Import increase of Brazilian footwear worries producers

Ecuadornews:

The local manufacturers ask the Government to lift the protection mechanisms for the national industry. Since the safeguards were eliminated in 2017, the sale of shoes made in Brazil increased 103%.

The entrance of Brazilian footwear to the country increased in 2017, before which the Ecuadorian industry fears a significant impact on its sales. In recent years, imports of this product have varied. In 2014 they reached $ 20 million, in 2016 they dropped to $ 13 million. But in 2017 they recovered and reached $ 27 million, according to the National Customs Service of Ecuador (Senae).

“This enormous income of Brazilian footwear has displaced national production,” warned Lilia Villavicencio, president of the National Chamber of Footwear (Caltu), who in turn asked the government to take measures to protect the national industry.

Footwear Infogram

After the elimination of the safeguards, in June of 2017, the products from several countries escalated again because their prices were reduced.

China was the main origin of imports with $ 38 million and a market share of 31%. It had a slight growth of 0.3%.

Vietnam was the second shoe supplier with a total of $ 30 million and a 14% share.

Brazil grew at a faster pace (103%) and is currently the third country that sells more shoes to Ecuador. It registers a participation of 21%. In view of the increase in the entry of Brazilian footwear, the Senae initiated the processes of doubt of qualification of origin for 13 tariff subheadings and demanded the constitution of guarantees for the value equivalent to the tax obligations.

The procedure is applied in cases where Customs finds that the values declared by the importer are lower than those registered in their databases. In view of this, the importer must gather a series of documents of supports, such as corporate mails of the negotiation, order notes, invoice, statements of account for the last three months and accounting entries. If the person involved needs to remove the product from the temporary warehouse, without the issue having been solved, it can do so with a customs guarantee, such as a policy.

Some Brazilian shoe stores also sell Ecuadorian products, the prices of both hardly vary. At the Brazil Store, a casual leather shoe for men of Ecuadorian manufacture costs $ 90 and an imported $ 92. Magali Cueva, sales executive of the Zaxi marketer, considers that the main characteristics of foreign footwear are comfort and durability, while that the national has more designs with enough reception.

The president of Caltu said that the shoes made in the country are of excellent quality, as producers have made efforts to use technology and strengthen training. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/importacion-calzado-brasileno-productores