EU probes shoe firms on dumping charges

EU probes shoe firms on dumping charges

JAKARTA (JP): A team from the European Commission is scheduled today to start its two-week investigation of eight footwear manufacturers which have allegedly sold their products in Europe at dumping prices, an industry executive said yesterday.

The executive director of the Indonesian Footwear Association, P.A. Pattinama, told The Jakarta Post at his office that the team will visit the companies, which are located in the greater Jakarta area and in Surabaya, East Java.

Pattinama refused to name the companies.

"The team will spend two days investigating each of the companies," he said, adding that the companies have long been prepared with all documents needed for the investigation.

Pattinama explained that 14 footwear companies are accused of dumping practices in member countries of the European Union in February last year. Five have strongly denied the allegations.

The products allegedly exported to the European countries at dumping prices include shoes made of leather and rubber for both men and women.

The commission sent questionnaires in the same month to eight of the companies.

Pattinama said the association has hired Brussels-based lawyers Oppenheimer Wolff and Donnelly to face the investigation.

"We hope the lawyers handle the matter well considering that they have close relationships with the European Community and that they have much experience in such cases," he said.

Pattinama said Indonesian companies can sell footwear products at cheaper prices than their European competitors because they have lower production costs.

"Certainly, we have to set competitive prices because we have to compete with other products from countries like China and Thailand," he said.

Pattinama said that a company, if found responsible for dumping practices, will have to pay dumping margin costs on top of import duties. (03)