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Archive for the ‘Uncategorized’ Category

Are you Compliant? What Furniture Importers NEED to know about the Lacey Act

In Uncategorized on January 27, 2010 at 2:00 am

New penalties on illegally sourced woods could cause innocent buyers up to $200,000 in fines, forfeiture of goods, and possible imprisonment.

Are you compliant? Lacey Act restrictions go into effect April 2010.

The main change to the 100-year-old Lacey Act is that it is now against the law to trade or own illegally sourced animals/agricultural materials (including wood), regardless of their point of origin. And starting in April, all companies will be required to provide detailed documentation on the source and origin of the imported agricultural products.

Details on what importers and furniture manufacturers need to know are available from Furniture Today, in a free White Paper.

The major issue we can see is that all importers must file a detailed declaration for incoming agricultural products specifying species and country of origin, no matter where the product is assembled. So a coffee table made from Indonesian rubberwood and American cherry veneer would need to include both species and origins.

An important note to importers: plywood, MDF, and fiberboards alone can sometimes contain over a hundred species of wood, and it seems that industry pressure has won out. Until further notice, the APHIS has published a guidance document with regard to composite, recycled, and/or reused materials. Basically, APHIS is instructing importers to indicate the type of material (e.g. MDF) under “plant scientific name”. The link above also shows an example to help fill out the document.

For now, there is no specific burden on the importer to provide documentation on the legality of the materials, but that certainly is the intent. This means that importers ARE required to ensure that their immediate purchase is legal, as well as attempt to trace the origin of the materials back to its point of harvest to ensure all steps along the way have been made in accordance with local and international law. If imports are found to be “tainted”, then the importer can be prosecuted to the full extent of the Lacey Act.

To download the Declaration Form, click here

Please note that packaging materials do not need to be submitted in this documentation; but they still need to be heat-treated or fumigated with methyl bromide and include an approved international mark certifying treatment.

The Official US Government website for the Lacey Act is: http://www.aphis.usda.gov/plant_health/lacey_act/index.shtml

Those who file electronic customs forms will note that they will automatically be prompted to enter Lacey Act declaration information.

This type of documentation is becoming more necessary in countries around the world, and our industry needs to support legally harvested materials. But, it should be noted that the burden of proof falls on the US government, so it is not clear how easily they will be able to enforce these regulations.

Those who are attending the Las Vegas Market this Febuary should note that there is a and ECO conference being held on January 31, that is specifically covering the Lacey Act.

GoodFactories.com will continue to update this story as it develops…

Material Costs Bouncing Back?

In Uncategorized on October 23, 2009 at 6:46 pm

I recently received a very interesting report on raw material costs from a lighting factory.  I’ve been aware of the major drop in material costs over the last year, but I did not anticipate that they would be climbing back so quickly!

Iron Cost in RMB

Iron Cost in RMB

What I really find interesting is the urgency that this factory seems to have when you compare costs to the recent raw material spikes in 2007-08.  We are still more than 50% below peak prices.  It seemed that all suppliers are quick to raise prices, but slow to drop them.  I understand their concern with recent trends not looking optimistic; but let’s hope that the speculators calm down and real business can run smoothly. (Please see the bottom of Oil Price Graph, to see how trading volume has more than tripled since 2000!)

Oil Price and Trading over time

Oil Price and Trading over time

It appears to me that this email is a marketing attempt to drive more sales over the slow summer season.  This might actually prove to be a smart approach to push companies who will be buying product in the near future.  Overall, I do believe the numbers they are relaying to us are accurate and all buyers should be aware.

Another concern I have is labor costs in China.  Currently, we are hiring another data entry position, and it seems that we will have to pay about 2400 RMB per month to hire someone with decent English writing skills.  Also, just a few months ago when we were looking for factory workers, labor wages in Guangdong had risen to around 1100-1500 RMB per month, and the total cost per month for an average factory worker now costs over 200 US Dollars.  There may have been some increase in efficiency over the years, but value-oriented experts have been buying more and more outside the developed industrial regions in China,  looking to other countries instead.  My impressions from Vietnam, Indonesia, and India were that the total cost for an average factory worker is still below 100 US Dollars.

