Policy - EFUR

Efur Policy Summary

2024-2025

Step 1

Sending Frozen Unscraped Skins to Cambodia

The pelting services in Cambodia encompass “fat scrapping”, “stretching”, “drying”, and “sizing after drying”. Animals must be skinned prior to shipping as whole carcasses are not permitted to be transported, but fat on the leather side is allowed.
Frozen skins of the same color and fur quality (F/M) should be neatly laid flat in plastic bags. Female and male skins should be packed in plastic bags of distinct colors and then bundled together in sturdy cartons/trucks. These should be placed on wooden pallets and wrapped with plastic foil to avert damage and loss during transit. The carton/truck numbers should be clearly marked on the exterior in line with the packing list.
Farms need not prepare barcodes when packaging skins. Nevertheless, they can affix differentiable plastic pins on each skin's nose. Efur can offer indicative suggestions on the color combinations of these pins prior to packing.
Different types of skins (regular, breeders, summer skins) should be separately packed and recorded in separate proforma invoices and packing lists.
A packing list detailing the type (Regular, Breeders, Summer), color, F/M, and quantity in each carton/truck should be provided prior to dispatch.
For import clearance in Cambodia, Efur only requires the proforma invoice, packing list, and transportation waybill. However, for export clearance from the EU or other countries to Cambodia, the documentation requirements may vary. Kindly seek further clarification from Efur local transportation agents.
The Incoterm from the farm is FCA. Farmers must complete the export clearance under the guidance of the forwarder. Efur will arrange for forwarder pickup and cover the transportation cost in advance.
There is no definite deadline for sending skins to Efur annually. However, if a farm intends to sell skins in China within the same year's sales season window (typically closed before mid-January), the skins should reach Cambodia by September 10 at the latest. Otherwise, the farm will have to wait until May of the next year for the new sales season.

Step 2

Drying Cost for Frozen Unscraped Skins in Cambodia

Efur will procure the drying service from Norpol Pelting Cambodia. Currently, the drying cost is 1.6 euros per skin and will be deducted from the sales proceeds.

Step 3

Sending Dried Skins

Efur can also receive dried skins in Cambodia. It will conduct tanning in Cambodia first and then ship them to China for sale. The tanning service is provided by Marco-Cipel in Cambodia.
For dried skins, different types (Regular, Breeders, Low grade, Summer Skins) should be packed separately and recorded in different proforma invoices and packing lists. For low-grade skins, farms only need to provide a basic understanding of the shipment before dispatch. They can simply sum up the total number of damaged skins (Dam2 or more damaged) and indicate the number in the packing list without specifying the damage level.

Step 4

Sorting Suggestions and Authorization from Farms

Efur can either perform inter-sorting or create farm lots depending on the farm's request. Constructing farm lots generally requires a certain quantity and consistency of specified skin categories. For Brown/Mahagany/Black skins, a minimum of 2000 pieces per category (type + F/M + color) is required for each shipment to Cambodia. For mutations, a minimum of 5000 pieces per category (type + F/M + color) is necessary.
Efur will conduct dry skin sorting and send an indicative sorting report to farmers for authorization before dressing the skins. If a farm does not accept the description in the report, Efur will update it as per the farm's instructions. Dry skins will not be tanned without sorting report authorization or updates from farms.
For skins sent in extremely limited quantities that are insufficient to form a proper farm lot, Efur will combine these small amounts with other farms' skins and conduct cross-sorting. For cross-sorting, farms will only be notified rather than asked for confirmation.

Step 5

Price Suggestion and Authorization, and Costs Structure for Farms

Efur will periodically send dry skin reference prices using the latest auction prices as benchmarks. Before each Efur auction, farms can adjust prices online based on these reference prices as the minimum prices to be received or suspend sales if they wish to wait for a more opportune moment.
Any outstanding drying costs will be collected after sales.
Efur will charge 1.4 euro per skin as the commission from the farm side and deduct it after sales.

Step 6

Auction in China

Efur will provide both online auctions and private sales for farms. Auctions will not be fixed on a specific schedule. Since the skins have been shipped to China, Efur can organize auctions monthly or more frequently depending on the market situation from April to December each year.
Efur will offer skins to buyers with a starting price of “minimum prices authorized by farm” plus “added up costs” after the minimum price authorized. These “added up costs” include VAT, tannery cost, and all transportation costs from farms to China. Buyers will pay those costs in total when bidding on skin prices during the auction.
After deducting the above costs, any excess sales prices will be credited to the farm from the auction.
If bidding prices are lower than the starting auction prices, the skins will not be sold without further authorization from farms.

Step 7

Stocking Skins and Sale Time Framework

Unsold skins will be stored in Efur's warehouse free of charge for one year from the first price suggestion given to the farm.
Efur and farms need to determine reasonable market prices from time to time. Skins should be sold within nine months starting from the first price suggestion given to the farms. If skins cannot be sold within nine months, farms must pay transportation, drying, and dressing costs first. Efur will refund these costs if the skins are sold later.
Efur is not responsible for damage if skins are too old to be stored after two years.

Step 8

Efur Consignor Online Account

Each farm will have an online account after Efur receives the packing list and the signed consignment contract.
Farms can access detailed reports on logistics status, sorting reports, sold results, inventory, payment settlement, pricing authorization records, loans, etc., in their farm accounts.
Efur will send sorting suggestions for each farm's each shipment. Farms can authorize or update sorting reports through their farm accounts.
Efur will suggest sale prices for each farm. Farms can authorize or update minimum prices to be received through their farm accounts.

Step 9

Loan

fur can facilitate a loan of up to 50% of the skin valuation. The valuation will be conducted in Cambodia.
The loan maturity period is nine months starting from the principal being paid to the borrower.
The availability of loans and terms are at the lender's discretion. Any borrowing cases are based solely on the lender's judgment. Currently 8%/year, 9 months term, CNY loan (can be exchanged to Euro when paid to the borrowers)

Step 10

Terms Summary

Pelting& Drying Cost	● 1.6 Euro (After taking out the whole carcasses) ● Efur will cover the cost in advance, and collect the cost from the sale proceeds later
Trade Terms	● FCA,
Deadline of sending skins	To be received before 10th Sep in Cambodia as the latest date if planned to be sold within the same year
Sorting	● Inter-sorting or create farm lots depending on the farm's request and the quantity received ● sorting result authorization mechanism available for farm lot
Price Suggestion& Authorization	● Farm will authorize prices as the minimum prices to be received for the farm lot before auctions. ● Efur will provide the price suggestions to farms by using the SAGA price as the benchmark prices, farm can make decision upon that
Efur Commission	1.4 Euro per skin
Warehousing	Free of charge for one year starting from the first price suggestion given to the farm.
Dressing Cost & Transportation Fee Payable	● Buyers will bear all the costs if the skins are sold within nine months from the date when the first price suggestion is given to the farms. ● If the skins are not sold within nine months, the farms are required to pay for the transportation, drying, and dressing costs first. Efur will reimburse these costs if the skins are sold later
Loan	50 % of the valuation, Interest rate 8% per year