Vietnam set to become more important for leather shoes
17/12/2015
A sticking point had been how much of the material had to originate in Vietnam for the tariff exemption to apply – the ‘rules of origin’.
Under the terms of the deal, leather will be able to be brought into Vietnam, as it is not classified in Chapter 64 of the Harmonised Tariff Schedule, and the shoes manufactured there.
However, other footwear components such as heels will have to originate in the country.
FDRA president Mr Priest told Leatherbiz: “There is a lot of fully integrated footwear production; from the material level on, there is everything you need. So you may need to bring in rolls of leather, but once you get it in you will be able to ship the shoes duty free [to qualifying countries].”
He said while Vietnam has historically been a country that has produced athletic shoes, there has been a lot more movement to other types of product, such as leather and fashion.
“We can’t overemphasise the impact the TPP will have throughout the supply chain,” he added.
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