Wenzhou Shoe Meets Spain Again In New Deal To Restrict Low Price Shoes

Elche is the "shoe center" of Spain and Europe, enjoying the reputation of "the first shoe city in Europe".

It is in view of the favourable conditions of the day and the place that the smart Wenzhou people came to this place, or opened a shoe store or set up factories.

Because of China

Wenzhou shoes encounter "bad treatment" in Spain

In August 29th, Liu Guangzhong, President of the Spanish Chinese Footwear Association in Spain, and Lin Bin, President of Spain's Olin group, responded to the fact that Wenzhou shoes were once again hit by Spain. The Spanish government issued a new policy regulation for imported shoes, which was considered to be a heavy penalty when imported.

Although this policy is not specifically targeted at Wenzhou shoes, Wenzhou shoes are actually affected by this policy in the market because of the fact that Wenzhou shoes occupy more than 60% in the Spanish market. Several well-known Wenzhou shoe enterprises have withdrawn from the Spanish market last month.

According to Liu Guangzhong and Lin Bin, the main content of the new policies and regulations promulgated by the Spanish government is not complicated.

When the shoes are imported to Spain for customs declaration, the customs will compare them with the same or similar products in the customs catalogue according to the relevant types and materials of the shoes. If the prices of these shoes are lower than the customs catalogue, the goods will be seized and the relevant footwear dealers will pay the customs duties, VAT and the corresponding fine after the price is paid by the relevant footwear dealers before they can get the goods back.

It is this supplementary duty, value-added tax and fines that make Liu Guangzhong, Lin Bin and other Spanish Wenzhou shoe makers frightened.

Spanish footwear import tariff is 17%, value-added tax is 18%, fines are determined according to the amount of tax to be paid.

The price of Wenzhou shoes when declared in Spain is usually only 1 euro or even lower, while the prices in the Spanish customs catalogue often reach 4 Euro 5 euros or even higher.

Wenzhou shoe manufacturers in Spain are mainly concentrated in Elche, with a total of more than 80 companies.

However, only five or six of them do Spanish orders, all of which are wholesale business, accounting for about 80% of Wenzhou shoe manufacturers.

The biggest influence on this policy is the footwear dealer who reaches 80%, because the selling price of the order has been determined, and the wholesale business must be calculated on the price. Low price declaration is the most powerful means of price competition. Taking a pair of shoes worth 4 euros as an example, the quoted price is 1 euros, which can at least save 1.5 to 2 euros, and this is the great advantage of Wenzhou shoes and European shoes in terms of competitive price.

Lin Bin said that Wenzhou shoe makers have been subject to successive quotations, and a shoe dealer in Wenzhou has set a record of paying more than 30 thousand euros for taxes and fines, and 20 thousand for a container.

Now that Spain has yet to get out of the financial crisis, Wenzhou shoe makers have to sell 10 containers in the first quarter. The 10 containers will have to pay at least about 200000 euros, and the better the business, the better.

The Spanish government tightened customs quotations and surprised Spanish shoe makers in Wenzhou.

Liu Guangzhong said that over the past few years, the Spanish government has been very relaxed about the import quotas, and no such stringent measures have been taken.

Wenzhou shoe traders in Spain speculated that the Spanish government might be a "open source" means in the financial crisis.