EU's leather shoes anti-dumping duties due to follow-up measures Chinese companies still need to be vigilant

With the announcement recently issued by the European Commission, this yoke will soon be lifted. The EU announced that from March 31, 2011, it officially suspended the anti-dumping duties on leather shoes produced in China.

The anti-dumping tax of 16.5% is undoubtedly the most important goal for most foreign-funded Chinese foreign trade companies. A data shows that from 2006 to the end of 2010, due to the EU's anti-dumping tariffs, China's exports to Europe, leather shoe sales fell 20%, directly leading to 20,000 people unemployed.

This is undoubtedly a gospel and deserves to be celebrated and celebrated. However, behind this resistance, Chinese companies have reaped more than just a victory in anti-dumping and retribution, but more should be the repositioning of the industry and the re-emergence of the industry.

This is a five-year war. Both sides of the wrestling force, the EU and Chinese shoe companies, have actively defended and mediated for the market and interests.

In October 2006, the EU formally imposed anti-dumping duties on leather shoes imported from China.

Excuses: Exporting companies sell for less than cost

The EU's official anti-dumping duties on leather shoes imported from China began in October 2006 with a maximum tax rate of 16.5%. As this case caused great disagreements within the EU, EU member states eventually reduced the period for anti-dumping duties from the normal five years to two years.

In October 2008, when the anti-dumping measures were supposed to expire, the EU decided to review the anti-dumping case on Chinese leather shoes to determine whether to extend anti-dumping measures. During the review, the original anti-dumping measures still apply. In December 2009, the European Union decided to review the anti-dumping measures on Chinese leather shoes for an additional period of 15 months and plans to expire at the end of this month.

As to why Chinese anti-dumping duties are to be collected from Chinese shoe companies, the EU Trade Commissioner gave the reason at that time that Chinese-made leather shoes were dumped at a price lower than the domestic production cost.

In this regard, the head of a well-known shoe company in Zhejiang said that this is just an excuse for the EU to impose anti-dumping duties on Chinese shoe companies. “They did not recognize our market economy status. The EU calculated our production costs. The reference turned out to be a third country’s Cost of production."

At present, China's exports of leather shoes to the EU average 10 US dollars, "Although the overall price is not high, but due to lower domestic labor costs, companies still have a certain profit." The responsible person said that the third country's production costs to consider China's shoe company is undoubtedly an abnormal means.

Resistance: 5 companies "pull" to draw an appeal

In recent years, Chinese companies have encountered anti-dumping internationally and have become the norm. With the accumulation of experience, domestic companies are actively changing their attitudes and methods in responding to anti-dumping.

However, five years ago, when Chinese companies encountered anti-dumping, they mostly chose to accept it silently. Taking the anti-dumping measures imposed by the European Union on Chinese leather shoes as an example, only five companies have filed appeals against anti-dumping cases against leather shoes examined by the European Court of First Instance. 99% of domestic enterprises have chosen unconditional acceptance.

Aokang, as the leading enterprise of Zhejiang shoe companies, played a leading role in this five-year lawsuit. For this lawsuit, Ao Kang’s chairman Wang Zhenyu stated that since the WTO accession, many domestic companies still do not understand the rules of the game. “Some companies feel that the cost pressure is high, and the other is that they don’t know much about this kind of process.”

Wang Zhenlu said, but one thing is certain. Regardless of whether this lawsuit wins or loses, “For the Chinese footwear industry, we let the European Union see China’s shoe companies not being bullied and not screaming. We dare to use the law to safeguard our dignity. We understand international law. ”

With the efforts of the Ministry of Commerce and Aokang and other enterprises, anti-dumping has finally come to an end. The EU finally decided to abandon its anti-dumping duties. "To some extent, there is no continuation is a victory," said a person in charge of a shoe company in Hangzhou.

$$$$$$

Impact: China's leather shoe exports have plummeted

"The EU's cancellation of anti-dumping duties is undoubtedly a 'lightening' of Chinese leather shoe export enterprises. This new policy will benefit more than 400 million pairs of export leather shoes from the Zhejiang port," said a Hangzhou customs official. Customs statistics show that in 2010, Zhejiang exported a total of 4.2 trillion pairs of leather shoes to the European Union, worth 1.82 billion U.S. dollars.

