How to deal with anti-dumping or eyeing software furniture hardware companies

The anti-dumping "tightening spell" that is read every year has caused the wooden bedroom furniture to withdraw from the US market. Other wooden furniture has not been spared in the face of endless trade barriers. Beginning next year, furniture companies that are “wooden” will have to deal with new trade barriers – the “Les Program”.
The US Lacey Act, which was revised in 2008, will take effect on April 1 next year. By then, the coverage of the legality declaration of wood products will be extended to all imported wooden furniture products. According to the amendment, the basic declarations for entry include: the Latin name of the plant species, the country of harvest, the quantity and size, and the value of the import. Once the source of raw materials for a product is defined as illegal, the United States will have the right to punish the product and even imprison the exporter and purchaser.
Wang Huo, executive deputy secretary-general of Dongguan Ming Furniture Club, also said that there are very few amendments to the furniture enterprises in Dongguan, especially the timber from some furniture factories in Africa, because “the raw materials prove that forest farms need forest certification, but Because the cost is too high, many forest farms have not done it."
The author's investigation also shows that in addition to a small number of large furniture companies such as Taisheng, Fuyun and Guangrun, Dongguan has begun preparations in advance, and other furniture companies do not even know what "Les" is.
The industry generally believes that US import companies will reduce imports of Chinese wood products due to fear of being punished, which will make furniture exports more difficult. At the same time, because of the provision of raw materials, the cost of wood has increased, and the operating costs and transaction costs of wood products companies have also increased. It is highly probable that SMEs without strength will be eliminated.
The sofa or the next one is "reverse"
The Lacey Act is a hidden trade barrier that furniture companies are facing now, and Shi Da, director of the Taisheng Furniture Management Department, has a little more worry. "In recent years, the soft furniture represented by sofas has swarmed into the European and American markets. It has a large squeeze on the market space of local products and is likely to become the direct target of the next anti-dumping."
Shi Da said nothing. Yan Mingxing, general manager of Huangjiang Tianmei Life Home Furnishing Co., Ltd. also said that the software furniture is inconvenient to transport and the cost is very high. After entering the European and American markets, the price is not much different from the local one. "30% of the furniture exports are soft furniture. If it is not because the freight is too high, the competition is not so obvious, it may have been listed in the anti-dumping scope by Europe and the United States."
On October 26, Canada made an anti-dumping final cut on spring components for mattresses originating in China. In the final result, in addition to Shanghai and Guangdong Foshan, the remaining companies were found to have a dumping margin of 147.4%. Shi Da said, "This may be a prelude to the anti-dumping of Chinese software furniture in Europe and America.
On November 24th, the United States imposed 10.36% to 15.78% of countervailing duty sanctions on Chinese oil well pipes, involving a total amount of 2.7 billion US dollars, setting a record high since the US trade sanctions against China. Five years ago, this one of the heaviest trade sticks was hit on furniture, and the bruises have not been done so far.
Because 198.08% of the punitive tariffs were imposed five years ago, Chinese companies that exported wooden bedroom furniture to the United States shrank from 216 to less than 20 in the past five years, and the Reis program, which came into effect on April 1 next year. "There will be an invisible trade barrier on the way to the United States for furniture exports to the United States. The United States is harsh, and Dongguan furniture companies should be familiar with neighboring girls. However, it is not easy to really "make the soldiers come to block", and it is inevitable that they will bump and cry.
What's more, the industry also reminded that the soft furniture represented by the sofa is full of European and American markets, and it is likely to be the next anti-dumping target.
High tax rate forced China's bedroom furniture exports to the United States
The heaviest trade sanctions stick five years ago came from a 2004 US International Trade Commission ruling. In this ruling, more than 100 responding companies in China's wooden bedroom furniture exported to the United States were subject to a weighted average tax rate of 8.64%, while unreported companies were forced to impose a punitive tax rate of 198.08%.
The anti-dumping includes more than 30 kinds of products such as beds, wardrobes and dressing tables. The amount involved is nearly 1 billion US dollars. The vibration caused by the Sino-US trade circle is no worse than the oil pipe anti-subsidy sanctions imposed by the United States on the 24th of last month.
Dalingshan Taisheng Furniture Co., Ltd. has led the anti-dumping lawsuit against the United States. Shi Da, the director of the management of the camp, has participated in the response. He told reporters that only Taiwan’s Taisheng and Tianjin Meikemeijia (see map) have obtained long-term zero-tax rates, while other furniture Enterprises are taxed. "The profit margin of the bedroom furniture exported to the United States has been very low, and the tariffs of more than 10% can basically not be done." Shi Da said.
More terrifying is that since 2006, the United States has initiated an annual review of Chinese wooden bedroom furniture, and the company’s wooden bedroom furniture exports to the United States have to re-rate the tax rate.
Dalingshan Fuyun Furniture Co., Ltd. received a tax rate of 18%, and its bedroom furniture had to give up the US market.
Shida "listed" a data to reporters. Since the annual review, the number of companies exporting wooden bedroom furniture to the United States has been reduced from 216 dramas at the peak to less than 20. He said that some companies that are too single and unable to transform have turned to Vietnam to set up factories in an attempt to avoid anti-dumping against China.
● Coping with professional consultants to deal with the new trade rules Yan Mingxing heard about the Lacey Act, but it is still unknown. He responded that "it will let the company's lawyers learn more."
Tim Mei’s response to trade barriers has been sensitive. There are more and more various standards such as anti-dumping in the export market. Tianmei’s life can be reflected in the first time, and a law firm in Beijing has been hired as a consultant. “The law firm has a cooperative relationship with its American counterparts. Anti-dumping lawsuits are also handled by consultants. When there are new standards and regulations in foreign countries, they will notify us immediately.”
In terms of how to deal with trade barriers, large-scale furniture enterprises have their own methods and strengths, and they have practiced earlier. As a partner of IKEA (see map), Fuyun Furniture began to prepare legality declarations for raw materials sources five years ago. General Manager Li Wei said that the requirements of the Lacey Act are not a problem, because the company has a special three-person team under the business department responsible for various regulatory standards. After the source of raw materials is certified, the company will enter the information base. “Every time a new regulatory standard is received, training will be organized and all production links will be implemented.”
Guangrun Furniture started the globally recognized Forest Management Chain FSC (Forest Stewardship Council) certification two years ago. Huahushan, the international marketing manager, said that the FSC certification is similar to the Lacey Act, so it is familiar. “FSC has high requirements for the raw material supply chain. If it is regulated, the role of adapting to the Lacey Act will be very fast.”

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