Sichuan Shoe Companies Can Bypass ASEAN Exports

The leather shoes that were previously bought in Italy may also be produced in Chengdu, but it will not be possible after October 1st this year. Recently, the "Italy made" law of origin marks was finally approved by the Italy government and will be put into practice in October 1st this year. The regulations will enforce the sales mark of textile, footwear and leather products, and the regulations mentioned that the labels of all kinds of products must indicate the origin of products, which makes many Chengdu exporters of foreign brands.

Companies complain that costs will rise by 5%.

It is understood that the law stipulates that enterprises violating this regulation will be fined 50 thousand -7 euros, and enterprises with repeated violations will be fined for 3 years.

More than Italy is keen on this new means of trade protection.

Recently, it is also reported that the EU intends to enforce the label system of clothing country of origin so as to prevent consumers from buying the products of third countries originating from the EU without knowing it.

How will the origin indicate the impact on export enterprises?

"Not only label the origin, but also put forward higher requirements for dyestuff components and environmental protection technology."

Rao Ting, general manager of Chengdu red fruit clothing limited liability company, said that this is a hidden technical trade barrier. In order to enter the EU market, enterprises must invest nearly 20 projects to test. The total cost of the test cost is about 5%.

The average export profit of textile and garment industry is around 3%.

Peng Jun, director of the industrial operation center of the women's shoes capital of China, said that Chengdu women's shoes had been actively implementing market pformation after experiencing the Russian "big market" event. Now the European and American market has accounted for nearly 4 of Chengdu women's shoes exports.

No harm to the export, but the treatment is different.

Will the origin indicate whether the export of Sichuan will be affected?

In this regard, the provincial commerce department official said, clothing products accounted for about 10% of our province's exports, which is an important part of our province's exports, but indicating that the origin will not affect Sichuan's products to the international market, because the regulation is only required to indicate the source, and does not restrict imports.

However, marking the origin will make the export products different in terms of treatment.

In international trade, due to the different treatment of tariff and other trade measures, the origin of products is an important basis for deciding whether or not they can enjoy certain tariff treatment.

Especially in countries adopting anti-dumping, countervailing measures, trade sanctions and other trade measures, only by accurately judging the origin of goods, the trade measures they take can play a role.

Sichuan enterprises can bypass ASEAN exports

How can we bypass this trade barrier in an appropriate way?

In fact, the start of the China ASEAN Free Trade Area has opened another window for export enterprises.

According to the agreement on trade in goods under the China ASEAN Free Trade Area, if the local processing value of a product is not less than 40% of the total value of the product, the product can be regarded as a product originating from China ASEAN Free Trade Area, enjoying preferential tariff treatment in the import and export trade.

China's textile export enterprises can make use of the low labor cost advantages of Bangladesh and Vietnam to start processing trade in ASEAN. Some local sales, some of which are exported to the European Union and other countries in these areas, enjoy preferential treatment.