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AOKANG Shoes Defense EU Anti-Dumping: 6 Years 5 Million Litigation Costs

2012/12/3 21:42:00 31

AOKANG Shoe Industry Wenzhou Shoe Enterprises AOKANG Shoe Industry Defense EU Anti-Dumping Chinese Leather Shoes

AOKANG 6 years' debate /p >

this is the second good news of this year's "a href=" http://www.91se91.com/news/index_c.asp > AOKANG shoes industry < /a >.

sales in 2011 were close to 3 billion and net profit was 450 million.

AOKANG is also constantly adding new direct stores and subdivision brands. This seems to be a case of not bad money, but nearly 5 million of litigation costs remain unmatched by ordinary businesses.

In November 15th, the Beijing High Court issued a verdict, ruling that the interpretation of certain provisions of the EU anti-dumping law related to AOKANG's EU leather shoes measures was correct and overturned the first instance ruling made by the ordinary court of the European Union. The high court held that the first instance decision was not appropriate.

In the long 6 years of safeguarding rights, AOKANG finally won the plea of EU anti-dumping.

The result of "P" and "6 years late" has been placed high hopes for countless times.

AOKANG was not the first company to win anti-dumping. After that, in November 27th, the European Commission decided to cancel anti-dumping duties on lighters imported from China. The lighter industry and the dumping tax had struggled for 20 years, so that the industry became a sunset.

clothing industry is bigger than the lighter industry for the regional economic pillar.

The news of winning news brought inspirational samples to the clothing industry in Wenzhou and Dongguan, but in the bad environment of tax rebate, exchange rate and profits, how can a company survive the cold winter in order to fight on a larger battlefield?

strike /p >

on the day of July 8, 2005, most employees of AOKANG shoes got the message of "anti-dumping duty" from the Internet. The EU wanted to investigate anti-dumping cases on some Chinese leather shoes. The blockbuster also appeared on the front page of the Ministry of commerce website on that day.

no one is caught off guard.

At that time, the a href= "http://www.91se91.com/news/index_f.asp" > AOKANG shoes < /a > 80% of the products were sold to the European Union, while the clothing and leather industry in Wenzhou and Dongguan did not feel the cold winter at that time. The voice of China's manufacturing pformation was not as high as it is now, and the word "anti-dumping" is three words so loud and clear.

the news was released in the morning, and the disturbing result was quickly realized that whether the EU customers would cancel the order.

At noon on that day, Li Haijun, who was responsible for the docking of AOKANG shoes with foreign customers, received an e-mail. A customer from the European Union wrote in her letter: she is very opposed to the EU's practice and is willing to deal with anti-dumping with AOKANG.

although the customers from European markets expressed their opinions and confidence with anti-dumping, in 2006, the anti-dumping campaign also frustrated the EU footwear industry as the first export market in the European Union, and the order from the European Union plunged 40%. This caused a serious blow to the footwear industry in Wenzhou, which accounted for five of the total export volume of Zhejiang Province, which was three strong in Wenzhou.

hope to be sent to AOKANG, which was founded in 1988 by Wenzhou footwear company.

Since 2001, it has been engaged in foreign trade business. At the beginning, OEM orders for scattered foreign trade were gradually enlarged. The price advantage made by China and the effect of industrial clusters made AOKANG win easily among a group of international competitors.

at that time, AOKANG shoes industry, the largest cooperative customer in the European Union was Italy's GEOX. Although in 1999, AOKANG co operated with Italy designer mano and opened a chain store with pnational operation in New York, but GEOX's contribution could not be overlooked. The company directly sent dozens of factory managers from all over the world to AOKANG and improved its production technology and process.

but at the moment, the European Union's anti-dumping regulations almost push AOKANG into a desperate situation. All leather shoes in China will be included in the EU anti dumping blacklist except for the leather shoes, ski boots and sports shoes / boots. The case is based on the manufacturing cost of $35 for each pair of shoes in Brazil. China's export price far below this level is suspected of dumping.

AOKANG quickly realized that the import cost of GEOX and other customers would increase without any reason.

resistance. This is the first reaction of Wang Zhentao, chairman of AOKANG shoe industry, after receiving the news.

In addition, he was shocked and puzzled by all the owners of shoe companies in Wenzhou.

in fact, the EU has been able to follow the case of < a href= "http://fz.sjfzxm.com/" > China's commodity anti-dumping "/a >.

