Analysis on the Countermeasures of Foreign Trade in Wood Products and Furniture Trade

Analysis on the Countermeasures of Foreign Trade in Wood Products and Furniture Trade
2018-05-07 Source: China National Gate Times
With the increasing prosperity of China’s timber import and export trade, China’s timber and wood products industry has received extensive attention from the international community. In the early years, most of China’s timber industry adopted extensive management methods. For example, harvesting local forests and transporting them to China’s production led resource countries to impose more stringent requirements on China’s lumber industry. In particular, the impact of technical trade measures (hereinafter referred to as “technical trade measures”) was most serious. It must arouse the attention of all parties and actively respond to it.
State of Wood Products Import and Export Trade
China is a major importer of logs, and the increase in imports has led to an increase in the volume of transactions in the international log market. Due to the year-on-year growth in the sales area of ​​China’s commercial real estate and the national investment in real estate development, the real estate market continues to heat up and the consumption of logs has increased significantly. According to statistics, from January to July last year, the import volume of logs totaled 28,083,500 cubic meters, an increase of 3.15% over the same period of last year, an increase of 857,300 cubic meters.
Since the beginning of this year, due to the slowdown of world economic development and the low price of products from some countries in Southeast Asia and other countries participating in international competition, the export of timber products in China has been severely impacted. Guangzhou Kangda Wood (one of China’s largest manufacturers of engineered wood flooring) has moved its entire plant to Vietnam. It is understood that Vietnam’s special preferential policies include exemption of import tax on equipment and raw materials, and income tax is only 20 yuan. %. China’s timber processing companies were attracted to move their factories to Vietnam. There were nearly 40 wood processing companies in the Ningzhong Industrial Zone in Xining, Vietnam. In addition, the continuous devaluation of the currencies of the euro and many other countries, the impact of Britain’s “Brexit” on the European market, etc., the international market demand has generally shrunk and the competition is fierce. China’s wood products exports have encountered unprecedented difficulties.
Key points of technical trade of wood products
In order to limit the export of logs and the import of wood products, many measures have been introduced abroad, mainly tariffs, formaldehyde release limits, and origins. Russia has repeatedly adjusted the export tariffs on plateau wood. The EU proposed the “Country of Origin Labeling Law” to require that the United States propose formaldehyde emission and the Lacey Act. Most other countries refer to relevant requirements of Russia, the United States, and the European Union to export wood products from China. Encounter severe winter.
Russia imposes restrictive tariffs on log exports, causing the company’s production costs to surge. In recent years, Russia has twice increased the export tariffs on logs: Since July 2007, tariffs have increased from 4 euros per cubic meter to 10 euros, and have been raised to 15 euros per cubic meter since April 1, 2008. Despite the impact of the global financial crisis and the deepening of the economic crisis, the Russian government suspended the tariff plan that was originally scheduled to increase to 50 euros per cubic meter from January 1, 2009, but it still does not rule out the possibility that Russia will tighten log export restrictions.
On December 10, 2016, the United States Environmental Protection Agency (EPA) issued the “Commodity Wood Products Formaldehyde Standards Act” to improve the safety standards and access conditions of composite wood products produced or imported in the United States, becoming the most stringent formaldehyde emission in the United States. The regulations have caused a great negative impact on China’s export of composite wood products. The bill specifies the formaldehyde release limit requirements for wood products such as particleboard, MDF, and hardwood plywood sold and distributed in the United States. Taking medium density fiberboard as an example, China’s current national standards are formulated with reference to the European Union’s limit standards. The maximum formaldehyde emission rate prescribed by the highest standards shall not exceed 80ppm, while the US new law provides that the formaldehyde emission from medium density fiberboard shall not exceed 0.11ppm. It is required that composite wood products and their finished products must be certified by an EPA recognized certification body before they can be sold in the United States. The Lacey Act extends the coverage to all wood furniture products and requires all wood products to have “legal” certificates of origin for timber when entering the United States.
The European Union’s “Country of Origin Labeling Act” aims to ensure that buyers clearly know the origin of imported raw materials sold in Europe. Wood products exported to the EU market must obtain “identity cards.” At present, it seems that the “Country of Origin Labelling Act” has little effect on the operation of large companies that can successfully pass the “FSC certification” (forest certification), but it has a significant impact on small and medium-sized wood products export enterprises. The timber and timber products purchased by domestic small and medium-sized wood products companies mostly come from countries such as Russia, Malaysia and Indonesia. It is difficult for these countries to obtain forest certification. “FSC certification” cumbersome certification procedures, higher certification costs, and certification cycle that requires certification once a year also make many SMEs overwhelmed.
Many parties work together to promote the quality of wood products industry
At present, China’s economic development has entered a new normal, coupled with the declining demand for wood processing products in the world, and various types of technical and trade measures in developed countries have become numerous and increasingly stringent, and competition in the international market is fierce. In order to respond to foreign technological and trade measures and win international competition, the timber industry in China must shift from extensive operations to quality improvement.
Timber companies actively seek transformation and upgrading. The first is to convert from labor-intensive products to high-tech products, upgrade technical equipment, cultivate professional talents familiar with international investment knowledge and local conditions in host countries, increase product added value, and enhance international competitiveness. . The second is shifting from a focus on economic efficiency to the courage to undertake social responsibilities and environmental responsibilities, paying attention to benefits while paying attention to the construction of environmental protection, and being responsible for the regional environment after “going out” to enhance international reputation. Third, from the singles of enterprises to actively play the role of industrial associations. Facing the new situation and new challenges in the market and trade of wood products, the association should actively collect relevant foreign information, pay attention to the changes in national policies and landing conditions in real time, and formulate industry development. Planning, leading companies to partner in emerging markets for development.
The customs inspection and quarantine technical department cooperated with export enterprises to respond to foreign technical measures. In view of the endless stream of foreign trade technical and trade measures for wood products, the relevant technical and trade measure research institutions and inspection, inspection, certification and accreditation bodies must track in time, do a good job of pre-judgment, and issue early warnings to related companies. In order to help companies deal with the “Complex Wood Products Formaldehyde Standards Act,” the China National Accreditation Service for Conformity Assessment (CNAS) has, through unremitting efforts, been finally listed on the official website of the United States Environmental Protection Agency (EPA) on January 25, 2018. The list of emission standard accreditation bodies means that CNAS has officially become the accredited body recognized by the US Environmental Protection Agency for formaldehyde emission certification and testing of composite wood products. China’s wood product export enterprises can successfully export to the United States by means of reports or certificates issued by CNAS-accredited conformity assessment agencies, eliminating the need for repetitive inspections, greatly reducing the company’s testing costs, improving inspection efficiency, and improving export efficiency.

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