Below is the email from the factory, World of Lights.

Dear valuable customers:

The material price dived greatly causing by financial crisis last year. After one year’s consolidation by stock market and oil price, which is slowly drive to the previous high point.

The above 4 charts are the price trend for our materials, actually, almost all the materials we need are going up in the last few months, However, all our quotation until now are still keep on the bottom on Feb. 2009 when all the material costs at the lowest point.

Copper Price Graphs

Copper Price Graphs

We quite understand what situation our clients are, while the financial crisis still not released completely, market just turn to be a little better, if increase the price, we know this will be a great hurt to all our clients. So from March 2009 to August 2009, our factory and our suppliers endures material slowly rise, we try out best to digest the price increasing by ourselves, Meantime, we always keep the lowest quotation same as this Feb., 2009’s while the material cost at the bottom, to assure all our clients can move forward in the crisis. But now we can see the future that we may have to endure more and more pressure.

From the attached 4 charts we can see, our material cost are continually going up, the increase percentage even up to 40% at lease for iron. Of course, we still have to keep Feb.’s lowest price in this August and September. But what we worried about is that the coming traditional midseason after Nov. and the coming year, if the material still continually go up 20%-30% again, I am afraid that we will really have no ways to endure any more, so we write this email to communicate with all our clients, if you have any purchasing schedule, we suggest you deal with the stock as soon as possible or prepare in advance. We will still keep the Feb.’s lowest price in this Aug. and Sep. Thanks!

Nickel Price Graphs

Nickel Price Graphs

Slow Website

In Uncategorized on May 1, 2009 at 12:03 am

Ugh!

We recently made updates to GoodFactories.com, and it has seemed to really screw us up!

2 weeks now, and I feel no closer to a solution…

This is really frustrating because I don’t understand enough to dig into the problem and fix it myself. Everybody else seems baffled… But, I’m hoping for some good luck, it appears to be something in the database…

What I’ve learned that could be of use to others? Making updates and changing servers is not as easy as it sounds…

Anyway, hopefully everybody can show patience, I’ll update the blog with the new features once they have been stabilized!
————–Updated 5/7/09—————

We have stabilized the website, it is fast again!

We are also working on improving world wide speed this next week…

Singapore Furniture Fair

In Uncategorized on March 13, 2009 at 3:47 am

Wow what a cool trade show…  Lets start out this review with the basics, and not how cool I think the city is…

The trade show is pretty small, maybe 200-300 furniture and home decor companies.  At least 80% are furniture, and maybe 20% home decor (although many furniture manufacturers do sell accents, too).

They have a lot of nicer goods suppliers from around Asia.  Especially from Indonesia, China, Vietnam, and Mylasia.  Whats nice, is that you can get your work done, with a very nice assortment of product in a few days.  There were lots of Austrailians at the show, and it seems like the show is still primarily focused on exporting, and not as much on the actual Singapore market.

This is also the most diverse furniture show I’ve been to.  If you go to Manila FAME, or Ciff Guangzhou, all those shows tend to have a majority of local suppliers, but in Singapore, its pretty diverse, with suppliers from Singapore, Taiwan, China, Malysia, India, Indonesia, Vietnam, and Thailand.  They are a bit higher end suppliers, but the value still seems good, and the design content is really good.

The only show I’ve been to that is more diverse, is the HK Housewares show, but that is not a furniture show, but has more home accents.

So, onto Singapore.  First off, there is a Hard Rock Cafe in the Airport!  Getting into the city is super easy, and only costs $1.20 (US) via the MRT (subway).  It goes strait to the Expo, too.  So, getting around is simple, and clean.  I’ve never been in such a clean city.  The tunnels underground are spotless and polished.

If you can find a good deal near the Raffels or anywhere downtown, its fantastic.  Really good curries can be had in the Indian Quarter (? not sure about that name).  And little pockets of nice restaurants and outdoor food stalls are scattered around the Central Business District.  Overall, I had a great time and saw some really cool products.  If the furniture indstry is really slow, the vendors here seem less worried and were quite busy.

