China changing import rules for raw materials

[Guest guest]

From the Fur Commission USA site:

 

International Fur News

with Sandy Parker

Oct. 30, 2006

 

China changing import rules for raw materials

 

CONFLICTING REPORTS CONTINUED TO CIRCULATE LAST WEEK concerning restrictions on

the importation of many raw materials into China, including fur and leather

skins for processing and manufacture. Considering China’s current preeminence

in the international fur trade and the powerful impact its purchases can have on

supplies and prices, the mere thought of any disruption of the movement of goods

into that country tends to send shivers through those connected with the primary

markets around the world. Just as China’s voracious appetite for furs has

helped to propel skin prices to record highs this year, the fear is that a

sudden downshift could bring a collapse, as well as a cutoff of the supply of

fur garments for much of the world.

 

Trade sources describe a potentially serious situation. They say it stems from

the country’s gigantic pollution problems surrounding the processing of many

materials, including furs. At the same time, the belief is that whatever action

the government may be taking may also be an attempt to eliminate widespread

smuggling of goods.

 

IN A STATEMENT ISSUED LAST WEEK, FINNISH FUR SALES VOICED ITS CONCERN about the

possible impact on skin prices. The revised import regulations, it said, " are

creating uncertainty in the international fur market in spite of positive

prospects for demand. If the new regulations cannot be changed through

negotiations conducted by various organizations with the Chinese authorities,

the prices of Western pelts may drop significantly in auctions during the season

about to begin. "

 

The auction company pointed out that the new rules will require payment of an

import duty even if the pelts are only brought to China for dressing and taken

out of the country after. Import duties and VAT total 35% on average, but as the

pelts are taken out of the country, the refund on these duties and tax is 13% at

a maximum.

 

http://www.furcommission.com/news/SP3a.htm