Furniture prices will rise by 15% due to the increase in tariffs on Chinese components

The increase in tariffs is a consequence of the customs reclassification of accessories such as bearings in the EAEU merchandise classifier, the publication highlights.

According to Vadim Vildanov, general director of the large furniture supplier Boyard, conditions for Chinese manufacturers are now stricter than for European ones. The tax on similar accessories from Europe is only 10%. At the same time, the annual import volume of furniture fittings is estimated at $1.3 billion; around 90% of its imports pass through customs in Vladivostok.

“The problem is that anti-dumping duties are imposed for a period that starts from a three-year countdown, that is, from 2021, for a previously imported product. More than one supplier company may not survive these fines,” AMDPR General Director Timur Irtuganov told BFM about the increased duties.

Vildanov added that many Chinese exporters and Russian companies are already rejecting new supplies, since for small companies the amount of customs duties can reach 2.5 million rubles per container. The expert stressed that not all small businesses can pay that money.

AMDPR President Alexander Shestakov stated that domestic furniture production will become more expensive, while imported furniture will remain subject to duties of 9% to 12%. According to the director of the Almaz company, Sergei Zmievsky, the increase in duties will lead to an increase in the cost of furniture by 15%. This is due to the widespread use of guides in furniture production, which account for up to 30% of the cost of certain types of products, for example, those with drawers.

Shestakov added that in mid-November AMDPR sent an official letter to the Ministry of Industry and Trade requesting to discuss with the Federal Customs Service the termination of the requalification of furniture fittings.