Russian Exposition demands concession in custom duties
The Russian Exposition that participated in DelhiWood 2019 demanded concession in the prevailing customs duties on import to popularize Russian sawn wood and birch plywood in the Indian market.
The Russian exposition claimed that the 10% Basic Duty and 4% Countervailing Duty (CVD) charged by the Government of India on timber imported from Russia is one of the prime reasons behind lukewarm response to the Russian timber in the Indian market.
Speaking to Modern Woodwork, Mr. Chukin Sergei, Adviser of International Cooperation and Fairs who also represents Association of Furniture and Woodworking Enterprises of Russia said, “Even though the Indian woodworking and furniture industry is interested in Russian timber, the total turnover of mutual trade between the two countries is not so good. If we look at the statistics, Russian birch plywood stands at the sixth place in Indian imports despite the fact that birch plywood is very much popular among small traders in India.”
He added, “We had a consultation with business communities in India and also with our Russian counterparts and concluded that we should collectively request Indian government to reduce heavy custom duties on Russian timber. If the Indian Government do so then the demand for Russian wood is expected to go up and as a result India will also receive good revenue due to the increased volumes. We have already taken some steps in this direction. Last year we had discussed this issue with Russia India Trade House and signed a memorandum to reduce these duties.”
“I do hope that Indian Government would positively think over our demand considering the rich legacy of friendship and trust between India and Russia,” concluded Mr. Sergei. Mr. Ilya Nesterenko, Project Manager, Department of Russian Exhibitions Abroad was also present during this special interaction with Modern Woodwork.
Active Presence in DelhiWood
Four Russian companies participated in DelhiWood this year. Here is a brief profile of these companies and product offering.
1 Arkhangelsk Plywood Plant JSC: It is one of the largest Russian manufacturers of plywood products. It manufactures plywood forinterior, exterior and to use it for fire-proof purpose. In terms of the quality of its products, the company is one of the three best plywood companies in Russia. The company has been in the market of furniture production since 1959. It invites furniture stores, retail networks across the globe who are interested in selling Russian furniture made from plywood and birch on the basis of mass production. The company is looking for mutually beneficial cooperation with furniture companies.
2 Forest LLC: It is one of the leading manufacturers of housing sets of profiled, glued timber and materials necessary for high-quality housing assemblies. The company uses the best selection of wood from the North of Russia. The company offers a wide range of high-quality woodworking products including edge-surfaced lumber, planed moldings and pellets. The annual production capacity of the company is up to 30,000 cubic meters per year.
3 Cherepovets Plywood & Furniture Plant (CPFP): It is the leader among manufacturers of chipboard and film-faced chipboards in Russia, one of the ten major enterprises of the woodworking industry. CPFP is a reliable supplier of high-quality products and known as the best exporter of Russia since 2005.
Founded way back in 1958, CPFP today is a group of commercial enterprises engaged in the production of birch plywood, sawn timber, chipboard and film-faced chipboard as well as wood wool cement boards.
4 Murashinskiy Plywood PlantLLC: It is a new high-tech and eco-friendly factory that fully conforms to the international standards. In less than two years, a modern plant for the production of large-format birch plywood with a capacity of 60,000 cubic meters per year was built in the city of Murashi in Kirov region. The solemn launch of the first line of the plant and receipt of the first batch of products took place on December 15, 2017. The company manufactures moisture-resistant large-size birch plywood (EXT). The company plans to develop and increase production capacity to 1,20,000 cubic meters. The second production line is expected to be launched in 2019.