PPE

Chinese enterprises still need to be vigilant about the follow-up measures of EU anti-dumping duty on leather shoes

with a recent announcement issued by the European Commission, this shackle is about to be lifted. The European Union announced that it would formally stop imposing anti-dumping duties on shoes made in China from March 31, 2011

the 16.5% anti-dumping duty, for the vast majority of China’s foreign trade enterprises with low profits, is undoubtedly the most important lifeline for the other side. A data shows that from 2006 to the end of 2010, due to the implementation of the EU’s anti-dumping duties, China’s sales of leather shoes exported to Europe fell by 20%, which directly led to the unemployment of 20000 people

this is undoubtedly a good news, worthy of cheering and celebration. However, behind this struggle, what Chinese enterprises gain is not only the victory of an anti-dumping struggle, but also the reorientation of the industry

this is a five-year “war”. The two sides, the European Union and Chinese shoe enterprises, have actively defended and mediated for the market and interests< 1n October 2006, the European Union formally imposed anti-dumping duties on shoes imported from China. excuse: exporting enterprises sell shoes at a price lower than cost. the EU formally imposed anti-dumping duties on shoes imported from China since October 2006, with the highest rate of 16.5%. As the case caused great differences within the EU, the EU Member States eventually reduced the period for levying anti-dumping duties from the usual five years to two years in October 2008, when the anti-dumping measures should have expired, the European Union decided to launch an expiry review on the anti-dumping case of Chinese leather shoes to decide whether to extend the anti-dumping measures. During the period of reexamination, the original anti-dumping measures still apply. 1n December 2009, the EU made a review decision to extend the anti-dumping measures on Chinese leather shoes for another 15 months, which is scheduled to expire at the end of this month as to why anti-dumping duties should be imposed on Chinese shoe enterprises, the reason given by the EU Trade Commission at that time was that Chinese shoes were dumped into the EU at a price lower than the domestic production cost in response, a person in charge of a well-known shoe enterprise in Zhejiang said that this was just an excuse for the EU to impose anti-dumping duties on Chinese shoe enterprises, “they did not recognize our market economy status, and the EU calculated our production costs with reference to the production costs of a third country.” at present, the average price of leather shoes exported from China to the EU is $10. “Although the overall price is not high, due to the low labor cost in China, enterprises still have a certain profit.” The person in charge said that it is undoubtedly an abnormal way to consider China’s shoe enterprises based on the production cost of a third country< 1n recent years, it has become a normal situation for Chinese enterprises to encounter anti-dumping in the world. With the accumulation of experience, the attitude and way of domestic enterprises in dealing with anti-dumping are also changing however, five years ago, when Chinese enterprises encountered anti-dumping, they mostly chose to bear it silently. Taking the EU’s anti-dumping on Chinese leather shoes as an example, only five enterprises appealed to the EU Court of first instance on the anti-dumping case of leather shoes, and 99% of domestic enterprises chose to accept it unconditionally as the leading enterprise of Zhejiang shoe enterprises, Aokang has played a leading role in the five-year lawsuit. Wang Zhentao, chairman of Aokang shoes, said that since China’s accession to the WTO, many domestic enterprises have not understood the rules of the game very well” Some enterprises feel great pressure on expenses, and they don’t know much about this kind of procedure. “< But one thing is certain. No matter whether this lawsuit is won or lost, "for China's footwear industry, we let the EU see that Chinese shoe enterprises are not bullied and dare not speak out. We dare to defend our dignity with the law, and we understand international law." with the persistent efforts of the Ministry of Commerce, Aokang and other enterprises, anti-dumping has finally come to light. The European Union finally decided to give up the anti-dumping duty” To some extent, not going on is a victory. ” A person in charge of a shoe enterprise in Hangzhou said< The impact: the export volume of China's leather shoes plummeted “the EU’s cancellation of the anti-dumping duty will undoubtedly reduce the burden on China’s leather shoes export enterprises. This new deal will benefit more than 400 million pairs of shoes exported at Zhejiang port.” A person from Hangzhou Customs made such an analysis. Customs statistics show that in 2010, Zhejiang exported 4.2 