NEWS
Prodding the EU, Italy sets Oct. 1 for mandatory origin labeling
The Italian parliament has approved a bill imposing origin labeling for textile and leather goods, footwear and furniture marketed in Italy from Oct. 1, 2010. The delayed enforcement of the law is intended to give the European Commission time to decide whether to authorize it because it infringes its prerogatives. Unlike the present voluntary guidelines on labels of origin, the label prescribed by the new Italian legislation is set to include information on where various processing phases have been executed. The Italian employers’ association, Confindustria, has shown support for the principles behind the bill and indicated that it was interested in extending it to other sectors. But it stressed that the European Commission had to be notified before the law is enforced, as the manufacturing industry would suffer a severe prejudice if it were withdrawn or modified because it breaches EU legislation. The bill could prompt the EU to finally approve origin labeling for non-EU products as proposed by the European Commission in 2005, perhaps in a
watered-down format. Confindustria’s deputy chairman, Paolo Zegna, said the new Italian legislation has to find the support of other European countries and that previous supporters of mandatory origin labelling such as France and Spain might no longer be as keen to fight for it. The governments of Germany and other important countries have been opposed from the start. The Italian industry ministry pledged it would push for a rapid approval by the EU of mandatory origin labelling. Vito Artioli, president of the Italian
footwear association, Anci, and of the European shoe industry federation, CEC, described the bill as step forward in transparency for consumers and said the ultimate objective is to obtain mandatory pan-European rules on origin labelling. Manufacturers also have to indicate “clearly and concisely” that labour laws have been respected during all the processing phases. They also have to
mention that safety, health and environmental obligations have been fulfilled. Artioli said Anci supports the principle that at least two of the four processing phases defined by the law for leather shoes have to be carried out in the country for the product to continue to be labelled “Made in Italy.” It also agrees that shoes have to indicate where the other phases were executed. The new law grants the Italian government four months to issue the decrees for the enforcement of origin labeling and traceability. It also proposes that
the government should present within three months a set of rules to guarantee the quality of “Made in Italy” products. The criteria are scheduled to be updated every two years. The law sets the penalties for breaching the regulations includes fines and jail sentences for repeat offenders or those belonging to organized crime.
New action on anti-dumping duties in Europe and Brazil
The European Union's General Court, rejected an appeal filed by a number of footwear makers in China and Hong Kong requesting that it rescind the 16.5% anti-dumping duties levied on imports to the EU from China in 2006. The Luxembourg court rejected all five appeals, which said the duties were unfair. It called the duties a preventive measure to unfair trade practices, and ordered the appellants to pay their own costs and those of the EU in defending the action. China filed a complaint on Feb. 5 with the World Trade Organization; it is currently pending. Under WTO rules, China and EU have two months to work out a solution on
their own. If they cannot, the WTO will appoint a Dispute Settlement Panel that has the authority to make a final decision. The duties will expire again in May 2011, and this full process may not have finished by then. Meanwhile, the Brazilian government has raised the provisional duties it has imposed on a wider variety of shoes imported from China. The tariffs, which have been in effect for six months, will go up by 11 % to $13.85 per pair, irrespective of the import price, and remain in place for five years. A technical committee of the government had called for a duty of $18.74 per pair. The new anti-dumping fee, which comes on top of a regular import duty of 35 % , concerns all types of shoes except beach sandals, dance shoes, 100% textile shoes (upper and sole), snow boots and shoes for certain specific sports such as golf, cycling and boxing. The Argentinian government is now expected to apply restrictive
measures as well sooner or later. Brazil’s presence at the GDS show in Düsseldorf earlier this month paid off,
with more than $2.5 million worth of business there by 19 national producers coordinated by Abicalcados, the country’s shoe industry association. Brazil exported 1.7 million pairs worth $29.5 million to Germany last year.
www.shoeintelligence.com
6 • FOOTWEAR TODAY
• APRIL 2010
Anwr aims to improve retailers’ margins
Anwr Schuh, the shoe division of Ariston-Nord-West- Ring, reinforced its position as Europe’s largest buying group in the sector by raising the level of its centralized settlements by 0.9% to ¤847.9 million in 2009. They grew by 1.4% in Germany and by 2.9% in the Benelux countries, but dropped by 2.4% in Austria, by 2.5% in France and by 13% in Scandinavia. In Germany, the affiliated retailers enjoyed an average sales increase of 1.7%, including a 3.7% increase for the discount-oriented Quick Schuh concept. Year-on-year, the average sales increase rose to 18% last December.
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Is the Russian market coming back?
The 16% increase in the number of Russian visitors to the Micam show in Milan earlier this month augurs well for a likely turnaround of the important Russian shoe market. It fell last year by about 30% at the wholesale and retail levels, according to various industry observers, with the higher end being most affected. However, retail sales began to stabilize in September and have since been growing sharply, depleting inventories, thanks to more stable economic conditions and to much colder weather than in the previous winter.
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www.footweartoday.co.uk
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