Vietnamese leather shoes industry should be ready for administration review

18/06/2015 10:20 - 617 total view

What will happen with Vietnam-made leather-capped shoes after October 7, 2008? According to Lawyer Fabrizio Di Gianni from Belgium’s Van Bael & Bellis Law Office, who assisted Vietnam’s Leather and Footwear Association (Lefaso) in their anti-dumping lawsuit against Vietnam-made leather-capped shoes several years ago, there are three scenarios.First, the EC does not receive any proposals to undertake a review over the anti-dumping tax on Vietnam-made shoes from EU members, currently at 10%.Second, the EC receives proposals to undertake a review over the anti-dumping tax on Vietnam-made shoes, and it rejects the proposals, which means that it will not review the anti-dumping tax on Vietnam’s leather shoes products. The products will be struck off the EC’s list of items subject to anti-dumping taxesThird, the EC receives the proposals and it decides to undertake a review on the imposition of anti-dumping tax on Vietnam’s products.Any proposals for a review over the issue must be submitted by European shoe makers prior to July 7, 2008, or three months before October 7, the cut-off date when the decision on 10% anti-dumping tax rate expires.The lawyer said that the third scenario appears to be the most likely one to happen, which will result in the EC undertaking a review over the tax imposition.The aim of the review is to find out if, when the anti-dumping tax imposition finishes, this will cause future, continuous dumping activities which would adversely affect local, European shoe production.In general, after the review, the EC will release it’s decisions on whether to re-impose the anti-dumping taxes, or to cancel the tax imposition.It is very likely that a review will be carried out on Vietnam’s leather shoes industry, which will define new tax rates and a tax imposition duration, said the lawyer after considering the information, on European magazines. Lawyer Fabrizio Di Gianni has advised Vietnamese shoes makers to get ready for the review to become co-operative within the EC during the reviewThe lawyer said that Lefaso needs to collect information about a third country which has production conditions similar to Vietnam, from which Lefaso can provide evidence to the investigation agency for reference.If Vietnamese business cannot prove that they are running under a market economy organization, the EC will calculate the production cost of Vietnamese business by considering the production cost of business of a third country’s market economy.As eight of the Vietnamese business in the 2006 lawsuit could not prove they were running under a market economy management, Brazil’s footwear industry was chosen for reference, which caused disadvantages to Vietnam in the case.Vietnamese businesses should also consider asking for the co-operation of their European partners, so that the partners can bring pressure on EC’s tax imposition. European partners’ voices played a very important role in the 2006 anti-dumping lawsuit, in which the EC had to decide whether to apply the 2-year anti-dumping penalty on Vietnam’s products instead of a 5-year fine as usual.