The Top B2B sourcing websites

In Uncategorized on March 2, 2009 at 3:48 am

The Top B2B sourcing websites, Old Giants and Rising Stars

Everybody sourcing products from overseas has heard of Alibaba, but for people looking for great deals on products directly from factories should check out this list.  New websites have been hitting the scene, and some of them are really helpful for the larger businesses or the work at home Ebay seller.

Niche Directories – These websites are focused on a particular industry and often provide better tools and filtering of information.

MFG.com – The best website for sourcing parts.  Upload your projects, and get quotes from suppliers around the world.  Also, the members have been active in leaving feedback on suppliers.  You can now also source textiles using MFG.  Jeff Beezos from Amazon.com is an owner of this company.

Panjiva.com – Great for sourcing garment manufacturers, their approach is different from other sites.  They offer supplier ratings by reviewing the companies current shipments and customers.  They offer information on shipment amount, and the type of customer and shipments.

Goodfactories.com – Finding furniture manufacturers and home décor suppliers has never been so simple.  Features include supplier locations on local maps of China, a rating and review system, furniture fair finder, and a reliable verification system.

Trade Intelligence – Ever wanted to know who your competitors have been buying from?  US customs shipments reports are open to the public.

Zepol – The most searchable database for US customs reports allows the user to create their own custom filters.  The system works within a web browser, and allows an unlimited number of searches.

Import Genius – Offers searches by customer name, product name, and supplier name.

Trade Mining – A lower cost system that allows a user to download trade intelligence reports one report at a time.

Piers – The largest trade intelligence company.  Piers data is entered and analyzed, then put into their database.  Reports are much better looking, but searches are more difficult and results may not have as much detail.  They also offer trade intelligence on other countries.

Manufacturers and Wholesale Suppliers- Good websites for smaller orders and selling on Ebay.

Doba – Sell goods on Ebay without needing stock.  Buying though Doba wholesale partners allows goods to shipped directly from the wholesale warehouse.  The cost to the seller is 50% below retail, and the seller can select their own profit margin.  Doba charges a monthly fee.

World Wide Brands – Allows you to search for suppliers, manufacturers, and wholesale companies.   They charge a monthly fee.

B2X.com – Buy from China- Pain Free.  B2X allows users to search manufacturers products online.  No experience needed, B2X will ship the goods to you, and take care of all importing quality inspections.  B2X charges an unstated fee that should be a great deal for smaller customers looking for good values.

DHGate – A platform for buying goods directly from manufacturers in Asia.  Be careful of branded products, as there are lots of fakes being sold by companies who advertise on this site.  But, there are great values if you know how to use it, and the site allows feedback.

The Wholesale Forums – An online forum with 5000 active members discussing goods, suppliers, and products.  Very good information for people looking to start buying and selling online.

Liquidation and GoWholesale – A family of web sites that offer off-price goods for retail and discounts for wholesale.

Simplx – Another large platform that allows users to sell goods directly from a drop shippers warehouse.

Large Manufacturer and Supplier Directories – If you want to work directly with factories, these are the best large websites.  Please be aware if you are looking for a factory that many companies advertising on these sites are trading companies.

Alibaba – The largest online sourcing community has suppliers from almost every country in the world.  Also included are forums where your sourcing and trading questions can be answered.

Global Sources – The most reputable sourcing website.  Global Sources verifies suppliers and works more closely to ensure smoother sourcing for its users.  Global Sources also operates many large trade shows in Asia and has many print publications for sourcing.

Made-In-China – The 3rd largest sourcing website in the world.  They also work with SGS and supplier audit reports can be purchased online.

Global Market – A newer souring website offers a huge amount of suppliers and products.  Also, you can email them projects, and they will send you back a list of qualified manufacturers.

India Mart – As the name implies, a huge directory of Indian suppliers and products.

Product Pilot – All types of suppliers and products are listed in the most visually appealing of the large sourcing websites. An arm of the Messe Frankfut tradeshow group in Germany, most of the suppliers listed have also exhibited at their events, but since these events are so world wide, the website gets a good assortment of manufacturers

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