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Japan's dumping duty on yarn to lapse in August

JAVED MEHMOOD

ISLAMABAD: Anti-dumping duty imposed by Japan on the import of cotton yarn from Pakistan would lapse in August 2000, it was learnt.

Japan had slapped dumping duty in August 1995 on the yarn of 20 and 21 counts for a period of five years which would lapse in August 2000, leaving room for the export of these counts of yarn from Pakistan.

Japan levied duty with the allegation of dumping of the yarn of both the counts five years back. At that time All Pakistan Textile Mills Association (APTMA) hired a lawyer, Roger Sympson to challenge the allegation of dumping.

The lawyer could not pleaded the case properly as he had no adequate knowledge of dumping laws as a result the anti-dumping duty was levied for five years from August 1995.

Sources told Business Recorder that dumping duty on the export of yarn of 20-21 counts to Japan had discouraged yarn export to the country.

The two countries bilateral trade statistics show the export of Pakistani yarn to Japan was at $366.27 million in the financial year 1995-96 that fell to $289.60 million in 1996-97. It further shrinked to $220.431 million in 1997-98 and $167.77 million during the financial year 1998-99.

More simply, it can be said that during the past five years Pakistan has lost a foreign exchange of $198.50 million due to the imposition of anti-dumping duty on the export of yarn to Japan.

Sources expressed the hope that Japan would not enforce dumping duty again on Pakistani yarn of 20 and 21 counts. If it intended to do so, it would have to investigate the case afresh that would likely to take a year.

During the period of duty Japan remained lenient to the import of cotton yarn from here because some local exporters continued to export yarn of 20 and 21 counts by showing it of higher counts in documents. This malpractice was in the knowledge of Japanese authorities concerned, but they did not show any concern over it.

Sources expected that after the expiry of dumping duty from August 2000 the export of yarn from Pakistan to Japan would attain the previous momentum.

Current statistics of exports point out 13.09 percent growth in the export of yarn in eight months of this fiscal. The country has earned $678.343 million by exporting yarn during July-February 1999-2000 and during the corresponding period of last fiscal yarn exports fetched $599.61 million.