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    Domestic Garment And Shoe Enterprises Face The Impact Of Zero Tariff Entry From 40 Countries

    2010/7/9 16:47:00 187

    Zero Tariff On Exported Shoes

       From July 1, Bangladesh exit 4721 kinds of Chinese export commodities such as leather and shoes enjoy zero tariff treatment


    A personage in the industry who did not want to be named said in an interview with the reporter of the Daily Economic News that Bangladesh has started to contract manufacture of leather products of internationally famous first-line brands, and the trend is rising year by year, while China is the largest market for Bangladesh's exports in East Asia. After the implementation of zero tariff, it is likely to have an impact on China's sportswear, leather and other footwear products.


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


    Industry insiders said that due to Adidas 、 Nike International famous brands such as Bangladeshi have procurement channels for factories in Bangladesh, and Bangladesh's production and manufacturing costs such as manpower are lower than China's. Many international first tier brands have shifted their procurement channels from China to Bangladesh. After Bangladesh implements zero tariff on China's exports, international famous first tier brands are likely to increase their procurement share in Bangladesh, This makes China's world-class brand foundry face challenges.


    According to the data provided by the Commercial Office of the Chinese Embassy in Bangladesh, the trade volume between China and Bangladesh in 2009 was 4.582 billion US dollars, including 4.441 billion US dollars of China's exports to Bangladesh and 141 million US dollars of imports.


    The reporter of the Daily Economic News learned that because Bangladesh's leather products are exported to European and American countries with low or zero tariffs, while China's exports to these countries are subject to 16.5% anti-dumping duties, Bangladesh is undoubtedly better than the mainland in terms of cost. After domestic shoe companies have changed leather products to non leather shoes, Bangladesh will undoubtedly gain huge export opportunities.


    Industry insiders said that in the past, the leather industry in Bangladesh was also regarded as a symbol of low-cost products in the minds of European and American buyers. In recent years, especially after the first tier international famous brands entered Bangladesh, the image of "low-cost products" is slowly changing. "This will have an impact on China's sportswear and export shoe industry."


    It is reported that Bangladesh's garment export industry is the industry that earns the most foreign exchange in the country. Bangladesh earned 12.3 billion US dollars in foreign exchange from garment exports in the 2008-2009 fiscal year (from July 2008 to June 2009), accounting for 79% of the total export earnings.


    Some insiders said that one way for Chinese leather clothing and shoes enterprises to avoid EU anti-dumping duties and avoid losses is to transit from Bangladesh.


    In response, the relevant person in charge of Aokang Shoes said in an interview with the Daily Economic News that their company currently has no leather export business with Bangladesh

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