International Forum in Kazakhstan

July 2,2014 inKazakhstan, Almaty the second International Forum: "Prospects for the development of trade and fur goods between the regions of Eurasia and IFF-IFF-Asia (China)" under the motto: "Silk Roadof the fur industry" was held.

The Forum was attended by the heads of national fur associations and unions ofRussia,Ukraine,Kazakhstan,TurkeyandChina, representatives of governmental and non-governmental agencies, representatives of the fur business and other organizations, with the active participation of the media.

The prospects of fur trade and other areas of cooperation among the countries included in the regions of Asia and Eurasia, as well as the development of measures to prevent falling poor quality fur goods, contraband and of counterfeit origin into the countries of the Customs Union andUkrainewere discussed.

President of the Russian Fur Union Mr Sergei Stolbov said the venue for the Forum was not chosen accidentally.Kazakhstanis on the forefront of the fight against counterfeiting and smuggling, so we need to join efforts with Chinese fur business to protect the market of the CU countries from falling into such products.

Results of last fur trade season inRussia– 30% drop in sales, which is significant. But luxury goods were sold out everywhere. In the warehouses of trade enterprises there are a lot of finished fur products left, which can have a negative impact on the market of the upcoming sales season.

In general, the prognosis is optimistic, serious drop in fur raw materials, which occurred at this year's auctions, prices have fallen by almost twice compared to the previous season when they reached the highest for the time of the fur industry and the world international auctions. As you know, the world production of skins of farmed animals reached 80 million.The optimum number that can digest the market - it's not over 60-65 million. Serious drop in prices for furs will weaken the price pressure on the buyer of finished fur products by 20-30% as in the storage remain expensive furs, the new production will be cheaper, the situation with sales should stabilize and stop falling.

 President of the Ukrainian Association of Furriers Mr Igor Zvarych spoke about international ties of fur enterprises ofUkraine, about their the prospects and realities. He noted that due to the crisis fur production declined by about 40%, but it is very likely to restore it in a short time. He recalled that during the Soviet eraUkrainewas a leader in processing of fur raw materials and if there is demand, there is sufficient capacity to resume performance.

China to Ukraine is one of the main economic partners, bilateral trade is about $ 10 billion. But as for the fur goods, unfortunately, the question of counterfeit and anti-smuggling is a very topical forUkraine. Goods imported with partial payment of customs duties, with a huge underestimation of the customs value, and about 30% of all falls into the category of contraband and imported under the guise of other goods that are not dutiable. Government is ready to seriously complicate the life of the "informals" from actions which affect not only the country's budget, but also decrease the confidence of consumers, who are increasingly wary of buying low-quality goods.

Honorary Chairman of the Board of IFF-Asia region (China) Deng Xiaolan said thatChinais the world's largest importer of fur raw materials, the main manufacturer of fur garments and its main exporter in the world.Chinaholds 70 percent of world production and export of fur products.

The Chinese government has always attached great importance to product quality and safety by improving the legal system. Some of them are:

 Decision of the Government of China to pursue a policy of openness in matters of administrative violations in the affairs relating to counterfeit goods. February 19, 2014 State Council issued (trial version), "Comments to the law on violations of intellectual property rights, the sale of counterfeit and shoddy goods."

An administrative penalty is the most common measure against violators, has a close connection with the fight against the trade in counterfeit goods.

 Ministry of Commerce, Industry, quality control and other organizations jointly decided to promote and support the fight against counterfeit, fake and shoddy goods. Through strict monitoring and control of manufacturing enterprises and distributors. Strengthen supervision of markets and spot-checking of products, detection of contraband, counterfeit and shoddy goods to trace the stages of the manufacturer, to find the root causes and sales opportunities through the Internet, according to the law to suppress producers and distributors without a license, the so-called "black shops" and "black dens".

 Customs offices and organization of quality control tighten control over the import and export of goods, there is effective control over the import and export of counterfeit / shoddy goods. It is necessary to focus on the fight against smuggling in all sectors, to regulate the export and import; combating coastal smugglers secretly exporting goods, closing illegal trafficking routes; improving the exchange of information between relevant agencies, improvement of customs checkpoints comprehensive mechanism for monitoring the market, creating an equitable orderly situation for the majority of law-abiding businesses.


With the joint efforts of the IFF CEO Mark and the Chinese Association at the beginning of this year has been reduced export tax on fur production. At the same time, thanks to the close cooperation between fur and fashion industry, fur coats are one step closer to the fashion industry, a whole generation of young designers interested in fur is being brought up.

 Chinese Industry Association plays an important role in the control and management of enterprises, conscientious distributors. Regarding enterprises producing low-quality goods, as well as causing damage to the image of the industry, the industry association will use the power of the industry by applying punitive restrictions, without regard to its share in the common interest.

It is necessary to establish and improve the responsibility system in enterprises. Chinese fur industry is a complete production chain. Strengthening corporate responsibility for the quality of the goods is an integral part in all stages, from the farming, processing step to implementation of the finished product. Fur farming is the starting point of this industry. Quality farming and fur processing in China is continuously growing.

During the Forum there was a lively discussion on the agenda.

After the forum, participants organized a trip to the city clothing market, where they were able to witness the presence and amounts of selling of low-quality fur products that come on theterritoryofKazakhstanfromChina. The Chinese delegation was unpleasantly surprised by what they saw - in some pavilions marten fur passed off as sable, rabbit for chinchilla, dyed mink for natural colors. The scale of fraud and poor quality products impressed everyone.