Wenzhou shoes encounter waves in Spain, local government issues new policies

as we all know, as the “shoe making center” of Spain and Europe, Elche enjoys the reputation of “the first shoe city in Europe”. 1t is precisely because of the favorable weather and geographical conditions here that the shrewd Wenzhou people have come here to set up shoe stores or factories to make shoes. With their intelligence and diligence, Wenzhou people soon established themselves in the local area, and their business continued to expand. They mainly sell in wholesale warehouses, so that cheap and high-quality Chinese shoes quickly won the favor of local consumers, their business expanded rapidly, and their market share also increased rapidly. At present, there are more than 80 wholesale warehouses selling Chinese shoes in Elche< However, recently, Liu Guangzhong, President of the Spanish Chinese Shoe Association, and Lin bin, President of Spain's Olin group, reported that Wenzhou shoes are in trouble again in Spain, and the Spanish government has issued a new policy and regulation on imported shoes, which will impose a huge fine if they are deemed to have a low price when they are imported. Although this policy is not specifically aimed at Wenzhou shoes, Wenzhou shoes are actually most affected by this policy and regulations because Wenzhou shoes occupy more than 60% of the Spanish market. Several well-known Wenzhou shoe enterprises withdrew from the Spanish market last month according to Liu Guangzhong and Lin bin, the main content of this new policy and regulation issued by the Spanish government is not complicated. When the shoes are imported to the local customs of Spain for customs declaration, the customs will compare the shoes with the same or similar products in the customs catalogue according to the relevant types and materials of the shoes. 1f the price of the shoes is lower than the price in the customs catalogue, the goods will be seized, and the relevant shoe manufacturers will pay the tariff, value-added tax and corresponding fine according to the catalogue price before they can get the goods back it is this additional tariff, value-added tax and fine that makes Liu Guangzhong, Lin bin and other Spanish shoe merchants in Wenzhou worried. Spanish shoes import tariff is 17%, VAT is 18%, fine depends on the amount of tax to be paid. When Wenzhou shoes are declared in Spain, the quotation is usually only 1 euro or even lower, while the price on the Spanish customs catalogue is often 4-5 euro or even higher the Spanish government’s tightening of Customs quotation surprised Wenzhou shoe manufacturers in Spain. Liu Guangzhong said that for many years, the Spanish government has been quite lenient in the quotation of imports and has never taken such strict measures. Wenzhou shoe merchants in Spain speculated that it might be a means for the Spanish government to “open source” in the financial crisis Lin Bin said that Wenzhou businessmen also understand the policy and regulations issued by the Spanish government, but they are quite dissatisfied with the basis for the customs to determine the low quotation. The price of shoes in the Spanish customs catalogue is the price of products from Spain and the European Union, but the production cost of the European Union is much higher than that of Wenzhou. 1t is extremely unfair to determine whether the price of shoes in Wenzhou is low based on the price of shoes in the European Union in fact, the “shoe burning incident” in Spain is not a simple anti Chinese case, but has a complex economic background. From January 1, 2005, the European Union will cancel the quota of some shoes imported from China, which means that Wenzhou shoes will gain a broader market space in Europe. However, at the same time, the sharp contradiction between Wenzhou shoes and European shoes is bound to explode in trade, culture, race and other fields. The city of erche in Spain is known as the “European shoe capital”. However, after entering erche, Wenzhou shoes have developed rapidly, posing an objective threat to the local shoe industry. Wenzhou businessmen assert that it will not be long before the shoe sales network of Spain and even the European Union is likely to “reshuffle”. 1t is for this reason that Wenzhou shoes are constantly encountering unexpected events in the EU

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