US Dollar Exchange Rates of 31th Jan. 2009
China Yuan 6.8350
Report from China
Chinese flooring manufacturers lose 337 investigation
The US International Trade Commission (ITC) made a
final determination on its Section 337 investigation of 38
flooring companies from multiple countries, ruling these
companies in violation of the patent protecting glueless
laminate flooring panels. The patent is owned by the
Unilin Beheer B.V., the Netherlands and its two
subsidiaries, Flooring Industries Ltd. in the Republic of
Ireland and Uninlin Flooring N.C. LLC in the US. In line
with the final ruling, a general exclusion order was
granted, requiring US Customs to restrict the import of
such products.
Eighteen Chinese laminate flooring manufacturers were
investigated by the ITC. According to the final ruling,
these companies are restricted from exporting any flooring
panels unless they pay USD100,000 to USD120,000 in
royalties and USD0.65 in royalties per cubic meter to the
owner of the patent. If the manufacturers do not comply
with this measure, China¡¯s flooring manufacturers will not
be allowed to export their glueless laminate flooring
panels.
China to permit duty free export of some wood products
In order to respond to the global economic slowdown and
keep stable growth in foreign trade, two notices (Notice
No. 120 and No. 121) were issued jointly by the Ministry
of Commerce and the General Administration of China¡¯s
Customs on 31 December 2009, to amend the Catalogue
of Restricted and Prohibited Products for Processing
Trade. Effective 1 February 2009, China will allow duty
free export of some products including certain wood
products. A total of 1,730 ten digit tariff code items of
textiles, plastic products, wood products and metal
products will be removed from the Catalogue of Restricted
Products for Processing Trade, making up 77% of the total
number of previously restricted products worth USD30
billion. A total of 27 ten digit tariff code items of copper,
nickel and aluminum materials will be removed from the
catalogue of prohibited products for trading, comprising
USD1.5 billion of the total export value.
Leizhou Peninsula hit by substantial shut downs
Jia Zhibang, Administrator of the State Forestry
Administration, recently stated that the development of
China¡¯s forestry sector had significantly progressed and
achievements had been made to balance forestry
development and grow farmers¡¯ incomes. The total output
value of China¡¯s forestry was expected to rise 6%,
reaching RMB1.33 trillion yuan in 2008, although the full
implications of the snow storm and freezing rain,
earthquakes and the international financial crisis affecting
the country had not been fully taken into account. The
total value of foreign trade was estimated to exceed
USD70 billion.
The scale of the national forestry industry had also
expanded. There were more than 15,000 forestry
enterprises with RMB5 million yuan of annual sales. The
annual output value of forestry in Fujian, Guangdong and
Zhejiang provinces exceeded RMB100 billion yuan. Fast
growing and high yielding plantations had developed
rapidly. Raw materials for paper, pulp and wood-based
panels had become social investment priorities. Forest
industry groups had been established to address wood and
bamboo processing, wood pulp and paper making, forest
specialization, cultivation of flowers and wild plants and
animals.
In addition, Mr. Jia also indicated that forestry
development was in a critical period and facing severe
challenges from the global economic downturn. During
January to October 2008, the total value of wood products
imports and exports rose 15% and fell 17 percentage
points from the gains seen in the same period in 2007. The
export prices for wood-based panels and wooden floors
fell 25% and 30%, resulting in many processing and
exporting enterprises closing or temporarily stopping
production. According to statistics, 50% of national
plywood enterprises closed down or stopped production.
Sixty percent of timber primary processing enterprises
stopped or partially stopped production.
Fujian sees stable growth for furniture exports in 2008
According to the latest statistics from Fuzhou City
Customs, the growth rate of furniture exports in Fujian
Province in the fourth quarter 2008 slowed down
markedly and was only 11%, twelve percentage points
lower than the growth experienced in the first three
quarters of 2008. Furniture exports in Fujian Province in
2008 were USD1.596 billion, growing 20% over 2007
levels. Furniture in Fujian Province was mainly exported
to the US and Europe, amounting to USD700 million and
USD450 million, respectively, and increasing 10% and
19%, respectively. China¡¯s export value to these two
markets constituted 72% of the total furniture export value
in Fujian Province. In addition, the growth rates of Fujian
furniture exports to Canada and Japan rose by 29%
(USD85 million) and 27% (USD77 million), respectively.
Wooden furniture exports rose 7% to USD460 million,
wooden framed seats exports grew 7.5% to USD90
million, metal framed seats rose 14% to USD390 million,
metal furniture exports grew 25% to USD370 million. The
value of the above mentioned commodities accounted for
82% of the total furniture export value in Fujian Province.
As a result of the US anti-dumping duty rate (36% in
2008), wooden furniture exports to the US fell 10% to
USD190 million in 2008.
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