Brazil Decides To Levy 182% Anti-Dumping Duty On Imported Shoes.

After 9 months of investigation, Brazil decided to make a decision about China.

Levy 182% anti-dumping duty.

Since the anti-dumping duty was imposed in 2010, Brazil has tightened its restrictions on Chinese footwear again. According to Brazil's statement, Chinese shoe companies have circumvented their previous sanctions, and this time we need to increase sanctions.

Brazil Footwear Association said that in the first 4 months of this year, Brazil imported 15 million pairs of shoes.

China is the largest importer in Brazil, a total of 7 million pairs, worth 29 million US dollars.

This is the second time this year that Brazil has expanded its commodities to China.

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Brazil pair

The sanctions began in 2008, when Brazil tried to use Italy as an alternative country, but Italy's shoemaking was at a high level, with a high price, averaging 31.96 US dollars / pairs, while the average price of Chinese shoes was 5.97 dollars / double.

In 2010, Brazil decided to impose an anti-dumping duty of $13.85 / double on imports of footwear from China for a period of 5 years.

That is to say, every pair of shoes exported to China by Brazil will increase by about 100 yuan.

However, according to Brazil's view, Chinese shoe companies have circumvented their sanctions in 2010, so this time we need to increase the intensity of the tax and collect 182% tax per pair.

Brazil believes that Chinese shoes have been exported to Vietnam and Indonesia by export to Vietnam and Indonesia, and then assembled in these countries, and then exported to Brazil to avoid sanctions.

Another way is that China directly exports footwear parts to Brazil, and then sews and sells them in Brazil.

Brazil thinks

The strong evidence to circumvent its sanctions is that the Ministry of foreign trade and industry protection of the Ministry of industry and trade of Brazil found that after the sanctions were imposed in 2010, China's footwear imports accounted for over 60% of the raw materials used by the footwear industry, not exporting finished shoes, exporting footwear components, and then completing the final production in Brazil. The large number of imported Chinese shoes offset the original anti-dumping effect on Chinese shoes.

What will be the impact of this aggressive sanction in Brazil? Levying 182% of anti-dumping duties is a big burden for Chinese shoe companies. Is there any way to avoid Chinese shoe companies?

What is the impact of Brazil's 182% anti-dumping duty on China's shoe enterprises? It is known that in Wenzhou, over 1200 footwear export enterprises, the Wenzhou footwear enterprises exported to Brazil market are only single figures, and the export volume is about tens of millions of dollars.

After Brazil tightens restrictions, the shoe companies may abandon the Brazil market and thus have limited impact.

But Fujian is not so lucky. Fujian's exports to Brazil account for 50.3% of the country's total, followed by Guangdong and Zhejiang, accounting for 20% and 15.7% respectively.

If Brazil increases tariffs and limits Chinese shoes, these shoes may not be exported to Brazil later.

Is there no way to circumvent the sanctions imposed by Brazil? The Ministry of Commerce has pointed out that once it is considered evasive action, the enterprises will pay punitive tariffs according to the anti-dumping duty rates they have previously identified when exporting products to third countries.

However, there is no way out. Chinese shoe manufacturers directly build factories in Brazil is a good way to circumvent their restrictions. If China wants to pfer parts of shoes to Brazil factories to assemble, it will be reasonable to circumvent the value of Chinese components only in a certain proportion.

All in all, the reason why Brazil imposed restrictions on Chinese shoes and levying 182% anti-dumping duties on Chinese shoes is that the Brazil government believes that China has circumvented its sanctions.

However, it is not difficult to avoid the restrictions on Chinese shoes, which are excellent and cheap, and have great advantages.

Brazil's restrictions will only hurt its domestic consumers and hurt Chinese shoe companies.