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EU provisional duties on leather will cost Timberland $10m
23 Mar '06
2 min read
Outdoor apparel group Timberland Company has provided its preliminary estimated impact from the European Commission's decision to impose provisional duties on leather upper footwear originating from China and Vietnam and imported into European Member States.
The provisional duties on leather upper footwear are expected to be effective for a six-month period, will begin on April 7th 2006, and will be phased in over a period of five months, beginning at a rate of about 4 percent and ending at a 19.4 percent rate for China sourced footwear and at a 16.8 percent rate for Vietnam sourced footwear.
The duties may become definitive on or before October 7th 2006. While Timberland is advancing strategies in response to this action, including potential price increases on footwear products sold in Europe, its preliminary estimate is that the implementation of such duties will likely reduce its 2006 operating profits in the range of $10 million.
Jeffrey Swartz, Timberland's President and CEO stated, "As a premium footwear provider, we do not believe that our footwear is being imported into Europe at below market costs, and we believe that the imposition of percentage duties disproportionately impacts premium branded footwear companies, like Timberland, which have not caused injury to Europe-based footwear manufacturers."
"While we are disappointed by the decision of the European Commission, we will continue to work with the Commission to put forth our position with a view to finding a constructive solution," he added.
Timberland Company is a global leader in the design, engineering and marketing of premium-quality footwear, apparel and accessories for consumers who value the outdoors and their time in it.
The company's products can be found in leading department and specialty stores as well as Timberland retail stores throughout North America, Europe, Asia, Latin America, South Africa and the Middle East.
The provisional duties on leather upper footwear are expected to be effective for a six-month period, will begin on April 7th 2006, and will be phased in over a period of five months, beginning at a rate of about 4 percent and ending at a 19.4 percent rate for China sourced footwear and at a 16.8 percent rate for Vietnam sourced footwear.
The duties may become definitive on or before October 7th 2006. While Timberland is advancing strategies in response to this action, including potential price increases on footwear products sold in Europe, its preliminary estimate is that the implementation of such duties will likely reduce its 2006 operating profits in the range of $10 million.
Jeffrey Swartz, Timberland's President and CEO stated, "As a premium footwear provider, we do not believe that our footwear is being imported into Europe at below market costs, and we believe that the imposition of percentage duties disproportionately impacts premium branded footwear companies, like Timberland, which have not caused injury to Europe-based footwear manufacturers."
"While we are disappointed by the decision of the European Commission, we will continue to work with the Commission to put forth our position with a view to finding a constructive solution," he added.
Timberland Company is a global leader in the design, engineering and marketing of premium-quality footwear, apparel and accessories for consumers who value the outdoors and their time in it.
The company's products can be found in leading department and specialty stores as well as Timberland retail stores throughout North America, Europe, Asia, Latin America, South Africa and the Middle East.
Timberland Company
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