Wenzhou Shoes In Spain Meet The Billows &Nbsp; &Nbsp; Famous Shoe Companies Exit The Market

August 31st dispatch 2004 in Elche, Spain

Wenzhou shoes meet

According to Liu Guangzhong and Lin Bin, the main content of the new policies and regulations promulgated by the Spanish government is not complicated.

When the shoes are imported to Spain for customs declaration, the customs will compare them with the same or similar products in the customs catalogue according to the relevant types and materials of the shoes. If the prices of these shoes are lower than the customs catalogue, the goods will be seized and the relevant footwear dealers will pay the customs duties, VAT and the corresponding fine after the price is paid by the relevant footwear dealers before they can get the goods back.

It is this supplementary duty, value-added tax and fines that make Liu Guangzhong, Lin Bin and other Spanish Wenzhou shoe makers frightened.

Spanish footwear import tariff is 17%, value-added tax is 18%, fines are determined according to the amount of tax to be paid.

The price of Wenzhou shoes when declared in Spain is usually only 1 euro or even lower, while the prices in the Spanish customs catalogue often reach 4 Euro 5 euros or even higher.

Wenzhou shoe manufacturers in Spain are mainly concentrated in Elche, with a total of more than 80 companies.

However, only five or six of them do Spanish orders, all of which are wholesale business, accounting for about 80% of Wenzhou shoe manufacturers.

The biggest influence on this policy is the footwear dealer who reaches 80%, because the selling price of the order has been determined, and the wholesale business must be calculated on the price. Low price declaration is the most powerful means of price competition. Taking a pair of shoes worth 4 euros as an example, the quoted price is 1 euros, which can at least save 1.5 to 2 euros, and this is the great advantage of Wenzhou shoes and European shoes in terms of competitive price.

Lin Bin said that Wenzhou shoe makers have been subject to successive quotations, and a shoe dealer in Wenzhou has set a record of paying more than 30 thousand euros for taxes and fines, and 20 thousand for a container.

Now that Spain has yet to get out of the financial crisis, Wenzhou shoe makers have to sell 10 containers in the first quarter. The 10 containers will have to pay at least about 200000 euros, and the better the business, the better.

Dissatisfied with the basis of low quotation

In fact, at the end of last year, Wenzhou shoe traders felt the customs declaration was not smooth.

Liu Guangzhong and Lin Bin said that at that time, everyone thought that because of the financial crisis, the customs officers' income and customs declaration were not enough.

In March this year, the Spanish government formally promulgated this policy and regulations, and we did not care much about it because it was the low season of import and export of footwear products, and few imported shoes to Spain.

Recently, it is the critical moment for the purchase and distribution of autumn shoes and winter shoes. The footwear dealers in Wenzhou can feel the lethality of this policy now.

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The Spanish government tightened customs quotations and surprised Spanish shoe makers in Wenzhou.

Liu Guangzhong said that over the past few years, the Spanish government has been very relaxed about the import quotas, and no such stringent measures have been taken.

Wenzhou shoe traders in Spain speculated that the Spanish government might be a "open source" means in the financial crisis.

Lin Bin said that businessmen in Wenzhou understood the policies and regulations promulgated by the Spanish government, but they were rather dissatisfied with the customs's identification of low quotations.

The price of the Spanish customs shoe catalog is the price of the products of Spain and the European Union, but the production cost of the European Union is much higher than that of Wenzhou. It is very unfair to determine whether the price of Wenzhou shoes is low based on the price of EU shoes.

How to deal with the new deal in Spain

Last month, several well-known shoe companies in Wenzhou suspended foreign trade in Spain. One of them was a leading enterprise in Wenzhou footwear industry.

The Ministry of foreign trade personnel told reporters that under the policy of the Spanish government, the cost of Wenzhou shoes rose sharply in Spain, without the price advantage, unable to do the market, and had to temporarily withdraw from Spain.

The Spanish Footwear Association of China also revealed that some Wenzhou shoe makers also changed their strategy to enter the Spanish market, leaving Portugal to enter the country and taking land to Spain, avoiding the "meeting" with the Spanish customs.

But both Liu Guangzhong and Lin Bin believe that in order to deal with this policy regulation, Wenzhou businessmen should unite and strive for the change of the low quoted price, and strive to cooperate with the local operators and manufacturers in Spain to do the order business.

Since 2004, when Elche burned Wenzhou shoes, Lin Bin's Olin group has changed its competitive order from wholesale business.