Wang Zhentao and his team first thought of the anti-dumping investigation of lighters in Wenzhou 3 years ago. In the battle of 2002, 15 cigarette makers joined hands with the European Union to put forward "industrial non injury defense".

They unified the lawyer who hired the respondent and set up the responding team, and won the first case of EU anti-dumping for Chinese lighters in 2003.

the warm up effect of AOKANG has seen a glimmer of hope for the anti dumping campaign, and there is still time. The EU will not announce the arbitration results until October 2006, but for AOKANG shoe industry and Wenzhou shoe and leather industry association, there is not much time in a year.

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speech

Experience is extremely scarce for AOKANG shoe industry. Although the success of the lighter industry has been exemplary, the difference between its operation mode and the clothing industry has led AOKANG to explore on a new battlefield. In the first year's anti dumping campaign, AOKANG director Wang Zhentao almost used the "speech" to fight against the European Union, which was called "injustice" but a law rule. In October 7, 2006 a year later, the EU officially launched a 16.5% anti-dumping duty on leather shoes originating in China for a period of two years.

this series of seemingly helpless "protests" began in May 18, 2006 - the EU anti-dumping "six party talks" was held in Bishan, Chongqing, China's West shoe capital.

Wang Zhentao, the representative of 100 shoe enterprises, issued the first China protest against the EU Declaration on footwear anti-dumping. Then, on May 22nd, in Brussels, the anti dumping hearings on shoes for China were held in Chongqing. AOKANG's "protest group" protested against the EU's unfair anti-dumping decision on Chinese shoes. The price of Chinese leather shoes exported to the European Union is very high, and it does not constitute anti-dumping at all. This is an unfair decision made by the European Commission to protect its own industry.

and in June 15th, Wang Zhentao went to Spain to participate in the footwear industry forum in the city of Spain. His identity is the sole representative of Chinese shoe enterprises. At that forum, Wang Zhentao's keynote speech was "promoting exchanges and cooperation and win win -- creating a new prospect for the development of Chinese and western footwear industry". When this time, the speech was even seen as a bargaining chip for Chinese shoe enterprises to win the EU anti-dumping final ruling.

At P, Wang Zhentao was confident in facing reporters.

"we always believe that their laws are objective and fair"; in fact, we have noticed some international voices and have affirmed AOKANG's behavior.

This has made us more confident.

From these voices, we also see the justice of the international community.

believing in the power of speech, AOKANG's voice in the world has been concerned for some time.

At the end of 6, Wang Zhentao went back to the European Union to make a defense.

Later, the European Union's arbitration results made this speech intense speech a successful performance, but the final result was that Wang Zhentao was invited to a beautiful park to eat - to eat for his speech.

P, AOKANG and Wang Zhentao, who are silent, are constantly rushing around and lack of international legal awareness. AOKANG has become a company that advocates rights protection. The wording is severe again and again, but it can not convince Europeans who rely on the law.

At that time, compared with the tight time and no way of safeguarding rights, AOKANG's internal market had not been affected too much. The order volume of GEOX has not dropped. Some of the orders with high technology and high technology are still placed in AOKANG. The pfer to other countries is only p orders with low technological requirements.

But after all, AOKANG accumulated several decades of capital and technology. Compared with it, a large number of a href= "http://pop.sjfzxm.com/popimg/fz/index.aspx" > Wenzhou shoes enterprises < /a > are constantly consuming their own nutrients in the field of anti-dumping, and the pace of progress is even slower.

"from the point of view of damage identification, the EU is not quite in line with the WTO regulations, nor is it in line with its own anti-dumping law."

He is the attorney for the AOKANG shoe industry's anti dumping attorney, Pu Ling Chen, who is the defense counsel for the first case of China's lighters winning the WTO Antidumping Case. It is also the first successful case of Chinese enterprises in the anti-dumping case, the attorney for Yunnan Malone yellow phosphorus anti-dumping case.

But in fact, at that time, Wang Zhentao had not studied the legal aspect, and the speech was successful, but it did not stop the arbitration of the European Union.

law .

The speech "P" made AOKANG a silent minority. However, the arbitration result affecting more enterprises is also constantly fermented.

