Export tax rebate rate can not withstand a weak market Yuan Qinglin

businessmen operating in Dongguan, a British record safe furniture factory, the production of wood or iron furniture are mainly exported to the United States, the annual exports from 300 million to 500 million Hong Kong dollars. But from the beginning of this year in June, he began to feel significantly reduced orders. “6 to 9 month order to reduce the sticking around.” He told reporters.

Yuan Qinglin not a case of what happened. Customs statistics show that the export center for furniture industry in Guangdong, the last two months of the furniture export has been significantly affected by the financial crisis, even from the start up some furniture last month, the export tax rebate rate does not help.

According to the statistics, the first three quarters of this year, Guangdong exported furniture 7.6 billion increase over last year is still 21.1%, but starting in October, Guangdong furniture exports leave this good situation, exports of 840 million U.S. dollars, arise of 1.2 % drop. November 1, although some of the furniture products in china export tax rebate rate from 11% to 13%, but exports of Guangdong in November Furniture 900 million U.S. dollars, only a slight increase over last year by 0.1%, export tax rebate rate of increase is still difficult to offset weakening external demand caused by adverse effects. Mainland enterprises seeking to take advantage of low cost market

The second half of the export policy adjustments from the list view, furniture, has entered the country to support the list of export industries. Following the November 1 furniture products from some of the export tax rebate rate to 11% or 13%, the effect from December 1, furniture, lighting products, and further raised the export tax rebate of 13%, but not limited to the adjustment November wooden furniture, but all the furniture category raised the export tax rebate of 13%. Subsequently, in response to financial crisis and ease financial pressure processing trade enterprises, the state suspended the processing trade restricted deposit account “real change” policy, which is exported to Guangdong furniture substantive “good.”

But business seems to have a more long-term plans. In the Yuan Qinglin view, the international market downturn, in fact, contains the opportunity of economic recovery. “We take this time to lower costs, increase investment to the domestic channel well, then the economy such as a pick up, our chance came.” He intends to invest 5 million yuan in the coming years, the city built in the country’s first-line products Exhibition Hall, the laying of marketing channels, the product gradually transferred to the domestic market. New measures to guard against the United States next year, furniture exports in Guangdong

Year the United States remains the largest export market for furniture in Guangdong, although the pre-November export growth of only 3.4%, but exports of Guangdong accounted for 39.2% of total furniture exports; the same period exports to the EU 2.12 billion U.S. dollars, a substantial increase of 32% become the fastest growing furniture export in Guangdong area.

But it will remind China’s furniture exports have suffered in recent years, the U.S. anti-dumping, safeguard measures in trade in Turkey and the EU’s dumping prosecution. In addition, more and more countries in Europe began to make wood products in China Forest Certification (FSC) requirements, leading to further increase the export threshold. Of particular concern is the effect on Jan. 1 next year, California on the composite wood products in the formaldehyde content of the new standards will be implemented, and plans to further reduce the above-mentioned products, the next phase of the formaldehyde emission standards, the new measure in Guangdong the impact of foreign trade of wood products will be very obvious. Related exports to the U.S. wood products companies meet the requirements should be used by the detection of products of composite wood materials, and reduce the risk of a possible trade.