Taxation on Chinese Shoe Imports

Companies from all over the world are taking advantage of the inexpensive labor that China is offering.  Some regard this as a positive learning factor for China, especially in developing their brands.  On the other hand, others argue China is dominating a large percentage of the market share in U.S. and European retail business, due to outsourcing.

The European Commission plans to impose a provisional tax on Chinese imported leather shoes, even though disagreements exist among the member states.  Decisions and exact details will be announced soon.   

The proposed tariff rate will start at four percent, then rise to 20 percent in October.  Sports shoes and children’s footwear are tax exempted, but China would still be affected by the proposed plan.  This is because leather shoes are the sector that China concentrates heavily on for exports. 

Italy is known for their designer leather shoes and protested that the tariff measures are not stringent enough.  Despite disagreements among the member states, the EU Commission will continue to examine the issue and find an agreement that is more satisfactory to its members.