The European Union formally launched a two-year anti-dumping duty on leather shoes originating in China, and the total number of enterprises involved in China reached more than 1200.

and a paper arbitration result also allowed Wang Zhentao to rethink the way of arguing.

He began to understand that the speeches and wording may be able to impress people in dealing with European governments, but the law has the most convincing effect. "Law by law" is the next goal of AOKANG and Wenzhou shoe enterprises.

December 28, 2006, the appeal materials of AOKANG footwear, Tamar footwear, footwear industry and new HK $four footwear industry have been formally submitted to the European Union Court in Brussels.

The European Court has also formally accepted the litigation request from Chinese shoe companies.

"formal acceptance of a lawsuit is only the beginning of a long lawsuit. After the initiation of the proceedings, the European Commission and the Chinese enterprises will carry out two rounds of written defense in turn. After the conclusion, there will be another round of oral defense. Finally, the European Court will make a ruling on this basis.

The written reply time of each round should be between 3 and 5 months.

It is estimated that a set of procedures may take about 2 years.

Pu Lingchen said.

The lawsuit time of "P" for more than two years has been prohibitive for most shoe companies. Earlier media reports showed that many shoe companies thought that "two years' lawsuit has not yet been completed and the tax time may be over". This may be a lawsuit that is doomed to no win, but in AOKANG, arbitration may be postponed to five years after two years, but the market after five years is unpredictable.

"P", which also made AOKANG's argument a single play with few partners.

Perhaps because of the sense of responsibility, Wang Zhentao always thought that if he could not win the lawsuit, he would not be able to continue his business in the European Union.

in fact, a href= "http://www.91se91.com/news/index_x.asp" > AOKANG < /a > has gained high-level support on the way of safeguarding the rights of the law.

The Ministry of Commerce said, "respect and support domestic shoe companies to appeal to the European Court of justice", while the EU ambassador to China Sai day amber said, "Chinese shoe companies are suing the EU for proper conduct".

Some Chinese shoe and leather enterprises decided to adopt legal means to express their appreciation and appreciation to the European Union's anti dumping measures against the European Union.

in the midst of legal proceedings, the actual result of the European arbitration agency is also constantly expanding in Wenzhou shoe enterprises.

According to the data provided by AOKANG shoe industry, only second months after the announcement of the arbitration result, Wenzhou exported 430 pairs of leather shoes products to the EU, 2 million 437 thousand and 800 pairs and 21 million 470 thousand and 900 US exports, which decreased by 32.71%, 37.80% and 19.80% respectively compared with the same period in 2005.

Less than P, what worries most shoe manufacturers is that most SMEs have been unable to receive orders since the fourth quarter of 2005.

the remaining time is maintained.

Millions of attorneys' fees have become the voices of voices in recent years.

And the 3 companies that fought alongside AOKANG have already given up litigation.

In October 2008, the European Union announced an extension of 15 months after the review of the anti-dumping period.

for AOKANG and Wang Zhentao, this is undoubtedly a great blow.

Even lawyer Pu Ling, who is in charge of litigation, can not remember how many times he traveled between Europe and China.

Once the legal seesaw war is launched, it is more rational and longer than speech.

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odds > /strong > .

In November 20, 2009, the head of AOKANG footwear industry's foreign trade personnel received the call from the director of the office of the China Leather Association, Wei Yafei. Most of the member states of the European Union opposed the extension of the anti-dumping duty. P

this is good news for AOKANG.

In Wenzhou, the news also saved many shoe companies.

Among the 27 member states participating in the discussion, 15 countries opposed the plan to extend anti-dumping duties, 10 countries supported and 2 countries abstained from the P.

This means that the proposal has been rejected.

P, but the bad news is coming. After that, the EU Council of ministers, regardless of the opposition vote, will extend the anti-dumping duty on leather shoes produced by China and Vietnam for another 15 months, which will be announced in January 3, 2010.

In March of next year, the European Court of justice rejected the claim of 4 Chinese shoe companies such as AOKANG.

"in calculating the magnitude of damage, the practice of the European Commission actually violates the first article of the European Union's anti-dumping regulations. When commenting on the measures adopted by the European Commission to change the way and method of calculation, the European Commission gave the Chinese enterprises an unreasonable time (5 days), and it did not meet the 10 day deadline stipulated by the regulations," Pu Ling said.

