EU prosecute Chinese shoes "Customs fraud"

Editor’s note: The Chinese shoes by the European Union to impose anti-dumping duties for almost one year, Chinese enterprises seem to see the use of the opportunity to stand up international rules. However, the anti-circumvention investigation also appeared, the EU is trying to put shoes in China "Customs fraud" label.

Chinese leather situation in Europe, and the Chinese manufacturers in the world situation sample. In some countries, "demonizing" China-made environment, Chinese enterprises should learn how to use clear international rules, China can shake off the dilemma faced by manufacturers. (See related reports A5 ~ A8 version)

October 17, the EU anti-dumping on Chinese shoes arbitration results for the first anniversary of a sensitive time. In accordance with established practice, anti-dumping duty after the expiration of one year, Chinese enterprises will be re-apply for a tax cut, "win" opportunity, but now, this sudden opportunity for the rebirth of variables.

EU exports to Macao footwear enterprises are facing prosecute. EU doubts Chinese leather is "way," Macao’s exports to Europe, from the EU to circumvent anti-dumping investigations. The EU "anti-circumvention investigation" (also known as REACH bill) response, the prospects for the Chinese shoes again bewildering.

Strictly "Customs fraud"

Beijing small farming firm partner Chang told reporters: "This meeting initiated by the EU anti-circumvention investigation is mainly aimed at those who are anti-dumping measures, anti-dumping measures in order to circumvent the will of goods through a third country after processing or assembly exports to the survey, or directly to the country’s export survey then components to be assembled, or through a third country re-exports of enterprises. "

Journalists learned that this EU "anti-circumvention investigation" target Macao. From Guangdong Panyu a level boss told reporters shoes, shoes Macao enterprises are basically Mainland enterprises associated enterprises.

The current master of the situation shows that there are mainly two related performance, first in Macau is no production, but through improper means to obtain the certificate of origin or OEM; Macao is completed in two bonding process, or into shoes shipped to Macao, Macao completed only in the last part of the packaging.

In this way, the production of leather shoes from the mainland through Macau re-exports, as a third-party or labeling of origin, thereby bypassing the EU anti-dumping on Chinese shoes designed and imposed punitive tariffs.

However, in accordance with the EU’s identity or third country of origin labeling requirement, only in the local production of value-added products must achieve more than 25% of value to the EU recognized certificate of origin, it is clear that no matter what the situation is, it can not meet the EU’s standards.

"Indeed, the anti-circumvention investigation is the EU anti-dumping measures to ensure the continued effective means of mass destruction, will not only ensure that the current level of the Chinese shoes anti-dumping duties of 16.5% the continuing validity, but also may be involved in the transit country, assembly of parts or products involved in anti-dumping duty charges. "Chang lawyer told reporters.

An anonymous shoes level boss told reporters: "16.5% after the implementation of the anti-dumping tax, corporate profits have been negligible. Many enterprises involved in the original plan is barely support a year later, with the opportunity to review the EU’s anti-dumping tax rate lowered ride out the storm, It now appears that the Commissioner will hinder the desire of many. "

From bad "trade figures"

That path has always been very operate "hidden", "Macao’s re-exports," the EU is how to find what? In fact, this is not difficult to open EU trade figures enough to cause suspicion.

"In fact, the EU found to the problem is simple, from the bilateral trade figures can be easily seen. In the past year, China exported to Europe significantly reduce the number of shoes, and exports to Europe from Macau, the sudden increase in volume shoes. However, as we all know, Macau is not at the production base of shoes, the EU is very easy to judge a lot of shoes from the Mainland ’way’ of re-exports of Macao Europe. "Fair Trade, the Ministry of Commerce said.

In addition, the Sino-EU trade figures for the EU’s concern for a long time, from as high as 12 anti-dumping investigations, to this year’s textile quotas to "reverse", then to early September of citric acid and monosodium glutamate anti-dumping investigation, anti-dumping duties on energy-saving lights the continuation exception in the EU "Trade figures" stimulated to take up the anti-dumping big stick, and the "anti-circumvention investigation" is continuation of anti-dumping duty to exercise effectiveness of the measure.

Moreover, a quarter of this year, according to the figures, the EU has become China’s largest trading partner, China Shoes "production" and "export" also stable world first, these figures to stimulate the EU, in particular the EU competition enterprises sensitive nerves, they expect to save anti-dumping trade Ji means to adjust those figures.

"The EU’s anti-circumvention investigations targeting Macao enterprises, is not our understanding of mainland enterprises, therefore, if not adopted by mainland enterprises in Macao re-European approach to avoid anti-dumping duties, it would not be affected." The Ministry of Commerce and the Fair Trade Bureau Director CHENG Yong said. This clearly proves once again the "Macao’s export trade data triggered EU suspected" logic.

"However, the EU enterprises are worried that the anti-retaliation Chinese enterprises, so they launched in the name of the industry, but not like before, stand up and accuse directly the fault of Chinese enterprises (loss)." Fair Trade Bureau, the Ministry of Commerce told reporters.

Who the "fatal impact"

However, the large number of Macao enterprises in Mainland China is the actual shoes enterprises affiliated companies. "However, the need for a clear explanation of the problem is that these are not necessarily related enterprises exist avoidance behavior, some companies have set up in Macao formal processing factories, big production value, the shoes they produce more export to Europe is entirely consistent with the normal trade area." A shoe-making enterprises industry bosses told reporters.

In view of this, the Ministry of Commerce of Import and Export Fair Trade Bureau CHENG Yong and that the Commerce Department in the investigation that the EU might "hurt the innocent," so we have first investigation, to protect the mainland and Macao normal trade between the interest rate shoes. He also reminded, in Macao with the mainland shoe factory level to manage the original data and information to address verification.

The anti-circumvention investigation of whether China will affect the shoes by the EU level to review procedures for the adjustment of the anti-dumping tax rate, another one from the Ministry of Commerce said: "We should not have an impact, no ’circumvention’ of enterprises in the coming year, the EU still can the review procedures to apply for adjustment of the anti-dumping duty. "

"However, with ’circumvent’ Association survey of enterprises in the application approval time will be affected, even if no circumvention of the suspect, the EU strengthened review of the trend is inevitable."

As of this writing, the news from the Ministry of Commerce show that: "Although in previous enterprises that have launched a review of anti-dumping procedures, but so far no one formally apply."

"The crux of the matter is that we must clear accounting, initiated review of the costs incurred by the program, and reached the target of anti-dumping duty between how cost-benefit, which more favorable conditions for enterprises." A prospective review of shoes level boss said.