trillion pairs of leather shoes to the European Union, worth US $1.82 billion< 1n other words, Zhejiang's total export of leather shoes to the European Union last year was US $1.8 billion. After imposing an anti-dumping duty of 16.5%, Zhejiang's enterprises paid about US $300 million more taxes. What's more, the even worse consequence of taxation is a sharp drop in the number of exports< According to the statistics of Zhejiang 1nspection and Quarantine Bureau, in the second month after the EU formally imposed a 16.5% anti-dumping duty on Chinese shoe exporters, Wenzhou exporte2.4378 million pairs of leather shoes from the EU, down 37.80% compared with the same period of the previous year. 1n particular, the traditional export countries of Wenzhou shoes, such as Germany, the United Kingdom, Denmark and France, showed a sharp decline, with a year-on-year decline rate of up to 93.55%< According to the relevant person in charge of Aokang shoes industry, the company exported about 1 million pairs of shoes to the European Union in 2006, but with the imposition of anti-dumping duties, Aokang basically gave up exporting to the European Union in the past five years since March 31, 2011, the EU has officially stopped imposing anti-dumping duties on Chinese leather shoes enlightenment: Chinese shoe enterprises should fundamentally deal with “the cancellation of anti-dumping duty is what we have been looking forward to for a long time, but we should still treat this matter rationally.” Wang Hailong, manager of the Publicity Department of a shoe company, said that once the European market is opened, Chinese shoe enterprises should not blindly export, but should be standardized and orderly Wang Hailong believes that in order to fundamentally solve the problem, enterprises should try their best to improve the technology added value and brand added value of products, so that the price can be set higher. Enterprises should also regulate their own export behavior when it comes to intellectual property rights; On the other hand, Chinese shoe enterprises can go out and cooperate deeply with European shoe enterprises, such as R & D, technology and market channels, so as to strengthen mutual understanding, so as to avoid the recurrence of similar problems yesterday, Wang Zhentao, chairman of Aokang shoes, revealed that in the future, Chinese shoe enterprises should establish R & D and purchasing centers abroad, and even acquire international brands. Strengthening cooperation and exchanges with international shoe enterprises is the real way to solve foreign trade frictions, so as to truly stand on the international economic stage the data shows that at present, the average export price of Zhejiang leather shoes is about $5, while Aokang Group’s export price has been constantly adjusted through the adjustment of product structure in recent years. At present, the average export price of leather shoes is about $20, which is four times of the average export price of Zhejiang shoes views the crisis has not been lifted, and the investigation of the EU is still continuing although the EU has decided to cancel the anti-dumping duty on Chinese leather shoes, the crisis has not been lifted. Wei Yafei, director of shoe making office of China Leather Association, said that the EU still has some follow-up problems and preparations in many aspects, and has now started to investigate the relevant situation in China the EU’s survey on China’s shoe industry mainly includes five aspects. The first is to monitor the quantity of all Chinese leather shoes imported into the EU and report the quantity to the European footwear union every week; Second, the use of mandatory origin labels to prevent some counterfeit products from entering the European market, mainly footwear products; Third, we should strictly control possible violations of intellectual property rights; Fourth, the European footwear Union 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 the rapid growth of consumption; Finally, we should pay more attention to China’s export policies, especially the countervailing policies Wei Yafei reminds export enterprises to regularly track the above aspects, regulate their own trade behavior, and strengthen self-discipline. At the same time, he hopes that through this case, domestic enterprises can adjust their export structure and export quality as soon as possible on how to deal with the follow-up problems, Wei Yafei said that first of all, we should avoid the rapid growth of products exported to Europe in the short term; On the other hand, the use of origin labels must meet the requirements of the European Union to ensure the smooth export of products; Third, in terms of intellectual property rights, enterprises should regulate and self-discipline to avoid infringement; 1n terms of relevant policies, enterprises should understand the relevant situation and take precautions in time

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