KNITIDO: Socks export to EU, EPA utilization: cross-border EC from Germany

KNITIDO: Socks export to EU, EPA utilization: cross-border EC from Germany

Berlin

November 08, 2019

KNITIDO: EU export of socks

KNITIDO (Kainan City, Wakayama Prefecture) is a long-established brand of luxury five-finger socks.

Produced the world’s first “three-dimensional yubi socks” using a fully knitted flat knitting machine

We are committed to quality and work on developing yarns that meet market needs and applications.

In 2007, KNITIDO Europe was established in Berlin.

EU / EPA: Introduction

On October 8th, JETRO interviewed “Utilization of Japan-EU Economic Partnership Agreement (EPA)”.

It is said that Japan-EU / EPA is used for the export of five-finger socks.

KNITIDO’s major overseas markets are Europe.

“Online sales from Germany, France, Spain, Italy, UK, etc.”

EU-Japan: Effect

In the overseas export business, products exported by the Japanese headquarters are first imported by a German subsidiary.

After that, we use a method of shipping to customers and customers in Europe.

In other words, Japan-EU / EPA is used for “export from Japanese headquarters to German subsidiary”.

At the end of 2018, we obtained information on the effective date of the EU-Japan-EPA in February 2019, and proceeded with preparations at the Nittido head office.

By “ the declaration of origin on this invoice”, customs clearance is smooth in Germany.

The tariff rate on EU socks is 12%, and the cost reduction effect by eliminating tariffs is great.

A German subsidiary enjoys this advantage.

5-finger socks: Competition in the EU

In the EU, awareness of five-finger socks is spreading.

In the European market, “cheap similar products from China” have begun to circulate in large quantities.

However, Germany is a market that thinks that “good quality products can be paid for.”

The price will remain unchanged, and the cost savings resulting from the elimination of tariffs will be used as a source of sales channel development and marketing activities.

-JETRO

https://www.jetro.go.jp/biznews/2019/11/e92b09bb2b59cb3c.html