GOVERNMENTS/ASSOCIATIONS/FASTENER GROUPS
TFTA Holds Seminar on Impact of Russia-Ukraine War
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2022-03-16
Members call for the government to help resolve shipment and finance obstacles
The Russia-Ukraine War shakes the world with the U.S., Europe and Japan sanctioning Russian state-run banks and restricting Russian payment flow. Taiwan exported USD 5.32 billion worth of fasteners to the world in 2021. The export to Russia was USD 38.24 million (taking up 0.72%), and the export to Ukraine was USD 4.065 million (0.07%). Although Russia and Ukraine totaled 0.79% in shares, the sanction ramping up thus far has first impacted Taiwanese fastener companies trading with the two nations.
Taiwan sells fasteners to the whole world. The impact from the Russia-Ukraine War is global and all-inclusive, so the future is filled with an unknown ripple effect. In light of the impact, Taiwan Fastener Trading Association (TFTA) held a seminar on the impact of Russia-Ukraine War on March 16, inviting specialist Ms. Wu from Small and Medium Enterprise Administration and Grace Chou from TAITRA Tainan Office to discuss with TFTA members their top obstacles in “shipment”, “payment collection” and “financing”.
TFTA chairman Josh Chen said he received reports from many members lately who claimed they were not able to collect the money, ship out the products, or that the cargo can’t reach the destination. He said they were left with China as the only viable route to ship products, and therefore he is very concerned with the serious impact from the Russia-Ukraine War. TFTA Vice chairman Mr. Chen Chi-Hung suggested that TAITRA should sync up information with its local offices in Russia and Ukraine to provide fastener companies with case-by-case consultation.
(Left to right) Former chairman Jimmy Chang, incumbent chairman Josh Chen, and incumbent vice chairman Chen Chi-Hung.
Former chairman Jimmy Chang said he observed that container companies are no longer handling ships headed for Russia and Ukraine. He suggested to ship products into Russia through Dalian City of China or Lithuania. Additionally, he said he has a Russian client who made payments via China’s “Cross-border RMB Payment System”
Former chairman David Horng said the government’s solutions are often far from reflecting the reality. He said the government should reflect the obstacles faced by the companies and lower the bars. Furthermore, to cope with unexpected risks from the war, the government's solutions should include “risk funds” covered by the government.
Former chairman David Horng
Former chairman Bill Chen shared his trade experience to remind that Russia and Ukraine are free from AD taxes because they are not in the EU but China’s products in the EU region are cheaper and more competitive than Taiwan’s. It is difficult to collect deposits and Taiwanese companies have to set the payment deadline to at least 90 days later to be able to strike a business deal and compete with China. Moreover, there is an obstacle in shipment as well. Odessa and Saint Petersburg ports are sealed off due to the war. Trying to go through Vladivostok port will probably be met with congestion.
Regarding the obstacle in payment collection, he suggested to ask Russian clients if they could pay in RMB. On market, he suggested to tap into Poland’s furniture market and the Turkish market to cope with the war.
Former chairman Bill Chen
Unistrong Industrial president Mr. Chen Chun-Ding pointed out that the top obstacle for the companies now is that their cargoes are stuck and they can’t ship out products. He suggested that the government should first think about how to help them ship out the products. In addition, we should look further to after the war. President Chen is optimistic about the post-war re-construction market and the business opportunities with the Polish market.
Unistrong Industrial president Mr. Chen Chun-Ding
Managing director Jannus Lin of the Taiwan branch of Bufab said she has many Russian clients. She called for the government which joins the sanction on Russia out of justice to not forget that the fastener companies are the ones bearing the brunt of obstacles and not forget how they feel.
Managing director Jannus Lin of the Taiwan branch of Bufab
General manager Andes Wang and Ms. Vicky Lee from Advanced Global Sourcing said in the meeting that they also met obstacles in collecting payments. They suggested that the government and companies should be farsighted and keep a close watch on if the war will affect the fluctuations of Euro.
General manager Andes Wang of Advanced Global Sourcing
Grace Chou of TAITRA responded that TAITRA forecast that Euro is supposed to keep depreciating and that TAITRA will continue to observe and study recent Euro fluctuations. TAITRA Specialist Ms. Wu said she had invited TAITRA, The Export-Import Bank of the ROC, and the authorities for credit guarantee fund to convene on March 1 for a solution. Currently they have come up with a “Speedy Service Center” mainly providing SMEs with consultation on finance and payment.
Grace Chou of TAITRA
Specialist Ms. Wu of Small and Medium Enterprise Administration
Furthermore, Wu added that if companies need help with working funds and purchase orders, they can use the credit guarantee fund and collaborate with banks. The funds provides a quota of NTD 150 million. If a company’s revenue drops by over 15%, it can skip being taken the guarantee fee. In regard with obstacles the companies met with in shipment, the Maritime Port Bureau arranged a discussion about shipment issues during the war on March 18. From the current situation (up to the date of the seminar), Russia has yet to put a sanction on any Taiwanese fastener products.
Besides the credit guarantee fund, MOEA is planning another solution with a lower threshold specifically for shipments to Russia and Ukraine which is scheduled to come out in April. The latest update will be notified to TFTA and its members.
General manager Mr. Kern Hsiung Huang of Feng Yi Titanium Fasteners
Mr. Zhang Xiang-Lun of Vertex Precision Industrial
台灣螺絲貿易協會
俄烏戰爭
座談會
TFTA
Russia-Ukraine War
symposium
扣件
國際展會
惠達雜誌
匯達實業
外銷媒合
廣告刊登
螺絲五金
五金工具
紧固件
台灣扣件展
印度新德里螺絲展
越南河內螺絲展
墨西哥瓜達拉哈拉螺絲展
美國拉斯維加斯螺絲暨機械設備展
波蘭克拉科夫螺絲展
義大利米蘭螺絲展
德國司徒加特螺絲展
wire Dusseldorf
FASTENER FAIR INDIA
FASTENER FAIR VIETNAM
FASTENER FAIR MEXICO
FASTENER POLAND
FASTENER FAIR ITALY
FASTENER FAIR GLOBAL
FASTENER WORLD
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