As the world’s top 2 largest economies, USA and China often have clashes in their trade. Statistics show that since mid 2018, both USA and China have increased their tariff rates toward each other to around 20%, which is much higher than their rates toward the rest of the world. Their trade war is a lose-lose game. A lot of companies in the two countries have been affected and even gone bankrupt.
Much earlier in 2005, USA set duties of 198% on Chinese bedroom furniture imports. Most of the small and medium-sized furniture exporters in China were affected, as their US partners just would not like to pay such high duties. Some Chinese business owners are smart, and they manage to find a solution to escape the high tariffs. They send the shipments to other Asian countries like Malaysia, then unload and reload them onto new containers. Since the shipments are loaded in Malaysia, they will be given a “Made in Malaysia” certificate instead of a “Made in China” one. However, is this the best solution? Of course not. Transferring shipments only wastes time and causes extra costs.
In fact, the 198% tariff rate applies to tens of thousands of small Chinese furniture companies, which account for only a small part of the USA’s wooden bedroom furniture imports. Another 100+ big Chinese furniture manufacturers, which account for the largest shares, are given a relatively fair tariff rate of 8% up to 16%. The best anti dumping solution lies here.
Our company Gold Stream Group is a hotel furniture manufacturer, and certainly we produce bed frames and headboards to which the high tariff rate applies. The thing is, we have a local Chinese business partner which often buys hotel guestroom furniture from us. Our partner is among the over a hundred companies on which the US set a normal tariff rate. This means that if we export through our partner, the high tariff rate will be escaped. Problem solved!
In short, if you import hotel guestroom furniture from China but want a normal lead time and tariff rate, try working with GSG. We have all the solutions for you.