US Dollar Exchange Rates of
10th
February
2020
China Yuan 6.9871
Report from China
Reduced tariffs on US wood products
The China Customs Tariff Commission issued a notice on 6 February 2020
stating that China will halve the additional tariffs on US$75 billion worth
of some US products as of 14 February 2020 in a bid to promote the stable
development of Sino-US economic and trade relations.
This decision will halve the 10% and 5% rates on a list of US products that
were subject to additional tariffs from 1 September 2019.
The tariffs for 270 items listed in the first section and 646 items in the
second section of Annex 1 to the Notice was adjusted to 5% from 10% and for
the 64 items listed in the third section along with 737 items in the fourth
section had tariffs adjusted to 2.5% from 5%.
Apart from the above-mentioned adjustment, the other measures to additional
tariffs on U.S. products will continue to be implemented.
The tariff rates on most of the logs and sawnwood imported from the US have
been reduced to 5% from 10%. The tariffs on poplar sawnwood and other North
America sawn hardwoods have been cut to 2.5% from 5%.
The tariff rates on most imported wood-based panels, wood crafts and
furniture have been halved to 2.5% from 5%. In addition, tariffs on most of
the imported woodworking machinery, woodworking tools, agroforestry tools
and forestry machinery from the United States will be halved to 2.5% from
5%.
Analysts write ¡°this move is good for timber traders, wood processors and
furniture manufacturers who have been suffering from trade conflict and also
disrupted production and trade due to the coronavirus control measures.
Further adjustment will mainly depend on future development in the economic
and trade relations between the two countries. The commission said other
additional tariff measures will continue to be implemented as stipulated and
they will continue to work on tariff exemptions for imports from the US.
See:
http://gss.mof.gov.cn/gzdt/zhengcefabu/202002/t20200206_3466540.htm
http://gss.mof.gov.cn/gzdt/zhengcefabu/201908/t20190823_3372928.htm
Delay in restarting trade at the main timber markets
Due to the impact of coronavirus epidemic the main timber markets in China
have delayed the start of work after the New Year holidays.
When surveyed it appears the timber markets may return to normal business as
soon as the end of February or the beginning of March 2020.
The timber markets surveyed include:
• Dongguan Zhongtang Yuzhu Timber Market
• Sichuan Da Southwest Timber Market
• Shanhai Furen Timber Market
• Shandong Linyi Wood-based Panel Timber Market
• Jiangxi Nankang Yuzhu Timber Market
• Zhangjiagang Timber Market
• Suifenhe Timber Market
• Foshan Jiujiang Da Zhuanwan Yuzhun Plywood Market
Postponement of March international exhibitions
The timber trade online journal wood365 has reported that in accordance with
the government decree for prevention and control of the coronavirus epidemic
all large-scale trade activities and gatherings shall be suspended during
the epidemic prevention and control period.
A number of exhibition organizers issued delay. So far 6 international
exhibitions will be postponed. The following exhibitions in March 2020 are
postponed.
Fairs postponed include¡±
• 2020 The 30th China (Beijing) International Building Decorations &
Building Materials Exhibition
• CIDE-2020 7th China International Integrated Custom Home Furnishing
Exhibition and China International Door Industry Exhibition
• 2020 DOMOTEX asia/CHINAFLOOR)
• CBD - IBCTF (Shanghai) 2020 - China International Building & Construction
Trade Fair
• China_International_Building_and_Construction_Trade_Fair_
• 43th International Furniture (Dongguan) Fair and Furniture Machinery and
Materials
• CIFF 2020 - The 45th China International Furniture Fair (Guangzhou)
• 45th China International Furniture Fair (Guangzhou)-Home Furniture.html
• 2020 Shenzhen Creative Week & 35th Shenzhen International Furniture
Exhibition
No off-loading in Zhangjiagang Port
Timber traders have learned that the local government in Zhangjiagang City
is implementing strict measures to control the spread of the coronavirus.
The resumption of business at the Zhangjiagang timber market is still
uncertain. Furthermore, there are restrictions on unloading imported timber
arriving at Zhangjiagang Port.
In related news all railway transport between Russia and China has been
suspended except for the Beijing-Moscow international route. Under these
circumstances and where contracts cannot be honoured companies may have the
option of declaring force majeure.
Chinese companies have been advised to contact the China Council for the
Promotion of International Trade (https://www.rzccpit.com/) for advice on
declaring force majeure.
Imported C&F price data series
In an effort to provide more transparency on imported timber prices in China
a new data set is provided below showing average prices for some key timbers
imported.
It should be noted that these average C&F prices are derived from the import
volumes and values as reported by China¡¯s Customs.
 
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