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)