China changing import rules for raw materials

SANDY PARKER REPORT, VOL. 30, ISSUE 34, OCT. 30, 2006
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
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.
IN THIS ISSUE:
China Changing Import Rules
Dresser Pollution Called a Cause
Hear Duty-Free Status Will End
Higher Prices Seen Resulting
World Trade May Feel Effects
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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