According to these doubts, AOKANG continues to appeal to the Supreme Court of the European Union for its review of the trial procedure of the lower court. P

In June 2010, AOKANG decided to continue appeals to the EU high court, and the other 3 shoe companies had to give up.

In the next two years, in March 2011, the EU formally abolished anti-dumping duties on Chinese leather shoes, and in November 5th this year, it overturned the first instance ruling made by the European Court of common law. AOKANG won the defense of EU anti-dumping.

Less than P, 6 years of litigation, from speeches to lawsuits, AOKANG has not been hit hard.

In fact, in March 2011, the GEOX orders for AOKANG increased by 60%.

and as early as 2003, < a href= "http://xm.sjfzxm.com/" > AOKANG < /a > facilitated the cost advantage of the western region, and built the West China shoe industrial park in Bishan, Chongqing.

And to reduce labor costs in coastal areas.

In 2007, Dongguan also ushered in the relocation of AOKANG International (17.10,0.13,0.77%) R & D center.

At the same time, AOKANG also began to enter the high-end market, from the three line city to the front line, and subdivided the brand to open the exclusive store. P

Some women's shoes are even handled by Italy designers themselves.

Internationally, AOKANG set up a R & D center in the traditional shoemaking town of Victoria, near Milan, Italy. Designers and craftsmen were invited to collect Italy's new technology, new materials and new design concepts, and brought them to Wenzhou. They also invited designers who had design studio in the UK to collect the needs of European and American companies and collect information to bring them to the R & D department. P

At the end of April this year, AOKANG shoes held a listing ceremony on the Shanghai stock exchange and landed in the domestic capital market.

Its issuing price is 25.5 yuan / share, the corresponding P / E ratio is 25.25 times, the market value is 10 billion 225 million yuan, and its stores in various cities have reached thousands.

Chinese shoes encounter EU anti dumping memorabilia

June 30, 2005 and July 7th

the European Commission has launched an anti-dumping investigation on China's labor safety shoes and some leather shoes, including labor insurance shoes involving 52 million 550 thousand dollars and leather shoes cases up to 730 million US dollars.

end of November 2005

the European Union has completed the anti-dumping sampling inspection of 13 leather shoes enterprises and 4 labor insurance enterprises in our country. Among them, leather shoes hit the hardest hit area in Guangdong, and the labor shoes are Wenzhou's main part.

February 23, 2006 .

Mandelson, EU trade commissioner, said that since the survey showed that Chinese and Vietnamese leather shoes had been dumped to the EU at a price lower than their domestic production costs, the European Commission recommended that a temporary anti-dumping duty on Chinese and Vietnamese leather shoes be levied for half a year starting in April 7th. P

March 8, 2006 .

Wenzhou, Guangzhou and Quanzhou, the three major shoe producing base shoes and leather associations, have jointly established the "anti dumping response alliance" and issued preliminary position papers in Guangzhou.

March 12, 2006 .

Wenig, director of the EU trade and relief division, led a delegation in Hangzhou to communicate with the "a href=" http://pop.sjfzxm.com/popimg/xm/index.aspx "China shoes company" /a "P", indicating that although the labor safety shoes were suspected of dumping, they could consider loosening because they had little influence on the same industries in other countries.

March 16, 2006 .

the 25 European Union voted to decide whether to impose anti-dumping duties on leather shoes from China and Vietnam.

March 23, 2006 .

EU member states voted to levy 4.8% tariffs on all leather shoes exported to the EU from April 7th and increase to 19.4% by October.

October 7, 2006 .

EU has formally launched a 16.5% year anti-dumping duty on leather shoes originating in China.

October 2008 .

The anti-dumping duty of two years has expired, and the review has been completed. During the period, anti-dumping is still implemented.

January 2009 .

the European Commission's investigation team went to the Chinese shoe manufacturers such as AOKANG to conduct on-site field verification.

December 2009 .

the final meeting of the chairman of the European Commission voted to extend the 16.5% anti-dumping duty for 15 months.

It was implemented in January 2010.

April 8, 2010 .

the Chinese government appealed to WTO to set up an expert group's request for anti-dumping measures against China's leather shoes by the European Union, and formally launched the WTO dispute settlement expert group's hearing procedure.

March 16, 2011 .

the European Union announced that it had formally suspended anti-dumping duties on "a href=" http://cailiao.sjfzxm.com/ "Chinese leather shoes < /a" since March 31, 2011.