Brazil Has Stepped Up Restrictions On Imports. Shoe Companies In China Are Somewhat Annoyed.

A few days ago, the Brazil Foreign Trade Commission announced that after 9 months of investigation, it decided to levy an additional tax of up to 182% on semi-finished products and accessories from China.

This is the 2 year that Brazil has imposed anti-dumping duties on Chinese footwear since 2010, and once again tightened restrictions on imports of Chinese footwear.

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.

In October 2011, after receiving complaints from the local footwear manufacturers association, the Brazil government began anti-dumping investigations on imported Chinese shoes. The conclusion is that the increase in imports of Chinese shoes has accounted for over 60% of the raw materials used in the footwear industry, while the added value in the industrial production process is less than 25%.

No export of finished shoes, export of footwear parts, and final production in Brazil, the large number of imported Chinese shoes offset the original anti-dumping effect on Chinese shoes. Therefore, Brazil has to increase the intensity of its restrictions and impose 182% tax on Chinese shoe enterprises.

This new restriction will affect China's export to Brazil.

What's the impact? From the situation of sports shoes export enterprises in Putian City, Fujian Province, it is not very optimistic, which directly hinders the export of Putian sports shoes, especially the semi-finished products of football shoes.

It is reported that Putian is an important place for the export of footwear products to Brazil. In 2010, Brazil imposed anti-dumping duties on imported shoes from China, which had a serious impact on the export of local enterprises. Some enterprises, especially the football shoe manufacturing enterprises, were piecemeal, exported to half of the finished products or accessories to Brazil, and then finished in Brazil, so as to circumvent anti-dumping.

However, this practice has also received the attention of Brazil, and special measures have been introduced.

According to statistics, in 2011, Putian exported only 74 or 1 million 226 thousand dollars of footwear products to Brazil, excluding footwear semi-finished products or accessories.

According to the relevant persons of Putian inspection and Quarantine Bureau, the implementation of anti-dumping in Brazil has resulted in some enterprises in Putian currently suspend production and export orders for semi manufactured footwear exported from Brazil, which is difficult to estimate for subsequent orders, while Brazil anti-dumping may spread to other countries in the South America.

Fortunately, however, unlike Putian, Wenzhou, which is a major export destination for footwear, does not seem to be affected.

Xie Rongfang, executive director of Wenzhou shoe leather association, said that Wenzhou exported to Brazil had a very small number of footwear, accounting for less than 1%, and its export volume was around tens of millions of dollars, with little impact.

She expects that only after Brazil further strengthens the restrictions on the import of Chinese footwear, only a few Wenzhou footwear enterprises will probably give up the Brazil market.

The head of a trading company in Wenzhou also said that the company is preparing to gradually reduce Brazil's market share and move to other emerging markets.

In fact, most Zhejiang shoe enterprises have already given up the market in Brazil.

Hangzhou customs statistics show that between January and May this year, the export of Zhejiang leather shoes products to Brazil was zero.

Song Yiguo, director of the national footwear products professional group and the Wenzhou textile inspection and quarantine bureau director, said there were two main reasons leading to the export of Zhejiang leather shoes to Pakistan, the most important of which was the escalating anti-dumping investigation.

Next, people may be concerned about how to avoid these impoverished sanctions. Is there any effective solution? For this reason, the Ministry of Commerce has pointed out that once it is identified as evasive action, the enterprises will pay punitive tariffs according to the anti-dumping duty rates they have identified before exporting products from third countries to the target 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.