Import Fees on Footwear on the Rise in Europe

May 28, 2010 :: Posted by - admin :: Category - News

Most everyone is aware that not only the US has been suffering economically.

We have discussed a couple times in the past the Affordable Footwear Act. No, none of the current manufacturers of footwear in the US oppose the Affordable Footwear Act. This is because we do not make the kind of shoes here in the US that are being imported from China to be sold here. But while people here are fighting to eliminate the import fees on footwear being imported from China, China’s Commerce Ministry imposed a 96.5% duty on certain types of nylon imports from the US, more than doubling a preliminary anti-dumping tariff of 36.2% set last October. In the meantime the European Union, Russia and Taiwan were assessed anti-dumping penalties in October’s ranging between 4% to 23.9%.

We would like to explain what an anti-dumping duty is. It is a penalty imposed upon suspiciously low-priced imports, to increase their price in the importing country and so protect local industry from unfair competition. Anti-dumping duties are assessed generally in an amount equal to the difference between the importing country’s FOB price of the goods and (at the time of their importation) the market value of similar goods in the exporting country or other countries.

In Europe the economy is hurting as well. Unlike the US though they have extended import duties of up to 16.5 percent on Chinese shoes.

In December, Brussels extended import duties of up to 16.5 per cent on Chinese shoes, claiming that they unfairly undercut the cost of EU producers.

The European Footwear Alliance, estimates that EU consumers and businesses could lose hundreds of millions of euros through 2011. Meanwhile, the charges could generate euro 1 billion in tariffs, without helping Europe recoup lost manufacturing jobs because shoes from China and Vietnam are now being replaced by imports from other emerging countries.

The charges add between 9.7 percent and 16.5 percent to the import price of Chinese shoes and 10 percent to Vietnamese shoes. The EU says that equates to price jumps less than euro 1.50 for shoes that sell for euro 50, because the product is being imported at a price around euro 9.

So why are we trying to make it better for China to sell their goods here in the US while they are making it even harder for us to sell our goods in China?