EU Formally Launches Anti Circumvention Investigation On Chinese Shoe Enterprises

A few days ago, the European Union launched an anti circumvention investigation on China's leather shoes and "bypass" Macao's re exports to Europe. This is another severe test for China's export footwear industry after the EU, the Chinese shoe companies and the anti-dumping duties.

According to the provisions of the EU anti-dumping law, if the export of leather shoes exported from the mainland to the EU has been circumventing by Macao, the products will be subject to anti-dumping duties.

China Chamber of Commerce for import and export of light industrial arts and crafts indicates that the anti circumvention investigation is no less effective than the anti-dumping investigation on the enterprises, and the enterprises involved should actively prepare for responding.

The anti circumvention investigation means that after investigating anti-dumping measures taken by the authorities, some enterprises concerned will export to the country of investigation through third places after processing or assembling the goods in order to circumvent anti-dumping measures.

If the investigation authorities find such a situation, an anti circumvention investigation may be launched to ensure the continuous effectiveness of anti-dumping measures.

In the past few years of the anti-dumping war, China's shoe-making enterprises have not given up their efforts.

In July 7, 2005, the European Union launched anti-dumping investigations on Chinese leather shoes, sports shoes and footwear.

By the end of April 2006, after the efforts of the footwear industry alliance composed of more than 100 enterprises, the EU lifted the quota restrictions on Chinese footwear products, the anti-dumping duty rate dropped from 19.4% to 16.5%, and the anti-dumping period was also reduced from 5 years to 2 years.

Ministry of Commerce: EU hopes to handle cases related to China's footwear industry cautiously

In response to the EU's anti circumvention investigations launched against Chinese shoes, the commerce ministry officials said today and strongly opposed it as a continuation of the EU's footwear and anti-dumping incidents against China.

Cheng Yongru, director of the import and Export Fair Trade Bureau of the Ministry of Commerce, said that footwear products are highly concerned about Sino EU trade. The EU's anti-dumping on Chinese shoes is neither conducive to China nor to the EU, and it is a double lose relationship.

We hope that the EU will take prudent measures in anti circumvention investigations to avoid negative impact on China EU relations. We will pay close attention to tracking this case and follow the EU's investigation process strictly in accordance with the WTO agreement.

Cheng Yongru said that the EU launched an anti circumvention investigation on Chinese shoes, based on its anti circumvention law, but the WTO law has no relevant provisions.