Dave Shady Larsen
Well-known member
I wonder if this will hurt the import decoy prices LOL!
Chinese imports facing increased costs
A recent change in Chinese policy has eliminated or reduced Value Added Tax (VAT) rebates for many Chinese factories. This policy change affected 2,831 product classifications, or 37 percent of all classifications in the tariff.
For many Chinese factories, the VAT rebate was the only profit the factory made on a transaction. With the VAT rebate no longer available, these factories are increasing prices by two to 13 percent.
The VAT rebate reduction, combined with the re-valuation of the Chinese Yuan and the ever-increasing cost of raw materials, has already resulted in price increases for most Chinese-manufactured metal products.
These price pressures will continue for the next six to 12 months.
In the short-term, products will still be sourced from China. However, long-term strategy is to diversify import sources and continue to pursue other opportunities in Vietnam, India, Mexico, Indonesia and a possible return to domestic suppliers.
Chinese imports facing increased costs
A recent change in Chinese policy has eliminated or reduced Value Added Tax (VAT) rebates for many Chinese factories. This policy change affected 2,831 product classifications, or 37 percent of all classifications in the tariff.
For many Chinese factories, the VAT rebate was the only profit the factory made on a transaction. With the VAT rebate no longer available, these factories are increasing prices by two to 13 percent.
The VAT rebate reduction, combined with the re-valuation of the Chinese Yuan and the ever-increasing cost of raw materials, has already resulted in price increases for most Chinese-manufactured metal products.
These price pressures will continue for the next six to 12 months.
In the short-term, products will still be sourced from China. However, long-term strategy is to diversify import sources and continue to pursue other opportunities in Vietnam, India, Mexico, Indonesia and a possible return to domestic suppliers.
