Transhipment deals threaten Indonesian footwear in - footwearbiz: Lead

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Transhipment deals threaten Indonesian footwear industry

20/04/2006

Concerns have been raised by the Indonesian Footwear Association over transhipment deals being offered to ailing local producers by Chinese footwear manufacturers.

According to Edi Wijanarko, head of its East Java Branch, some Indonesian shoe producers had been offered lucrative fees to re-export products to Europe and the US with new Indonesian labels as Chinese producers seek to avoid anti-dumping tariffs on footwear exports.

Mr. Wijanarko claims that the large fees offered by the Chinese producers could be extremely tempting to local footwear producers who have endured severe financial difficulties as a result of Chinese and Vietnamese competition.

He has urged the government to act against those involved in transhipping and to ensure that Indonesian certificates of origin are not issued for Chinese products.



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