RI shoe industry shaken by EU dumping case<\/p>\n
JAKARTA (JP): Indonesian companies may lose about US$400
\nmillion in export revenue next year with the European Union's
\nexpected countervailing duties on Indonesia's shoe exports
\nbecause of dumping there, the Indonesian Footwear Association
\nsaid yesterday.<\/p>\n
Association vice chairman Anton J. Supit said an investigating
\nteam from the European Union had concluded that about 14 footwear
\ncompanies in Indonesia had dumped their products on the European
\nmarket.<\/p>\n
The team, which sent a fact-finding mission to Indonesia last
\nyear, concluded that the 14 companies, which produced six kinds
\nof shoes with textile or leather and synthetic uppers, had
\npracticed dumping since 1990.<\/p>\n
The team has recommended that the European Union impose
\ncountervailing duties of between 2.1 percent and 31.7 percent on
\ntheir products sold in Europe.<\/p>\n
Import duties on shoes sold in Europe are now about 23
\npercent.<\/p>\n
The team recommended that other companies, making similar
\nproducts, which refused to be investigated last year, be subject
\nto 50 percent countervailing duties, according to Anton.<\/p>\n
The European Union antidumping commission will decide whether
\nto introduce the duties recommended by the team next month.<\/p>\n
Indonesian footwear exports are projected to be worth about
\n$2.8 billion in 1997, about 40 percent of which will be sold to
\nEurope. About 40 percent of the exports to Europe consist of
\nshoes with textile uppers and shoes with leather or synthetic
\nuppers.<\/p>\n
Anton said that aside from Indonesia, the European Union team
\nhad accused several footwear companies in China and Thailand of
\ndumping, and called for similar penalties against them.<\/p>\n
The association's members met yesterday at the Millennium
\nHotel to work out a strategy to cope with the dumping accusation.<\/p>\n
Anton said the association had hired a team of international
\nlawyers to defend Indonesian footwear exporters during the
\nEuropean Union antidumping commission's hearings. The Indonesian
\ngovernment is lobbying strongly to try to prevent the imposition
\nof the countervailing duties.<\/p>\n
Anton regretted that many Indonesian footwear companies had
\nrefused to meet the team on the assumption that evading its
\ninvestigations would protect them from dumping charges.<\/p>\n
\"Some other companies rejected the team of investigation
\nbecause they had bad accounting reports,\" Anton added.<\/p>\n
\"Now they will also have to pay on average 50 percent in
\ncountervailing duties simply because they refused to be
\ninvestigated by the team,\" he said.<\/p>\n
Anton asked all the association's members to assist dumping
\ninvestigations by importing countries.<\/p>\n
\"Today, global competition is so tight that some countries use
\ndumping charges to protect their interests. We have to face it
\nproperly and legally. Don't be afraid,\" he said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-shoe-industry-shaken-by-eu-dumping-case-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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