In a press briefing, CFIP board chairman Nick de Lange explained that the CFIP is asking for a zero tariff for imported timber and other wood materials to assure a stable supply of wood for the furniture industry.
He complained that even though the temporary log ban has been lifted in some areas, a shortage of timber and other wood materials continues to exist since the government has not been able to verify illegal logging activities.
With the disrupted supply, the CFIP believes that the government would be better served by lifting the tariff on imported timber and other wood materials.
According to De Lange, by relying more on imported timber and other wood materials, the government would also be able to ease the pressure on the country’s forest resources.
At present, De Lange disclosed, lumber has a seven-percent duty and a 10- percent tax, wood panel is slapped with a 10-percent duty and 10-percent tax, while wood veneers carry a seven-percent duty and 10-percent tax.
On the other hand, imported furniture, De Lange said, now have much lower duties ranging from zero to five percent as they are included under the ASEAN’s accelerated free trade scheme.
Thus, the raw materials of local furniture makers is even more expensive with imported furniture.
The furniture industry, De Lange said, are composed primarily of microenterprises and provide employment for almost 500,000 workers.
The furniture industry, furthermore, De Lange cited, exported P294 million worth of products last year and the domestic sale is also estimated at about the same amount, for a total industry worth P30 billion.