Two Furniture Environmental Protection Acts Launched in the United States

The California State’s demanding regulation of formaldehyde emissions from wood-based wood-based panels (CARB Act) is well known in the industry and is known as the most stringent standard in the world. The reporter learned from the Municipal Bureau of Foreign Trade and Economic Cooperation that the US President Barack Obama has officially signed the "Complex Wood Products Formaldehyde Standards Act" based on the CARB Act, which will be implemented throughout the United States on January 3, 2011. According to industry sources, this will have a greater negative impact on many furniture export enterprises in the city.

According to reports, the current CARB Act is a regulation promulgated by the California Environmental Protection Agency EPA in June 2007. It sets the world's most stringent standards for formaldehyde emission from wood-based wood-based panels. It is mainly applicable to hardwood plywood, particle board, MDF, and all products made from these plates.

Wood products such as furniture have always been the bulk export commodities of our city. Jiaxing furniture exports account for 20% of the total value of furniture exports of our province, and more than 60% of our products are exported to the United States. According to the relevant person in charge of the Municipal Foreign Trade and Economic Cooperation Bureau, Jiaxing has a large number of export companies, such as office furniture, cabinets and flooring, and other composite wood products. The new bill introduced by the United States restricts the release of formaldehyde from composite wood products, will increase production costs and detection costs for production companies, extend customs clearance time at ports of importation, and may be notified by foreign countries or even returned due to the increase in limit standards.

Zhejiang Taisheng Industrial Co., Ltd. is Jiashan's largest furniture export company in the United States. Its products are more than 90% of the market in the United States, with an annual export value of about 60 million US dollars. Yang Enguang, general manager of the company, told reporters that the implementation of the above-mentioned bills was gradual. From 2009 to 2011, the standards gradually increased, so Taisheng Company stepped on the rhythm and prepared in advance during the first half of each standard "renewal." Work, put forward product certification requirements for downstream raw material suppliers. This circumvented the impact on exports to some extent.

However, the new bill is unavoidable for corporate profits. It is understood that the average gross profit of furniture companies is currently 30% to 40%. Because the new law is forcing companies to upgrade their raw materials, it is bound to increase their production costs. Hu Minhao, chairman of Zhejiang Longsen Wood Industry, told reporters that using the E0 board instead of the E1 board, the difference in the glue water is only about 3 times. Yang Enguang also said that the new bill will increase the cost of the company by at least 10%. However, for the sake of market protection, this part of the loss will not be passed on to the agents.

In response to the recent United States frequently raising furniture into the US threshold, the Municipal Bureau of Foreign Trade and Economic Cooperation reminded the city's furniture companies to make early adjustments. It is recommended that companies strengthen the procurement management of raw and auxiliary materials, reassess suppliers, and select raw materials for composite wood products that meet the requirements. Business, turn off the source of good things.