Import duty could be extended
An industry coalition has been formed to fight proposed EU taxes on children's footwear.

The group intends to lobby EU governments and consumer groups to stop an import duty on leather shoes from the Far East, which could rise to a maximum of 20 per cent, being extended to children's shoes.

The campaign group comprises the British Retail Consortium, Independent Footwear Retailers Association, Retail Ireland and other groups from France, Belgium and the Netherlands.

The European Commission introduced the new import taxes in April this year. The decision came after the European Commission said manufacturers in the Far East were receiving unfair government subsidies.

Under the new regulations, taxes for Chinese footwear start at 4.8 per cent and will increase steadily to a maximum of 19.4 per cent. Duties on Vietnamese shoes begin at 4.2 per cent and will rise to 16.8 per cent.

According to the EU, Asian countries export 215 million pairs of shoes to Europe each year, selling them at a lower price than the cost of the materials and threatening jobs at European manufacturers.

In July, it will make a decision on whether to include children's shoes and extend the existing duties for a further five years.

British Retail Consortium director general Kevin Hawkins said: 'There is no evidence that duties will create or preserve a single job in European shoe production. Manufacturers here don't make the low-cost shoes that the Far East specialises in. All duties do is wipe out any profit margin made on leather shoe sales, forcing retailers to either raise prices or cut costs by axing jobs.'

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