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EU to lift dumping duty on shoes
From April 1, the European Union (EU) anti-dumping taxes applied to leather-capped shoes originating from Viet Nam and China will no longer apply, according to Viet Nam's Trade Office in the EU and Belgium-Luxembourg.
In 2009, Vietnamese shoemakers eagerly expected the European Commission (EC) to remove its anti-dumping levy, which had been in operation since 2006. Then in January 2010, an EC decision to extend anti-dumping measures imposed on leather-capped shoes was implemented.
Vietnamese producers were burdened with a 10-percent tax rate for 15 further months. Chinese producers also suffered a tariff of 16.5 per cent.
The EU's tariff clearly caused considerable damage to the Vietnamese shoemaking industry. A representative from Hiep An Joint Stock Company, a Viet Nam Leather and Footwear Association member, told Viet Nam News on Mar. 17 that his company's orders had fallen 40 per cent due to the levy.
However the EU announced on March 16 it would officially abolish the anti-dumping tariffs on leather-capped shoes imported from Viet Nam and China from March 31.
The information was confirmed in the EU's Official Gazette on March 16, according to announcement No.2011/C 82/04 made by the EC.
According to Vu Ba Phu, Vice Director of the Viet Nam Competition Authority Department (VCAD) under the Ministry of Industry and Trade, the abolition of the tariff will create a series of new opportunities for Vietnamese shoe exporters.
"The competitiveness of Vietnamese enterprises will be remarkably improved, which should help companies gradually regain their advantages compared to foreign shoemakers, and increase exports again," Phu said.
He also added that both businesses and foreign consumers would benefit as buyers would have access to lower cost suppliers.
However, the EC's report highlighted that it would continue to apply a year-long monitoring mechanism to assess the import of leather-capped shoes from Viet Nam and China. The monitoring process is designed to help the EC take early measures in case dumping is uncovered.
In such a context, VCAD recommends instead of massively increasing exports to the EU, local business should seek good value, high quality contracts.
vietnamnews
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