EC Extends Anti-Dumping Tariffs On Vietnamese, Chinese Shoes

by Mary Swire, Tax-News.com, Hong Kong

29 December 2009

The European Council has adopted a regulation extending, for a further 15 months, the anti-dumping duty on imports into the European Union (EU) of footwear with leather uppers originating in China and Vietnam.

The anti-dumping duties, ranging from 9.7% to 16.5% in the case of China, and 10% in the case of Vietnam, were first imposed in October 2006 following an investigation confirming the existence of dumping and injury to EU producers.

Following an industry request, further European Commission (EC) investigations this year concluded that an extension of the measures was justifiable, and that they should continue after their planned expiry date.

The EC stated that its investigation had found that, in spite of the duties imposed, Chinese and Vietnamese-made leather shoes continue to be "dumped" in the EU market, and that, although the measures in place have partially dampened the effects of this dumping, this uncompetitive behavior has continued to cause significant harm to EU manufacturers, which are obliged to make significant efforts to adjust their business models.

In this context, it continued, the removal of measures at this stage could lead to increased dumping and injury, and potentially halt the adjustment process of an industry which employs over 260,000 workers in the EU.

In addition, the investigation did not uncover any significant adverse effects on consumers or distributors as a result of the duties.

However, in its recommendation, the EC proposed a 15-month extension – rather than five years, the maximum allowed by the rules – as the investigation had shown that the industry's adjustment process is well on track. This recommendation has now been accepted by the Council in its final decision on the matter.

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