Since January 2005, Russia has overtaken Indonesia as the biggest hardwood lumber supplier (in volume) to China, and is expected to consolidate its
position in the future. Russian hardwood imports compete with other suppliers (notably the USA) by
keeping costs down and this is helped by low road
transportation charges and a system of preferential
tax treatment.
Despite the elimination of the “double rebate”,
announced by the Chinese government in June
2004, market sources indicate that some border
trade still benefits from reduced duty and VAT.
According to local customs statistics, roughly 90%
of Russia's logs and 70% of its lumber enter China
through border trade. The remaining 30% of
Russian lumber is shipped directly to Southern
China, primarily to the Changjiang and Pearl River
Deltas, where the heart of China’s furniture
manufacturing is. |
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