The "big uncle Sam" trade bar was last hit on the tires. When the US Lacey Act amendments are implemented on April 1st, furniture will soon enjoy similar "treatment." The amendment stipulates that importers of wood products must make a series of declarations such as the legality of the source of raw materials when importing forest products such as plants or furniture. Otherwise, buyers and sellers may face the fate of being imprisoned. It is understood that the raw material supply chain of Dongguan furniture enterprises can meet the requirements. The industry believes that the short-term enforcement of the amendment is difficult and there may be a buffer period. Furniture companies should obtain relevant legality certificates when purchasing raw materials and gradually disperse the export market. The use of suspicious wood or the United States amended the Lacey Act of 2008, from April 1, 2010, the coverage will be extended to all imported wooden furniture products. According to the amendment, importers of wood products are required to provide basic declarations each time they import plants or forest products. The contents of the declaration include: the Latin name of the plant species; the country where the harvest is harvested; the quantity and size; and the value of the imported goods. If the importer does not know the country of origin or plant name of the forest product material being shipped, the Lacey Act amendment allows for the declaration of the possible name and possible origin of each plant. If the source of the raw materials of the product is defined as illegal, the United States will have the right to punish the product and even have the right to imprison the exporter and the purchaser. The amendment also directly raised the threshold for the import of wooden furniture products into the United States. Small and medium-sized furniture companies or the United States are the largest exporters of Chinese furniture, accounting for 41% of total furniture exports. In 2008, the value of furniture exported to the United States was more than 20 billion US dollars, of which wooden furniture was about 7 billion US dollars. After the implementation of the amendment, the industry analysts generally believe that US import companies will reduce imports of Chinese wood products due to fear of being punished, and furniture exports will be more difficult. At the same time, because of the provision of raw materials, the cost of wood has increased, and the operating costs and transaction costs of wood products companies have also increased. It is highly probable that SMEs without strength will be eliminated. Hua Hushan, manager of Guangrun Furniture International Marketing Department, told reporters that two years ago, the company began to do the globally recognized forest management chain FSC certification, and its content is similar to the Lacey Act, so it is more familiar. “FSC has high requirements for the raw material supply chain. If it is regulated, the role of adapting to the Lacey Act will be very fast.†However, Huahushan said, “The thousands of furniture companies in Dongguan have been FSC certified. There are no more than 100 enterprises.†Wang Huo, executive deputy secretary-general of Dongguan Ming Furniture Club, also said that there are very few enterprises in Dongguan furniture enterprises that can meet the amendment requirements, especially the wood from some furniture factories in Africa. “The raw materials prove that the forest farm needs forest certification, but because the cost is too high, many forest farms have not done it.†How to deal with this situation when buying raw materials to obtain a furniture company that proves that Dongguan exports to the United States? Lu Wenming, the International Cooperation Office of the Chinese Academy of Forestry, warned the company when interpreting the amendments in the media. Since the importers of the United States usually require the exporters to provide relevant materials, in many cases the ownership of the goods has not been transferred to the buyer before the customs clearance. Proof of raw materials is not only an importer's business, but domestic companies must be familiar with the reporting requirements. How to deal with the amendment, Lu Wenming proposed that furniture companies should enhance the environmental responsibility of enterprises, but also to enhance the legal awareness, and ask for relevant legality certificates when purchasing raw materials. In addition, furniture companies must also have good relations with American customers, and they can be properly resolved when problems arise. Wang Hunt said that the amendments are quickly implemented and require forest certification and other support, which is very difficult, so the industry is still waiting to see. If trade barriers hit the industry, it is difficult to have any good solutions. For Dongguan furniture companies, in addition to trying to adapt to the declaration requirements of the amendment, another way is to spread the export market, do not rely entirely on the United States. Hua Hushan believes that “legality certificates are provided by producers or exporters, but producers are going to find lumber merchants, and lumber merchants are going to find forest farms. The links are too long and too wide and take time.â€
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