Mainland Leather Shoes Bypass Macao Export?

Since the EU imposed anti-dumping duties on leather shoes exported to the mainland in October 7, 2006, the export volume of Macao leather shoes that has not been affected has risen sharply in the past two years.

Yesterday, the first financial daily learned from the China Leather Association that the EU's anti circumvention investigation of Chinese leather shoes was the latest result of suspicion of the mainland's leather shoes passing around Macao's exports.

In April 29th, the EU member states voted to impose a 16.5% anti-dumping duty on leather shoes exported to Macao.

Macao's export volume has soared. "It is our expectation that we impose anti-dumping duties on Macao. We have sent many early warning to enterprises, including anti circumvention, but some small and medium-sized shoe companies have gone this way."

China Leather Association official told reporters.

This time, the anti-dumping duty on leather shoes in Macao is the same as the anti-dumping duty on leather shoes in the mainland until October 7th this year.

According to the EU trade statistics, during the 4~12 months of 2005, the number of leather shoes exported to the EU from Macao was about 500 thousand pairs, but in the same period of 2007, this figure has surged to 8 million 500 thousand pairs.

The production of leather shoes in Macao is not large, and the production of leather shoes has been greatly reduced in 2005 with the cancellation of global clothing quota.

According to the EU survey, the number of leather shoes exported to the EU during the same period of the mainland has been greatly reduced. It is believed that after the EU has imposed anti-dumping duties on leather shoes in the mainland, many enterprises have exported to Macao after they have been pported to the EU.

At present, 8 Macao enterprises have taken part in the complaint. The EU said that the 8 Macao exporters used most of the raw materials supplied by the mainland suppliers, including leather, plastic, upper and so on. Only a small amount of secondary materials were purchased locally in Macao, accounting for less than 2% of the total value of the assembled parts.

During the investigation, Macao enterprises emphasized that the leather shoes exported to Macao by the EU increased, not due to circumvention of anti-dumping duties. Now all leather shoes exported from Macao are all derived from Macao and conform to the rules of origin of Europe.

Reporters yesterday from Zhejiang, Wenzhou, Quanzhou and other provinces and cities leather or footwear industry associations learned that, although there are evasion, but on these provinces and cities, Macao enterprises exported a few.

Worried about extending the anti-dumping period, the above China Leather Association official told reporters that the anti-dumping duties imposed on Macao shoe enterprises will not only affect the export of local enterprises, but also bring a very bad impression on the EU.

"Originally the deadline for October of this year has arrived, but now the EU will think that enterprises take evasive measures and are very insincere."

At present, there are already reports that European shoe companies require the European Commission to review the expiration of Chinese leather shoes, and during the period of about 12 months' review, anti-dumping measures will continue to take effect automatically. The EU is likely to continue the relevant measures based on the results of the review.

"In fact, countries such as Spain and Italy have very much hope that this measure will continue."

The source said.

Over the past year, the implementation of the anti-dumping duty has brought about a substantial impact on the export of enterprises.

AOKANG group told reporters that at present, 60% of AOKANG's shoes are exported to Europe, while the European Union's anti-dumping has led to the loss of nearly 15% of AOKANG's European orders. Some importers have shifted their orders to Vietnam, Pakistan and other regions due to changes in import costs.

"Because 16.5% of the tariffs are on European dealers, a larger customer in Italy has interrupted our cooperation because they are very demanding on price."

A manager of AOKANG import and export company said the full text.

According to statistics from China Chamber of Commerce for import and export of light industrial arts and crafts, under the influence of anti-dumping, the EU's export of leather shoes to the EU showed a decrease in price. The number of leather shoes exported to the EU last year was 120 million pairs, which was 6.6% lower than that in the same period of 2006. The export amount was 900 million US dollars, up 9.5% over the same period last year.