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The export tax increase was too heavy, and African log suppliers launched a strike. Huacheng Import

2023-02-03

According to Huacheng Import and Export Data Observation, as the Republic of Congo banned the export of logs from January 1, 2023, the export control of African timber has been tightened. The Gambia and other 16 African countries also banned all timber exports as early as July 1, 2022 in response to the call to suspend the trade in mahogany. Although this decision of the Congo is contrary to the guiding decision of the Central African Economic and Trade Union to suspend the log export ban indefinitely on October 28, 2022, compared with Cameroon, which is engaged in timber trade with the forests of the Congo, this country that has not prepared for the log export ban for many years has virtually provided great pressure.

The decision of the Congo was seen by many as a message to Cameroon. Cameroon can only temporarily increase its log export tax significantly to meet the temporary demand of the ban buffer period. However, such high tax increases are too heavy for many producers engaged in log trade.

On December 23, 2022, some wood industry practitioners sent a strike notice letter to the Prime Minister of Cameroon, announcing that they would carry out strike activities from January 2, 2023.

Against this background, since January 2, many timber operators have been on strike and suspended customs declaration. Some operators have stopped logging and suspended operations due to their single focus on exports and the impact of the sharp increase in taxes. Huacheng Import and Export Data Observation reported.

According to the French Radio International in Africa, Alain Karsenty, an economist and public policy expert, said that the risk of excessive tax pressure will cause many formal companies to close down, leading to some logging activities turning into informal, and trade will become more opaque, Huacheng Import and Export Data Observation reported.

The Association of Employers' Organizations in the Timber Sector of Cameroon (GFBC) also believes that such heavy taxes are too heavy to create new income for the country and will also threaten the survival of most companies.

For timber producers importing African logs, the log export ban has become a foregone conclusion, and there is still time for business adjustment. However, for purchasers, the increase in taxes in Cameroon is bound to affect the changes in timber prices and increase the cost of imported timber. At the same time, with the recovery of domestic demand for African ebony, African red sandalwood and small zebra, Cameroon's price advantage over Gabon's timber is no longer, and the domestic African timber market may also experience a small fluctuation. Huacheng's import and export data observation report.


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