New European and American standards "kill" Chinese wood product export companies

 

   In recent years, in the context of the continuous tightening of timber export policies in various countries, the global timber supply has continued to tighten. However, in the past two years, China's timber imports have been rising sharply, and it has fallen into the dilemma of scarcity of raw materials. At the same time, the introduction of new European and American regulations has also put pressure on many Chinese wood product export companies. Some people predict that in the second half of this year, the "difficulties" facing China's timber industry will continue to increase. This year, related companies are really worried!

 

    Recently, the new regulations issued by Europe and the United States have caused quite a headache for many Chinese wood product export companies. According to industry insiders, first the United States "Composite Wood Products Formaldehyde Standard Act" that came into effect on July 1 this year caught many small and medium-sized Chinese furniture companies occupying the market at a low cost by surprise. Later, the European Union issued the "Country of Origin Label". The law has increased the difficulty of exporting furniture to the EU. For a time, Chinese wood product export companies were in a dilemma.

 

    Europe and the United States have successively introduced new regulations for wood products

 

    In recent years, the U.S. has increasingly strict requirements on imported wood products. The amendment to the Lacey Act that came into effect on September 1, 2010 stipulates that all wood products, living plants, bulbs, wood pulp, paper, paper products, musical instruments, furniture and other forest products exported to the United States must be marked with wood Type and source, otherwise the United States will refuse to enter these products, and illegal products will be confiscated. The newly implemented "Composite Wood Products Formaldehyde Standard Act" has also made the formaldehyde limit requirements for hardwood plywood, medium density fiberboard and particleboard supplied, sold or manufactured in the United States become the most stringent requirement for the global formaldehyde emission of composite wood products. Far higher than the standards of the European Union, Japan and China.

 

    Coincidentally, the "Country of Origin Labeling Law" passed by the European Union at the end of 2010 will come into effect on March 3, 2013. The Act requires that wood products imported into the EU market must obtain an "identity card", which proves that the wood purchased by the manufacturer comes from a legally developed forest. “The bill passed by the European Union is similar to the Lacey Act introduced by the United States before. It is designed to ensure that buyers clearly know the origin of imported raw materials sold in Europe. However, due to the current raw wood and timber purchased by some domestic companies The products still have certain illegal logging problems more or less, and it is more difficult to obtain forest certification. Therefore, these companies have considerable difficulties in issuing certificates." said Yin Qi, a doctor of Beijing Forestry University.

 

    Many companies exit the European and American markets

 

    In fact, the introduction of new European and American regulations has indeed caused great troubles to Chinese wood products companies. For example, the US "Composite Wood Products Formaldehyde Standard Act" has "killed" a number of companies in Zhejiang, a major Chinese wood product export province. According to a sample survey of 30 wood product export companies by Ningbo Inspection and Quarantine Bureau, 16 companies were affected by the above-mentioned regulations when they exported wood products to the United States. The affected proportion exceeded 50%, and the direct loss was nearly 1.3 million US dollars. More than 2 million US dollars.

 

    Huang Ting, director of the WTO (World Trade Organization) Office of Ningbo Inspection and Quarantine Bureau, said that the impact of the US formaldehyde limit regulations is mainly reflected in the increase in testing costs, the loss of orders and the reduction in the number of enterprises. Now, due to the sharp decline in corporate profits due to rising costs, some companies even have to abandon the US market. Related investigations show that Ningbo Ninghai wooden photo frame companies have shrunk from eight years ago to three now; some small and medium-sized wood product export companies in Ningbo Yinzhou District have also begun to withdraw from the US market.

 

    And if the “Labeling Law of the Country of Origin” promulgated by the European Union is implemented, the impact on related companies will also be huge. Take the furniture industry as an example. China is a major furniture manufacturing country, and the amount of furniture exported to the EU accounts for more than one-third of the total furniture exported. However, after the EU raises the threshold for imported furniture, it is initially estimated that about 30% of Chinese furniture companies will find it difficult to enter the EU market.

 

    Yin Qi told reporters that both bills set strict requirements on the origin of imported products, the origin of raw materials, and environmental performance. This will not only increase the cost of furniture companies, but at the same time, some domestic companies need to import logs and timber products from Russia, Malaysia, Indonesia, Solomon Islands and Papua New Guinea. Many of these supplier countries have problems with illegal logging. Therefore, the European log "identity card" requirement may cause some furniture companies to miss orders. "Management regulations in different countries are different, and it is difficult to prove whether the source of timber is legal, and the origin of some imported timber is even impossible to verify. This will have a greater impact on Chinese wood product export companies, especially small and medium-sized wood product export companies. It may even force them to withdraw from the European market.” Yin Qi said, “However, some large-scale furniture export companies have long had transactions with European and American furniture importers, and they have always strictly followed the regulations on the details of the source of raw materials. Therefore, They will not be greatly affected."

 

    "Intensive farming and meticulous farming" can highlight the encirclement

 

    Facing the ever-increasing industry standards in the international market, can China's manufacturing industry really have to wait and die? The industry believes that the key to "breakthrough" is to increase the added value of products. "From the export of logs to the export of plywood and wood-based panels, and now to the export of furniture, the added value of China's timber and wood products exports is increasing.

 

    At present, the main feature of China's wood and wood products exports is that the exports of wood-based panels and wood furniture account for a large proportion. In the future, Chinese wood product export companies should develop into ‘intensive farming’. "Jinxiu Wood Industry Chairman Cai Huixing believes that what domestic wood products-related enterprises should do is to continuously adjust the industrial structure, increase scientific and technological research and development to reduce dependence on and damage to forest resources; establish a more stable import resource base and channels, and strengthen The ability to withstand the impact of price fluctuations in the international market; establish a more standardized import order, avoid disorderly competition caused by cannibalism, weaken its competitiveness in the international market and destroy its image in the international market, etc., and strive to increase the product Added value, fully opening up the gap in the high-end market, shifting from winning by price to winning by quality.