The vast majority of Chinese footwear manufacturers will most
likely not file suit against an anti-dumping tariff from the
European Union as the deadline for litigation draws near, partly
due to what would be expensive, lengthy legal battles.
The European Union has imposed a 16.5 percent anti-dumping
tariff on leather shoes imported from China since October 7. Over
1,200 shoemakers were effected, though only four are fighting back
through lawsuits in the EU courts.
Two of these firms are Zhejiang-based enterprises, including
Aokang Group, the largest privately owned footwear manufacturer,
and Taima Shoes Group, the third-largest shoe firm in the province.
They are joined by two Guangdong-based companies: Golden Step
Industrial Co Ltd and Xinsheng Gangyuan Shoes Group.
Guo Weiwen, an official with another Guangdong-based company,
Apach Footwear, said that most small- and medium-sized enterprises
are trying to work around the tariffs.
"Most enterprises turn to other strategies such as adjusting
product structure and changing their export market," she said.
"Some of them even plan to recede from the EU market."
Wang Xuehua, a lawyer specializing in anti-dumping with the
Beijing Huanzhong Law Firm said that the high cost, complicated
legal procedures, and unpredictable result of suing has stopped
most enterprises from filing.
The legal procedure to counter anti-dumping charges can be very
time consuming, and "it is possible that the two-year period will
come to an end before the investigation is completed," said Wei
Yafei, a spokeswoman with the China Leather Industry
Association.
The four bigger players that are suing, however, feel they have
a case.
"The European Union's action does not follow the rules of the
World Trade Organization and the convention of the industry," said
Liao Yue, chairman of Taima, one of the companies taking legal
action. "They imposed tariffs on us without investigating my
company."
The two Guangdong enterprises that decided to file the suit,
according to Guo of Apach, were "the sample enterprises chosen by
the European Union during the investigation, so they have
experience in dealing with legal issues."
Shoemaker Aokang said it already handed its litigation materials
to the European court in Brussels and are waiting for reaction.
"We hope we can learn something from this case, and we need to
gain some experience for other enterprises in the future," said Wei
Kaimeng, a spokesman with Aokang.
(China Daily December 19, 2006)