The sample companies also include a state-owned enterprise (Anglo French) which is under statutory obligation to provide employment to the state (Pondicherry). Due to this, the labour cost of this company is different from that of the rest of India. The commission’s calculation of the dumping margin of the company without any adjustment of its labour cost does not qualify as "proper" within the meaning of the Article 17.6 of the agreement, says a Texprocil release.

Texprocil has taken up the matter with ministry of textiles since the methodology adopted by the commission violates some of the provisions of World Trade Organisation (WTO) anti-dumping regulations.

The ministry of textiles appears to be dragging its feet on the matters concerned with anti-dumping duties is evident from the increasing targetting of textile products from the country by the European commission, say sources. In fact, the commission has initiated enquiry against imports of cotton grey fabrics for the third time with the ministry remaining a silent spectator, sources added.