Dongguan Footwear Exports Fell 1.6% Last Year

Last year, 600 million pairs of shoes were exported, and the footwear industry faced challenges.

The reporter learned from the Whampoa customs Fenggang office that according to customs statistics, 600 million pairs of shoes exported from Dongguan in 2007 were 1.6% lower than the same period in 2006.

Exports to the United States accounted for 68.3% of the total. According to the introduction, 410 million pairs of shoes exported from Dongguan to the United States in 2007 dropped by 2.4%, but the United States still occupied half of the export market, accounting for 68.3% of the total exports. The value of exports was 1 billion 390 million dollars, an increase of 14.4%, accounting for 62.1% of the total export value of that period.

Last year, the export of footwear products in Dongguan was mainly processed trade, and the export volume of general trade mode decreased considerably.

During the period, 590 million pairs of shoes were exported by processing trade, accounting for 98.3% of the total export volume, and the export value was 2 billion 160 million US dollars, accounting for 96.4% of the total export value.

In the other period, 10 million pairs of shoes products exported by general trade decreased by 39%, with a marked decrease.

Exports are mainly foreign-funded enterprises, with 360 million pairs of shoes exported by foreign invested enterprises, accounting for 60% of total exports.

State owned enterprises export 140 million pairs of shoes and products, accounting for 23.3% of total exports.

Shoemaking enterprises are facing multiple tests to reduce the export volume of Dongguan shoes, and shoe manufacturers are facing multiple tests. Since July 1, 2007, the export tax rebate rate of China's shoes has been reduced from 13% to 11%, which has led to a reduction in profits of export shoe enterprises which have relied on national export tax rebates for a long time to maintain operation. In addition, because of the continuous rise of the RMB exchange rate, the increase of shoemaking costs, and the detection and registration costs brought by technical barriers, shoemaking enterprises have to think about the decline in the number of shoes exports and the increasing cost pressure at the same time.

At the same time, anti-dumping trade barriers are frequent, and export trade environment is not good.

The EU has imposed a 16.5% anti-dumping duty on leather shoes in China for two years since October 7, 2006.

Taiwan has decided to impose 43.6% provisional anti-dumping duties on leather shoes and rubber faced shoes originating in the mainland since March 16, 2007.

From the end of May, the import tariff of shoes increased from 20% to 35% in Brazil.

The frequent occurrence of anti-dumping barriers also poses a severe test to shoemaking enterprises, and the export trade environment is not optimistic.

In addition, the European Union is investigating whether there is a re export trade between the third party products that are exported to Malaysia and Macao and then pshipped to Europe. The customs suggest that Dongguan shoe export enterprises should actively create their own brands, increase their added value and enhance their core competitiveness; develop new markets to reduce excessive dependence on the US and European markets and disperse export risks; they should also adapt to international standards as soon as possible, use raw materials with safety and non-toxic side effects, adopt high new technologies and production processes, and reduce the losses caused by trade friction.

At the same time, shoe companies should also focus on the relevant findings of the EU and make preparations for them.