In other words, the total amount of leather shoes exported to the EU last year was calculated at 1.8 billion U.S. dollars. After the anti-dumping tax of 16.5% was collected, Zhejiang enterprises added about 300 million U.S. dollars in taxes and fees. Not only that, the taxation has brought even worse consequences, namely the sudden drop in the number of exports.

Take Wenzhou, an important base for the export of footwear in Zhejiang, as an example. According to statistics from the Zhejiang Inspection and Quarantine Bureau, the second month of EU’s formal levy of anti-dumping duty on Chinese shoe exports by 16.5%, Wenzhou’s export of leather goods to the EU’s 2,427,800 pairs, Compared with the same period of the previous year, it dropped by 37.80%. In particular, the traditional exporters of Wenzhou shoes, such as Germany, the United Kingdom, Denmark, and France all experienced significant declines, with the rate of decline of 93.55%.

Aokang footwear related responsible person revealed that the company exported about 1 million pairs of leather shoes to the EU in 2006, but with the anti-dumping tax levy, O'Connell basically gave up its exports to the EU in the past five years.

From March 31, 2011, the EU officially suspended the anti-dumping duties on Chinese-made leather shoes.

Inspiration: Chinese shoe companies should fundamentally respond

"The elimination of anti-dumping duties is something we have been waiting for, but we should still look at this matter rationally." Wang Hailong, a propaganda department manager of a shoe company, said that once the European market is open, Chinese shoe companies should not be blindly exported. sequence.

Wang Hailong believes that in order to fundamentally solve the problem, enterprises should try to increase the value-added technology and added value of the brand, so that the price can be set higher, involving intellectual property issues, companies must also regulate their own export behavior; On the one hand, Chinese shoe companies can go out and deepen cooperation with European shoe companies, such as R&D, technology, and market channels, to enhance mutual understanding and prevent similar problems from recurring.

Yesterday, the chairman of Aokang Shoes Industry Co., Ltd. Wang Zhenyu disclosed that in the future, Chinese shoe enterprises should establish R&D and procurement centers abroad, and even purchase international brands. Strengthening cooperation and exchange with international shoe companies is the real solution to the foreign trade friction path, and can truly be based on international Economic stage.

Data show that at present, the average price of leather shoes exports in Zhejiang is about 5 US dollars, and Aokang Group in recent years through product structure adjustment, export prices continue to adjust, the current average price of leather shoes exports is about 20 US dollars, is the average price of exports of footwear in Zhejiang 4 times.

View

The crisis did not lift the EU investigation continues

Although the EU decided to abolish anti-dumping duties on Chinese shoes, the crisis has not been lifted. Wei Yafei, director of the shoemaking office of the China Leather Association, said that the EU still has some follow-up questions and preparations in many aspects, and it has now started to investigate relevant situations in China.

The EU survey on China's footwear industry mainly has five aspects. The first is to monitor the number of Chinese leather shoes imported into the European Union. Each week, the number is notified to the European Footwear Federation. Second, the compulsory origin labels are used to prevent some counterfeit origin products from entering the European market, mainly footwear. Third, strict control over possible violations of intellectual property rights; Fourth, the European Footwear Association calls on the European Commission to urge the Chinese government to open up the high-end market and further open up the retail market, hoping to profit from fast-growing consumption. Finally, more attention was paid to China's export-related policies, especially counter-subsidy policies.

Wei Yafei reminded export enterprises to conduct regular tracking in the above-mentioned aspects, regulate their own trade behavior, and strengthen self-discipline. At the same time, they hope that through this case, domestic enterprises can adjust their export structure and export quality as soon as possible.

In terms of how to deal with follow-up issues, Wei Yafei stated that first of all, it should avoid excessive growth of products exported to Europe in the short term; on the other hand, the use of labels for origin must meet the requirements of the EU and guarantee the smooth export of products; Third, in terms of intellectual property rights, enterprises should standardize self-discipline to avoid infringement; in terms of related policies, enterprises must understand the relevant situation and do preventive measures in a timely manner.