The Brazilian Association of Footwear Industries (Abicalçados) has warned that a new rule that allows international companies to import goods without tax could put 30,000 domestic footwear jobs at risk, writes Footwearbiz.

The chief executive of Abicalçados, Haroldo Ferreira, says the association has voiced its concerns to the government.

He said: “We warn the Government about the impacts of this measure, which exempts large international companies from paying taxes for the entry of products into Brazil, precisely in a range of up to US$50, which directly affects footwear produced in the country.

“How are we going to industrialise the country with unfair competition? The national industry will continue paying taxes such as PIS, Cofins and IPI, while foreign footwear will enter without any taxation. It is a measure that will cause companies to go bankrupt and needs to be revoked.”

He added that the association is not against imports, but feels the current rules are unfair.