Footwear transshipment deals might affect local industry
14 Mar '06
1 min read
Chinese footwear makers have hit upon a new way to export their footwear products to the US. They tempt Indonesian manufacturers to reexport their goods under the Indonesian certificates of origin (COO).
However, Indonesian Footwear Producers Association (Aprisindo) has warned local producers and exporters against such offers from Chinese counterparts since such deals could have serious consequences for local industry.
Chinese manufacturers have started offering Indonesian shoe manufacturers handsome rates to reexport their goods to the US and Europe under the Made-in-Indonesian tags, informed Edi Wijanarko, Head of Aprisindo's East Java branch.
Edi also added that Chinese manufacturers were doing transshipment deals to evade antidumping duties imposed by the US and Europe against Chinese footwear products.
This practice would throw Indonesian manufacturers out of competition with China and Vietnam.
Moreover, the US has threatened to put premium import duties on Indonesian textiles entering the US market after allegations that some Indonesian textile and garment makers had been reexporting Chinese products.
Edi urged Indonesian government to take strict actions against those illegal transshiping footwear, and to ensure that the provincial offices of the Industry Ministry and Trade Ministry did not issue Indonesian certificates of origin (COO) for products made in China.
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