Footwear imports from China, Vietnam under close watch Goods being re-exported via Kingdom to avoid EU anti-dumping duties

The Foreign Trade Department is closely monitoring footwear imports from China and Vietnam to protect against those countries using the Kingdom in order to circumvent anti-dumping duties in the European Union.

Director-general Chutima Bunyapraphasara yesterday said the Commerce Ministry had been forced to launch stringent monitoring of products from those countries due to the growing number of circumvention cases in the Kingdom.

In particular, China and Vietnam have exported shoes via Thailand to escape anti-dumping charges levied on them by the EU.

The department reported that some countries facing high anti-dumping duties elsewhere were also seeking to get round the problem by re-exporting their products from Thailand.

"The ministry will closely monitor imports of shoes from neighbouring countries wishing to reap the benefits of low export tariffs to the European Union. This practice could create problems for Thai footwear exports, as the EU may impose anti-dumping duties on Thai shoes as well," she said.

Shoe exports from China and Vietnam face EU anti-dumping duties of 16.5 per cent and 10 per cent, respectively.

To ensure Thai footwear exports do not face similar EU anti-dumping duties, the department will meet with shoe manufacturers and exporters to find a solution to the problem next Wednesday.

The department the same day will conduct a seminar to promote better understanding on raw materials used in shoe manufacturing under EU rules of origin.

According to the Department of Export Promotion, Thai footwear exports were worth US$405 million (Bt13.8 billion) in the first half of the year. The EU is Thailand's biggest export market, accounting for 42 per cent in value terms. The main kinds of footwear shipped are leather shoes and sneakers.

Previously, $20 million of tow trucks exported from Thailand to the EU faced an anti-dumping duty of 46 per cent after the EU found that major components were made in China and Vietnam.

The problem has added to the difficulties faced by exporters. Since the tow-truck case, the EU has stringently inspected goods exported from Thailand over concern about duty circumvention.

Germany has also called for the Thai government to closely monitor bicycle exports, again because of the danger of re-exporting products originating from China and Vietnam.

Other products about which the EU has expressed great concern over circumventing are electrical appliances, garments and toys.