Wenzhou Shoes Continue To Experience Unexpected Events In The EU

Wenzhou shoes

However, in recent days, Liu Guangzhong, President of the Spanish Chinese Footwear Association in Spain, and Lin Bin, President of Spain's Olin group, responded to the fact that Wenzhou's shoes had encountered another wave in Spain. The Spanish government issued a new policy regulation for imported shoes, which was considered to be a heavy penalty when imported.

Although this policy is not specifically targeted at Wenzhou shoes, Wenzhou shoes are actually affected by this policy in the market because of the fact that Wenzhou shoes occupy more than 60% in the Spanish market. Several well-known Wenzhou shoe enterprises have withdrawn from the Spanish market last month.

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.

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.

Actually, Spain's "shoe burning incident" is not a simple case of Chinese Exclusion but a complicated economic background.

From January 1, 2005, the European Union will cancel the quota of some footwear products imported from China, which means that Wenzhou shoes will gain broader market space in Europe. But at the same time, the sharp contradiction between Wenzhou shoes and European shoes will inevitably burst in the fields of trade, culture and race.

Elche, Spain, is known as the "European shoes capital". However, after Wenzhou shoes entered Elche, it developed rapidly and formed an objective threat to the local shoemaking industry. The Wenzhou businessmen asserted that it would not be long before Spain and even the EU's shoe sales network could be "reshuffled".

It is for this reason that Wenzhou shoes are constantly encountering unexpected events in the European Union.