Fujian Customs Analysis Of Footwear Exports Facing Major Constraints

Fuzhou customs combined with the export data of footwear products in Fujian before May, analyzed the main constraints of the current export of footwear products, and put forward relevant suggestions.

(1) foreign anti-dumping measures are ongoing. The WTO ruled that the Sino European footwear trade dispute case is worth looking forward to.

Since October 2006, the EU has imposed a high anti-dumping duty on China's leather shoes, which has caused heavy losses to the export of leather shoes in China, and some enterprises have even been forced to abandon the EU market.

In December 30, 2009, the European Union decided to continue levying anti-dumping duties on 16.5% of our leather shoes.

With the joint efforts of our government, trade associations and enterprises, the WTO dispute settlement body has decided to set up a special panel to decide the Sino European footwear trade dispute.

This will win the opportunity for our footwear enterprises to safeguard their legitimate rights and interests.

In addition, developing countries such as Argentina and Brazil have restricted their footwear products this year.

Among them, Argentina has set the lowest reference price for all footwear products imported from China since May 22nd, and the lowest FOB price per pair of shoes is US $13.38.

Once the import quotation is lower than this standard, the tariff will be levied according to the reference price.

The measure is valid for 5 years.

Since March 5th, Brazil has imposed an anti-dumping duty of 13.85 US dollars on shoes imported from China for a period of 5 years.

(two) international technical barriers are in place, and the EU DMF ban should be taken seriously.

In recent years, international technical barriers have become more and more serious. Developed countries such as Europe and the United States have made stringent technical standards, technical regulations and technical certification system barriers by virtue of their own technical and economic advantages, resulting in the export of footwear products in China blocked. Some products are even recalled because they are not up to standard.

What is particularly noteworthy is that in March 12th this year, the European Commission issued a 2010/153/EU decision that the ban on the consumption of two fumarate (DMF) over 0.1ppm will be extended for one year to March 15, 2011.

DMF is widely used in footwear, leather, fabric lining, insole and upper, as well as antiseptic and antiseptic in shoes and shoes packaging.

The DMF ban, which has been implemented since May 1, 2009, has caused many shoe products to be exported to China.

As of March this year, the European Union has announced 35 cases of violation of DMF directive products, of which 31 cases come from China, accounting for 89% of the total number of products, all of which are footwear products.

In the 1 quarter of this year, China's export footwear products were recalled by the United States and Europe in 31 batches, a sharp increase of 40.91% compared with the same period last year.

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(three) emerging shoe making countries are rising rapidly, and China's footwear enterprises are facing strong competition.

In recent years, emerging footwear countries such as India, Brazil, Vietnam and Indonesia have risen rapidly and become the main competitors of China's footwear exports.

In the context of the financial crisis, external demand continues to slump, the local government's support for footwear exports is increasing.

India is the second largest footwear producer in the world after China.

The India government will implement a stimulus plan lasting 6 months and a total of 6 billion 250 million rupees from April 1st.

Among them, 4 billion rupees will be used to promote the export of shoes and clothing, especially to promote the export of 300 kinds of shoes and clothing to the two major markets of the United States and Europe.

Due to many factors such as RMB appreciation, raw material price increase and labor shortage, and the frequent export of anti dumping containment, China's attractiveness to shoemaking enterprises is gradually decreasing, and more enterprises are looking to emerging shoe makers with lower production costs.

For example, recent Indonesian news shows that 10 shoemaking enterprises from China, Korea and Thailand have invested about 1.5 to 200 million dollars in the year to Indonesia's footwear industry.

(four) the euro continued to depreciate, and the risk of exporting to the EU increased further.

The EU is the largest export market for footwear in Fujian.

For enterprises settled in euros, it is necessary to convert the US dollar into Renminbi and then exchange US dollars for the euro. There are two kinds of exchange rate risks.

This year, affected by the European sovereign debt crisis, the euro has been declining in a weak position.

In June 1st, the euro ended at 1.2253 against the US dollar in New York, and once again dropped to 1.2111 in intraday trading, once again refreshing its lowest level in four years.

Since the beginning of this year, the depreciation rate of the euro against the US dollar has been close to 20%[5].

The devaluation of the euro has caused our export footwear enterprises to face a general increase in costs.

In addition, in order to avoid exchange rate risk and reduce costs, buyers may not dare to take big orders and long lists, change small orders and short orders, or turn to Vietnam and other countries to purchase, thus reducing the export volume of China's footwear products.