Export Tax Rebates Promptly Brings Out New Heights in Furniture and Hardware Exports

Since the furniture export tax rebate rate increased from 13% to 15% in June 2009, Guangdong's furniture export growth rate continued to rise. After a single month’s export volume reached US$1.02 billion in November last year, exports in December alone hit another record high, reaching US$1.15 billion, a year-on-year increase of 28.3% and a year-on-year increase of 13.3%, all of which were attributed to the furniture companies’ products. "Change face."

Chairman Yang of Taiwan-funded company Guangtong Glass Products Co., Ltd. told reporters yesterday that as a number of export-oriented furniture glass manufacturers, he could clearly feel the improvement in the export situation of furniture. In early 2009, orders fell by about 30%. The situation in the fourth quarter was markedly improved. Orders increased by 20% to 30% in the last few months. In addition to benefiting from the gradual recovery of external demand, this phenomenon is also related to the self-improvement of product structure by furniture companies. It is said that the increased orders are basically new.

Yang Zhiwen said that the new products not only bring more orders, but also allow companies to maintain about 15% of profits. The old product is almost zero profit or even easy to lose, which forces companies to constantly design and develop new products. Statistics from Guangzhou Customs show that in 2009, Guangdong exported 9.96 billion U.S. dollars of furniture, a decrease of 2.9% from the same period of last year.

Guangzhou Customs reminded enterprises that the frequent technical barriers introduced by Europe and the United States and other countries are increasingly restricting the export of furniture from Guangdong, not only significantly increasing the export costs of enterprises, but also being easily imitated and abused by other countries, and the external pressure on furniture exports will rise significantly. Technical barriers include the two regulations governing the wood and wood products regulations and the new environmental protection design directives passed by the European Union in April 2009. The United States has introduced the Lacey Act (Amendment) and will apply to furniture products on April 1, 2010. Laws, etc.

The United States and the European Union are the major export markets for Guangdong furniture. In 2009, Guangdong exported furniture to the United States and the European Union at US$3.38 billion and US$2.17 billion, respectively, a year-on-year decrease of 15.3% and 7.6% respectively. These two combined accounts for the total value of Guangdong's furniture exports over the same period. 55.6%. During the same period, exports to ASEAN amounted to US$1.15 billion, a surge of 1.4 times.

Shenzhen Furniture Exporter Mr. Fan said in an interview that many furniture companies are investing in the design and development of increased profit from tax increase, rather than price competition. Now the global technical standards for the furniture industry are getting higher and higher. The cost increases by about 10%. In this case, relying on new products will enable the company to retain profits.

“We used to rely mainly on OEMs to export to Europe and the United States. After trying our own design, we discovered that some European and American customers are also willing to outsource the design process to us. In the Southeast Asian market, customers are more able to accept our self-designed furniture, and orders are doubled and greatly reduced. The pressure on exports to Europe and the United States in 2009." Fan said.

Hu Qizhi, the secretary-general of the Guangdong Industrial Design Association, deeply understands this. Guangdong's furniture companies tailor furniture for customers according to the housing structure of different countries or regions, and can obtain more profits by providing value-added services.