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The vast majority of Chinese footwear manufacturers will most likely not file suit against an anti-dumping tariff from the European Union as the deadline for litigation draws near, partly due to what would be expensive, lengthy legal battles.

The European Union has imposed a 16.5 percent anti-dumping tariff on leather shoes imported from China since October 7. Over 1,200 shoemakers were effected, though only four are fighting back through lawsuits in the EU courts.

Two of these firms are Zhejiang-based enterprises, including Aokang Group, the largest privately owned footwear manufacturer, and Taima Shoes Group, the third-largest shoe firm in the province. They are joined by two Guangdong-based companies: Golden Step Industrial Co Ltd and Xinsheng Gangyuan Shoes Group.

Guo Weiwen, an official with another Guangdong-based company, Apach Footwear, said that most small- and medium-sized enterprises are trying to work around the tariffs.

"Most enterprises turn to other strategies such as adjusting product structure and changing their export market," she said. "Some of them even plan to recede from the EU market."

Wang Xuehua, a lawyer specializing in anti-dumping with the Beijing Huanzhong Law Firm said that the high cost, complicated legal procedures, and unpredictable result of suing has stopped most enterprises from filing.

The legal procedure to counter anti-dumping charges can be very time consuming, and "it is possible that the two-year period will come to an end before the investigation is completed," said Wei Yafei, a spokeswoman with the China Leather Industry Association.

The four bigger players that are suing, however, feel they have a case.

"The European Union's action does not follow the rules of the World Trade Organization and the convention of the industry," said Liao Yue, chairman of Taima, one of the companies taking legal action. "They imposed tariffs on us without investigating my company."

The two Guangdong enterprises that decided to file the suit, according to Guo of Apach, were "the sample enterprises chosen by the European Union during the investigation, so they have experience in dealing with legal issues."

Shoemaker Aokang said it already handed its litigation materials to the European court in Brussels and are waiting for reaction.

"We hope we can learn something from this case, and we need to gain some experience for other enterprises in the future," said Wei Kaimeng, a spokesman with Aokang.

(China Daily December 19, 2006)