Brazil Restrictions On Chinese Shoes: China'S Manufacturing Needs To Be Changed To "Create In China"

Brazil restriction

Made in China is despised.

Brazil has imposed restrictions on Chinese shoes and has imposed anti-dumping duties on them.

Brazil's restrictions on Chinese shoes reflect the bottleneck of China's underdeveloped technology.

To improve the popularity of Chinese products, improve the quality of Chinese made products, and actively respond to anti-dumping, China needs to create changes to China.

Brazil limited the background of Chinese shoe news:

After 9 months of investigation, Brazil decided to levy a 182% anti-dumping duty on imported shoes in China.

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.

The 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 that Brazil has extended anti-dumping sanctions against Chinese goods this year.

Brazil's sanctions against Chinese footwear began in 2008 when Brazil tried to use Italy as an alternative country, but Italy's footwear industry 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.

But according to Brazil,

Circumventing its sanctions in 2010, it is necessary to increase the intensity of the levy and collect taxes 182% per pair.

Brazil believes that Chinese shoe companies export their footwear parts to Vietnam and Indonesia, then assemble them in these countries, and then export 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 believes that the strong evidence for Chinese shoe companies to circumvent their 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 more than 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.

But there is no way out. Chinese shoes enterprises directly to Brazil domestic factory is a good way to bypass its restrictions. If China wants to pfer the parts of the shoes to the factory of Brazil, the value of Chinese spare parts can be reasonably circumvented 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.