Clarks and Puma obtain ruling against European anti-dumping law

By

Matthieu Guinebault

Published
Feb 9, 2016

The European Court of Justice has issued its ruling: by introducing anti-dumping taxation on leather footwear sourced from China and Vietnam, the EU apparently failed to comply with the rules for product price evaluation normally applied to extra-EU manufacturing. The Clarks and Puma groups are seeking redress.

Since October 2006, the EU imposed an anti-dumping tax of 16.5% on Chinese footwear imports, and a 10% one in the case of Vietnamese products. The taxes are usually calculated on the standard selling price charged in the exporting country. Yet, Europe failed to justify its calculation in this field.

Also, commercial law authorises certain parties to request a specific enquiry. It in fact allows the tax to be calculated based on their own selling price, and not on the  manufacturing country's national average. The EU apparently did not follow up on requests for a case-by-case treatment.

Altogether, Clarks is demanding compensation worth €60 million from the EU for taxes imposed between 1st July 2007 and 21st August 2010. Puma is instead claiming approximately €5.1 million. The two brands' claims were initially rejected by the UK and German financial authorities. After the European Court's latest ruling, it is up to the respective national courts to decide on these claims for damages.