The Humane Society International called Wednesday for halting China's fur trade to Australia after learning that furs were coming from the raccoon dog, ABC Radio Australia reports.

What angered the society were reports that Chinese workers skinned the dogs still alive. The dog's fur is used to line Ugg boots, a popular fashion brand in Australia, but is passed off as sheep skin.

Besides raccoon dogs, other types of domestic dogs are also suffering because of the high demand for their fur. Verna Simpson, director for Asia Pacific of HIS, estimated about 10 million domestic dogs in China are killed yearly for their fur.

Simpson pushed for the inclusion of raccoon dog fur in banned products in Australia. Domestic dog and cat fur were banned from import into Australia in 2004.

"I think that needs to be looked at anyway, just considering the cruelty of the way these animals are killed. They don't get the luxury of being knocked out before they die. They're literally skinned alive," Simpson told ABC Radio.

Han Brunner, an Australian animal hair identification expert, confirmed the HSI finding that the Ugg boots use raccoon dog fur. He pushed for the federal government to put a stop to the barbaric trade.

Lena McDonald, who operates Ugg Australia, said the company uses locally sourced materials for its boots, but 30 to 40 products on the market used the word "ugg" for their boots, which are made overseas.

"As far as I can see, many of these boots are not made n Australia at all, yet they have the word Australia and 'ugg' on them. ... Labelling laws in Australia are a little bit grey and we have seen companies cutting off tags saying 'made in China" and the Australia made tag put on it," she told news.com.au.

Despite the call made by HSI, the Home Affairs Ministry said it would not ban importation of raccoon dog fur.

"With regard to fur from animals other than cats and dogs, additional import prohibitions exist under the Convention on the International Trade in Endangered Species. CITES provides controls for the international trade of products derived from endangered animals or plants. Any trade in such items without the necessary, limited permissions is prohibited," the ministry said in a statement.

"Extending the ban to fur products from the Asiatic raccoon, or 'raccoon dog,' is not government policy at this time," news.co.m.au quoted the Home Affairs Ministry statement.