Anti-dumping Regulation on Leather Footwear Invalid

The European Union’s highest court has decided that a regulation imposing an anti-dumping duty on leather footwear imported into the EU from China and Vietnam is partially invalid.

The case was brought into light by C. & J. Clark International in the UK and Puma SE in Germany, who claimed the regulation was invalid and sought refunds on anti-dumping duties they had paid in their respective countries; around €60 million for Clarks and about €5.1 million for Puma. Upon rejection of their claims, both companies filed appeals that led to the First-tier Tribunal and the Finance Court in Munich questioning the regulation’s validity. Both courts have sought a ruling from the Court of Justice. On January 4, the European Court of Justice said that two EU law making institutions failed to comply with procedural rules when adopting a 2006 regulation, which imposed anti-dumping duties of 16.5% on footwear originating in China and 10% on footwear originating in Vietnam. It has ruled that a regulation imposing an anti-dumping duty on leather footwear imported into the E.U from these countries is partially invalid since market conditions in the countries were not properly considered when adopting the regulation. It also stated that the Council of the European Union and the European Commission did not adjudicate on claims for market economy treatment or individual treatment submitted by Chinese and Vietnamese exporting producers not sampled in the anti-dumping investigation, rendering the regulation invalid in those regards. While the commission can limit an anti-dumping investigation to a sampling, when there are larger numbers of producers involved, the commission and council must also rule on any claim for market economy treatment submitted to them and have a responsibility to set an anti-dumping duty rate for every exporting producer, unless individual treatment would be unachievable.

Source: https://mail.google.com/mail/u/1/#inbox/15317ea96c32dc3