It is announced by the State Government, Ministry of finance and State Administration of Taxiation that from Nov, 1st, 2008, the exporting drawback of some labour-extensive, high-technological and high additional value products will be upshifted, thereinto some furniture drawback is going to reach 11%, or 13%. As a whole, it is a good news to the whole industry. However, it does have impact on the enthusiasm of furniture exports, but the impact is very limited.

According to the states notification, the drawback of some wood funiture used in bedroom and kitchen will be upshifted to 11% and that of stone furniture will be 13%. During the recent two years, the exporting drawback of furniture industry has experienced two stages of declination, from 13% to 11%, then from 11% to 9%. Based on the surplus of 25% of  last year, the total exporting volume of wood furniture has declined by 1.85% during the first 8 months of this year, and the exporting value only increased by 6%. However, in the past the drawback was relatively lower because wood furniture was misunderstood as resource-wasting, in fact, most of the wood furniture is made from imported and fast-grown timber. This time the state government decide to upshift the exporting drawback because it will increase 2% of the industry profit thus do good to the whole industry, and rather than the global econimic crisis lead by American subprime lending crisis, it will have very limited impact on furniture exports.