A notable exception is the EU anti-dumping charges against handbags originated from China. Leather footwear exported from China to the EU is governed by the EU community-wide quota system introduced in 1994. They are not entitled to the EU's GSP benefits. The anti-dumping duty amounts to the difference between the CIF price and the minimum price. On the other hand, the EU's proceedings against anti-dumping of briefcases, school bags, luggage and travel goods originated from China have been terminated.
Japan adopts a two-tier quota system for the import of leather footwear.
Under the system, a primary duty is charged for a pre-set quantity beyond which a secondary duty is applied. Under the new arrangement, affixing uppers and inner soles in Hong Kong will suffice for the status of Hong Kong origin, irrespective of whether the uppers and inner soles are produced in Hong Kong. Since then, the new ruling has attracted many footwear manufacturers to expand local production and resulted in an increase of domestic exports. Hong Kong manufacturers also faces challenges from the regulatory environment overseas. Upon amendment and endorsement by the European Council and the European Parliament, all member states will be required to abide by the proposed restrictions by 1 July 2002.