International environmental protection laws make Chinese furniture exporters complain

The formaldehyde standard for exported furniture is a thousand times higher than domestic

It is gratifying that most of the furniture export enterprises have stated that they have adapted to the new standards, and the resulting cost pressures are gradually being digested within the industry. At present, the improvement of environmental standards is no longer an obstacle for export enterprises. On the contrary, rising domestic costs, competition from emerging countries, and intensified trade barriers are the real problems that make companies scratch their heads.

Pressure to raise environmental standards gradually fades

The time goes back to a year ago. The United States announced that from July 1, 2011, the formal implementation of the "composite wood products formaldehyde Standards Act," which limits formaldehyde is greatly improved emission standards even higher than 1,000 times the world's major current national standards, known as The most demanding environmental protection act in history. "The implementation of the new standard has resulted in the cost of Chinese wood products exported to the United States increasing by at least 20% and rising by 5% to 10% . At that time, it really felt a lot of pressure." Chen Shuming of the Export Department of Fujian Furniture Import and Export Corporation said.

The cost of raw materials increased by 8% , coupled with the increase in domestic labor costs, etc., resulting in too low export profits to the United States, Foton Furniture Supplies ( Jiangsu ) Co., Ltd. manager Zhang Guangwei also said that the company had decided not to expand the U.S. market at that time Emerging Markets.

It is understood that the United States "composite wood products formaldehyde Standards Act" on January 3, 2011 and entered into force step by step.

It is worth mentioning that since last July 1, the formaldehyde limits significantly improve the bill. Taking particle board as an example, China's current national standards are formulated with reference to the EU limit standards, and its formaldehyde emission should not exceed 90mg / kg , while the formaldehyde emission of particle board required by the new US law should not exceed 0.09mg / kg , which is 1000 times higher than China's standard .

But after a one-year break-in period, most companies have now adapted to the new standard. "The new environmental protection standards issued by the United States are implemented in stages, which gives enterprises a process of adaptation." Chen Shuming added that the requirement is not an increase in technical standards, and it is not difficult for enterprises.

Allstate (Fujian) Co., Ltd., Lvzhong Qi also agree with the above statement, he also said that with the increase in production can meet the standards of the supply chain enterprises, the introduction of standard initial cost pressures brought about gradually reduce and currently accounts for the total cost About 1.5% . Overall, the improvement of environmental standards has not constituted an export barrier.

Chen Shuming also said, "Wool comes from sheep", the increase in the cost of plates and raw materials will eventually lead to a corresponding increase in quotations. Because the proportion is very small and they are passed on to customers, they can basically accept it. At present, it has little impact on the company .

Coexistence of internal and external worries

"Compared with the pressure brought by the improvement of environmental protection standards, increasing international trade barriers and rising domestic costs are the important factors that restrict the development of exported furniture." Zhang Guangwei said that the days of Chinese furniture companies exporting to the United States have become more and more recent. Not good.

In recent years, the United States imported furniture and other wood products frequent moves: the 2008 introduction of the "Consumer Product Safety Enhancement Act," a substantial increase for all possible technical requirements and reach of children under the age of 12 goods exports to the US market; April 2010 1st of implementation of the "Lacey Act" amendment requires importers of wood products must provide proof of legal origin of wood at each shipment of imported plants or forest; November 2010, the US international Trade Commission ruled that continue after sunset review Maintain the existing anti-dumping tax orders on wooden bedroom furniture that we exported to the United States. Except for 13 Chinese companies that received separate tax rates of 43.23% , the tax rates of other Chinese companies were 216.01% . "Now the rising domestic labor costs have highlighted the competitive advantages of Southeast Asian countries, and the requirements of some American customers are becoming more and more demanding, resulting in lower and lower profits for enterprises." Zhang Guangwei said that despite the high demand in the US furniture market, For cost considerations, companies have no choice to expand the US market, but have been looking for emerging markets.

Lu Zhongqi also said that in the past two years, due to profit considerations, companies had to give up some low-end orders; at the same time, domestic consumption was sluggish, and the cost pressure of the company could not be passed on to the downstream. The harder it is. "Decrease of orders is not the result of a single factor." Chen Shuming said that at present, the US dollar is still very strong, and the renminbi has a long road to internationalization, which is very unfavorable to foreign trade enterprises' quotations, and it is too risky to be cleared by third countries.

Chen Shuming also pointed out that there are currently two problems that plague enterprises: One is the lack of diversified sales promotion channels. At present, enterprises can only participate in large-scale exhibitions like the Canton Fair, and there is no professional exhibition for small and medium-sized furniture companies. Second, he hoped that the government would increase the subsidies for importing solid wood tree sources, because imported trees are relatively stable and of relatively high quality. Using imported wood to produce furniture for re-export is also one of the ways to enhance the competitiveness of enterprises.

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