US Dollar Exchange Rates of
China Yuan 6.3762
Report from China
Adjustment of tariff in 2022
The Customs Tariff Commission issued a notice on 15
December that adjusted some import tariffs, tariffs for
most-favored-nations and conventional tariffs. Also there
were adjustments to tax regulations.
From 1 January 2022 China will apply tariff rates that are
lower than the most-favored-nation tariff rates for 954
imported commodities to assist the manufacturing sector.
In accordance with free trade and preferential trade
arrangements signed by China and partner countries the
conventional tariff rate will be implemented for some
commodities originating from 29 countries. Signed
bilateral free trade agreements between China and New
Zealand, Peru, Costa Rica, Switzerland, Iceland, South
Korea, Australia, Pakistan, Georgia and Mauritius tariff
rates will be reduced.
The Regional Comprehensive Economic Partnership
(RCEP) and the China-Cambodia Free Trade Agreement
took effect from 2 January 2022 and reduced tariffs will be
From 1 July 2022 China will implement a seven-step
reduction of the most-favored-nation tariff rates for 62
information technology products. After the adjustments
overall tariff rate levels will be maintained at 7.4%.
Changes to HS codes for wood products
Some import and export tariff codes have been changed.
In all 84 customs codes have been changed, 60 added and
24 deleted. The detailed changes are as below.
Added HS codes for wood products are as below.
Sawdust or sawdust sticks£¨4401.3200¡¢4401.4100
Plywood £¨ 4412.4100¡¢4412.4200¡¢4412.4911¡¢
Radiata pine made frame of pictures, photos and
Construction woodworking products, including glued
laminated timber, cross-laminated timber (CLT) and
I-beam £¨ 4418.1100 ¡¢4418.1910 ¡¢4418.1990 ¡¢
Wood tableware and kitchen utensils£¨4419.2000£©
Tropical wood carving or bamboo carving £¨
Wood furniture parts£¨9403.9100¡¢9403.9900£©¡£
Deleted HS codes of wood products are as below.
Sawdust, wood waste and chips£¨4401.4000)
Plywood £¨ 4412.9410¡¢4412.9491¡¢4412.9492¡¢
Radiata pine made frame of pictures, photos and
Construction woodworking products, door, window,
frame and threshold £¨ 4418.1010 ¡¢4418.1090 ¡¢
Wood or bamboo carving£¨4420.1011¡¢4420.1012
Leather or bonded leather faced chair which can be
used as bed£¨9401.4010¡¢9401.4090£©
Wood furniture parts£¨9403.9000£©
Pine wood imports ¨C only through designated ports
The quarantine requirement for imported pine (Pinus spp)
wood (including logs and sawnwood) from countries
where pine wood nematode (Bursaphelenchus xylophilus)
infestation have been identified has been released. This
aims to prevent the introduction of pine wood nematode.
The quarantine requirement will be effective as of 1
February 2022 and applies to Canada, Japan, Korea,
Mexico, Portugal, Spain and the United States of America.
The quarantine requirements are as below.
Prior to shipment
Prior to export, the phytosanitary authorities of the
exporting country shall take samples from each batch of
logs to be exported to China for laboratory testing for
Bursaphelenchus xylophilus. If detected the logs shall not
be exported to China.
Even if pine wood nematode is not detected each batch of
logs should be fumigated with methyl bromide and
sulfuryl fluoride before export to eliminate longhorn
beetles and other forest pests.
Prior to export heat treatment should be carried out for
each batch of sawwood to kill pine wood nematode,
longhorn beetles and other forest pests. If heat treatment is
not carried out samples shall be taken for laboratory
testing then the goods shall be fumigated.
The fumigation or heat treatment shall be carried out under
the supervision of the competent department of the plant
quarantine office in the exporting country to ensure that
the quarantine treatment is effective.
The plant quarantine office in the exporting country shall
issue a plant quarantine certificate for the timbers that
passed the quarantine inspection.
The type, duration, ambient temperature and dose of
fumigant should be indicated in the plant quarantine
certificate for logs or sawnwood tested and fumigated and
the following statement shall be included in the certificates
¡°This consignment of pine wood has been sampled and
tested in the laboratory and Bursaphelenchus xylophilus
was not detected.¡±
In addition the centre temperature and duration of heat
treatment shall be indicated in the plant quarantine
certificate for the sawnwood.
Pine imports shall be through designated ports only, these
ports are :
Lianyungang Port and Nanjing Port in Jiangsu Province.
Beilun Port, Zhoushan Port, Wenzhou Port and Taizhou
Port in Ningbo city of Zhejiang Province.
Fuzhou Port (Mawei and Jiangyin) in Fujian province.
Huangdao Port, Rizhao Port, Rizhao Lanshan Port and
Dongjiakou Port in Shandong Province.
Foshan Nanhai Shanshan Port, Zhaoqing New Port,
Huangpu Port, Dongguan Port, Zhuhai Wanzai Port and
Shantou Guang¡¯ao Port in Guangdong Province.
Custom furniture market forecast
China¡¯s custom furniture industry has developed rapidly in
recent years growing 10-20% annually. The Covid
pandemic had an impact on the custom home furnishing
industry at both the production end and the customer end
and the growth rate is likely to fall but rebound when the
pandemic is over.
It has been estimated by the China Commerce Industry
Academy that the market size of China¡¯s custom furniture
industry will likely be RMB427 in 2021 and will rise to
RMB473 in 2022.
GGSC-CN Index Report December 2021
In December 2021, China's PMI index registered 50.3%,
an increase from the previous month and in
the expansion range (above 50%) for 2 consecutive
In December production and manufacturing in timber
industry contracted compared with the previous
month reflecting the decline in export orders for most
enterprises. It was reported that the price of raw materials
fell for two consecutive months.
The GGSC-CN comprehensive index for
December registered 47.5% (52.0% for last December and
55.6% for December 2019) an increase from the previous
month and was below the critical value of 50%. This
indicates that the operations of the forest products
enterprises represented in the GGSC-CN index shrank
from the previous month. See Figure 1 for more details.
Oak and Zingana are in short supply.
Products in short supply
Commodity for which the price has been increased
Waterproof agents, base material, glue, formaldehyde
Commodity for which the price has declined
Colored paper, Eucalyptus MDF, Eucalyptus fuelwood,
In December 2021 three sub-indexes of GGSCCN
increased and one decreased. The production index
registered 37.5%, an increase from the previous month but
still below 50% for three months. Production from forest
products enterprises represented by GGSC CN was worse
than that November.
The new order index registered 56.3% in December an
increase from the previous month reflecting the ability of
enterprises to obtain orders was better than in November.
Among them the new export order index registered 31.3%,
an increase from the previous month.
The main raw material inventory index registered 43.8%, a
decline from the previous month. This indicates that the
raw material inventory of the forest products
enterprises was less than that of last month.
The employment index registered 56.3%, an increase from
the previous month while the supplier delivery time index
was 37.5%, a drop from the previous month indicating