Brazil’s federal government has announced action against a shoe exporter from Malaysia.
Anti-dumping measures against footwera imports into Brazil from China have been in place since 2010. The products in the anti-dumping measures include all kinds of shoe materials, such as cambrelle, microfiber, insole board, toe puff, PU leather, shoe linings, etc. The authorities in the South American country have become suspicious that some exporters are using a trick known as triangulation to get round this, by shipping shoes made in China indirectly to Brazil through a third country and claiming the footwear comes from there.
In the case of Malaysia, Brazil has already specified what manufacturers need to do in that country for it to consider them Malaysian-made.
The company at the centre of the controversy, Goodwill, has claimed that shoes it has exported to Brazil meet these criteria, but the Brazilian government has concluded the footwear really comes from China and has told Goodwill it must prove the shoes are made in Malaysia before any more pairs will be allowed entry.
Executive director of Brazilian footwear industry body Abicalçados, Heitor Klein, has said his organisation became suspicious about the increase in shoes coming into the country from Malaysia following the anti-dumping measures against imports from China. In 2010, when the measures came in, footwear imports from Malaysia to China increased in value to $20.3 million, from $1.2 million the year before.
Since investigations into triangulation began in 2011, the figure has fallen considerably. Mr Klein has said this shows the authorities in Brazil were right to be suspicious.
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