Brazil extends anti-dumping measures to Chinese soles and uppers
06/07/2012
Companies importing these components from China will have to pay duties of 182%, the government has said, insisting that it wants to end the practice of “triangulation”, in which companies import all the components at cheap rages from China, sometimes via a third country, and assemble the finished shoes in Brazil. The government said it was acting with the approval of the World Trade Organisation.
Brazil has had in place since 2010 anti-dumping duties of $13.85 for each pair of shoes imported from China. Local footwear industry association Abicalçados carried out a study in October 2011 and concluded that Chinese manufacturers were using triangulation of components as a means of by-passing the measures. The study concluded that more than 60% of the raw material for some shoes being assembled in Brazil was imported, reducing the value-add that local manufacturing firms are able to offer the economy.
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