Experts suggest that Sichuan shoe companies bypass trade barriers to avoid trade barriers
Previously marked "Made in Italy" shoes made in Chengdu can smoothly enter the European market. However, the text of the "Made in Italy" country of origin logo was finally passed by the Italian Senate. From October 1st onwards, all types of products exported to Italy, such as the textile industry, footwear, and leather products, must identify the origin of the product. At the same time, it must provide for the processing procedures and hygiene standards that must comply with current regulations. Companies that violate the regulations will be fined 50,000-70,000 euros, and companies that repeatedly violate regulations will be suspended for three years. The EU also plans to develop a labeling system for country of origin.
This trade technical barrier has made it more difficult for exporters. Experts suggest that companies should bypass the road.
Sichuan Enterprises' Cost Will Increase by 5%
"Not only is the production area required to be marked, but also the company's dye composition, environmental protection technology, etc. will also put forward higher requirements." Rao Ting, general manager of Chengdu Hongguo Garment Co., Ltd., said that this is a hidden technical trade barriers, not only increase the burden on enterprises It also increases trade risks. In order to enter the EU market, companies must invest funds to do nearly 20 project tests. "Even if a test fails, the product has the risk of being recalled." It is reported that the test cost accounts for about 5% of the total cost of apparel companies, while the Sichuan textile and apparel industry's average export profit is about 3%.
Although there is no direct effect on the export of the place of origin, there will be differences in the treatment. In international trade, due to the current discriminatory treatment of tariffs and other trade measures by various countries, the origin of products is an important basis for deciding whether they can enjoy certain tariff treatment. Especially in countries that adopt trade measures such as anti-dumping, countervailing, and trade sanctions, only the exact origin of the goods can be judged and the trade measures they take can play a role.
According to the data released by the Ministry of Commerce, as of March 31 this year, there were 152 EU trade remedy measures against China, including 149 anti-dumping cases, 2 safeguards, and 1 special protection. As early as last year, when the Italian House of Representatives drafted the bill, most of the congressmen believed that the passage of the bill would provide Italy with about one million jobs.
Bypass Free Trade Zone Exit
The province's exports to Europe are mainly light textile products, and apparel products account for more than 10% of our province's exports.
How to avoid this trade barrier by appropriate means? Foreign trade experts said that the free trade zone exports can be used. The rules of origin of the Free Trade Zone are based on "value added standards." Taking the provisions of the China-ASEAN Free Trade Area Agreement on Trade in Goods as an example, if the local processing value of a product is not less than 40% of the total value of the product, the product can be considered as originating in the China-ASEAN Free Trade Area. Products can be regarded as local products. Trade in the free trade zone can enjoy preferential tariffs or even zero-tariff treatment.
Nowadays, China has signed agreements with ASEAN, Chile, Pakistan, New Zealand, Singapore, Peru and other countries and regions for free trade zones. That is to say, exporting to these regions and countries can enjoy the certificate of “origin†when enjoying the certificate of origin. Preferential tariffs.
According to data provided by the Provincial Entry-Exit Inspection and Quarantine Bureau, from January to May this year, Sichuan enterprises applied for 6846 certificates of origin, involving an amount of about RMB350 million, which was an increase of 22.51% and 33.79% respectively. The person in charge of the bureau said that this shows that Sichuan's export enterprises have strengthened their awareness of using "origin" policy.
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