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    Domestic Footwear Enterprises Face The Impact Of Zero Tariff Entry From 40 Countries.

    2010/7/9 16:47:00 57

    Zero Tariff On Export Shoes

       Bangladesh began in July 1st. Exit China enjoys zero tariff treatment for 4721 kinds of export commodities, leather and footwear.


    An unnamed insider told the daily economic news that Bangladesh has begun to produce international famous first-line brand leather products, and it is increasing year by year. China is the largest market of East Asian exports in Bangladesh. After zero tariff, it will be likely to impact on Chinese sports apparel and leather shoes.


    It is understood that Bangladesh's leather has a good reputation in the international market due to its excellent quality. Leather and its products earn more than US $200 million per year for Bangladesh. It is the fourth largest export commodity in Bangladesh besides textiles, clothing, frozen food and jute and products. The leather industry also plays an important role in the national economy of Bangladesh.


    Insiders say that Adidas , Nike Internationally renowned brands in Bangladesh have set up procurement channels for their factories in Bangladesh, and Bangladesh's manufacturing costs such as manpower are lower than those of China. Many international first-line brands have shifted their purchasing channels from China to Bangladesh, and Bangladesh has imposed zero tariffs on China's exports, and internationally renowned first-line brands are likely to increase their share of procurement in Bangladesh, making China's world-class brand representative factory facing challenges.


    According to the data provided by the business office of the Embassy of China in Bangladesh, the trade volume between China and Bangladesh in 2009 was US $4 billion 582 million, of which China's exports to Bangladesh amounted to US $4 billion 441 million and imports amounted to US $141 million.


    "Daily economic news" reporter learned that, because Bangladesh's leather products exported to Europe and the United States are low tariffs or zero tariffs, and China's exports to these countries will be charged 16.5% anti-dumping duties, Bangladesh is undoubtedly superior to the mainland in terms of cost. After the domestic shoe companies have changed their leather products to non leather shoes, Bangladesh will undoubtedly get huge export opportunities.


    Insiders said that in the past, Bangladesh's leather industry was also regarded as a symbol of low price products in the hearts of European and American buyers. In recent years, especially after the introduction of the famous international brands into Bangladesh, the image of "low price products" is changing slowly. "This will bring impact to China's sportswear and export footwear industry."


    According to the introduction, Bangladesh garment export industry is the most profitable industry in the country. In the 2008~2009 fiscal year July 2008 (June 2009 to June 2009), foreign exchange earnings from garment exports amounted to US $12 billion 300 million, accounting for 79% of total foreign exchange earnings.


    Insiders say that China's leather clothing and footwear enterprises should avoid EU anti-dumping duties, and one way to avoid losses is to re export from Bangladesh.


    Regarding this, the relevant person in charge of AOKANG Footwear Company told the daily economic news reporter that their company has no export business with Bangladesh in leather at present. "Unless some specialized middlemen are exporting, they may take this approach."

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