Panels & Furniture Asia March/April 2018

12 NEWS
U.S. SOUTHERN PINE LUMBER EXPORTS
REACH RECORD US$312 MN IN 2017
EXPORTS of Southern pine lumber
reached a record US$312 million in 2017.
Of this volume, exports of pressuretreated
lumber also hit an all-time high
of US$175 million, a 28 per cent increase
from the previous year, according to the
Southern Forest Products Association.
“Rising demand for Southern pine
lumber is undeniably linked to the
industry’s efforts to introduce this
species to buyers worldwide,” said
Jerry Hingle, Southern Pine Council’s
international consultant.
Exports have jumped sharply
in regions targeted by the SPC’s
international market development
efforts.
Record sales were achieved in China
and emerging markets in Southeast Asia,
Central America and South America. ℗
HEAVY INDUSTRIES TO PAY FOR WASTE
DISCHARGE UNDER CHINA’S NEW
ENVIRONMENT LAW
By Lydia Chen, Canada Wood
Stock image by
veeterzy on Unsplash
CHINA’S first environment protection
tax law kicked in on January 1 this year,
replacing a pollutant discharge fee
system which, for decades, had been in
place but lacked teeth.
Under the new law, companies will
have to pay levies for waste discharged
into the environment—such as sulphur
dioxide and sewage. They will also be
taxed for noise pollution.
The tax rates range from 1.2 – 12
yuan per unit of atmospheric pollution;
1.4 – 14 yuan per unit of water pollution;
five yuan per tonne of coal waste; and
1,000 yuan per tonne of hazardous
waste. They are determined based on
each company’s operations. For example,
a furniture manufacturer that earns
50 million yuan per year may report
an overall tax rate of 300,000 –
700,000 yuan, or up to a two per
cent increase on the factory price of
its products, according to industry
analysts.
The new law is intended to discourage
heavy-polluting industries, many of
which have flocked to the country
to take advantage of low operating
costs and weak environmental
regulations.
China has imposed a “pollutant
discharge fee” since 1979. However,
loopholes in the system have seen
companies evading taxes, especially
the bigger ones that contribute to the
local economy. Now any tax reduction
or exemption request must undergo
strict approval procedures and be
documented.
Tackling pollution was listed as one
of “three tough battles” China aims to
win in the next three years, according to
the Central Economic Work Conference
that concluded in December.
“The launch of the environmental
tax is more serious than the pollutant
discharge fee system and marks
China’s first real effort to use financial
mechanisms to curb pollution,” Liang
Yinlei, a partner at Ernst & Young
Greater China, said in an interview with
Jiefang Daily. “Some manufacturers
may buy more environmentally-friendly
equipment to reduce its sewage waste
in order to pay less tax.”
Between January and November
last year, China investigated over 35,600
cases of environmental violation, a 102
per cent year-on-year increase from
2016. ℗
March / April 2018 • Issue 2 • PANELS & FURNITURE ASIA