CIFF BR sources target U.S. buyers
High duties pose problems
Thomas Russell -- Furniture Today, April 30, 2007
Guangzhou, China — Wood bedroom manufacturers showing here at the 19th China International Furniture Fair jockeyed for buyers, particularly from the United States.
For some, that task was easier said than done. That's because some manufacturers still face high import duties on bedrooms shipped to the United States.
That includes Geyi Furniture, which has a 198.08% duty on bedroom. For that reason, it exports its line mostly to the Middle East. It only does a little U.S. business, mainly in categories such as dining room, occasional and upholstery.
"The U.S. market is difficult for us because of bedroom," said David Yau, export sales manager.
Gainwell Furniture also has a 198% duty, according to company sales associate Jimmy He. Still, the United States and Canada remain its biggest export markets, thanks to its mix of dining room, occasional tables and chairs, and home entertainment and library wall units.
It sells bedroom to other countries, but hopes to achieve a lower duty so it can sell some in the United States too.
Monarchy Furniture Mfg. also had a 198% duty on wood bedroom, but was still generating interest among U.S. buyers for its hand-carved, traditional fabric upholstery and matching occasional. A number of U.S. companies visited both the market showroom and the Hangzhou-area factory during the show, said company CEO Henry Zhu.
He said that despite the high bedroom duty, the United States remains Monarchy's largest export market, representing about 70% of sales, followed by 20% for the Middle East and 10% for the domestic China market.
Companies with lower U.S. duties on bedroom furniture promoted that fact at the show. Omiga Solid Wood Furniture and Hong Kong Mei Ja Furniture, for example, had signs at their showroom entrances touting their 7.24% duties.
