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2013 Pfs European Market For Certified Tropical Timber Products
2013 Pfs European Market For Certified Tropical Timber Products
Product Definition
Certified timber products carry a label which demonstrates that these products originate
from forests that meet a verified standard of sustainable forest management (SFM). Such a
standard will typically consider three issues:
Legality – forest owner/manager holds the legal right to harvest, and timber is
harvested, processed and traded in compliance with relevant international, national and
regional laws;
Environmental sustainability – the forest is managed in a way which preserves the
health of the forest for future generations;
Social sustainability – timber is harvested, processed and traded with respect to the
rights and working conditions of those directly affected.
Product Specifications
This section provides you with basic information about product specifications and import
requirements for certified tropical timber products in the EU.
EU Timber Regulation (EUTR) has prohibited illegally harvested timber and timber products
being traded on the EU market since 3 March 2013 (see more info on EUTR below under
section Legislative import requirements). It covers a wide range of timber products including
solid wood products, flooring, plywood, pulp and paper. Recycled products, as well as printed
papers such as books, magazines and newspapers are not included.
Operators who place timber and timber products on the EU market have to fulfil the following
requirements in relation to the “due diligence system1” (EUTR). The EU importer should
assess the risk of illegal timber in his supply chain, based on the information identified above
and taking into account criteria set out in the regulation. This means that exporters from
developing countries may be asked to give detailed information on the supplied timber:
information describing the timber and timber products,
country of harvest,
species,
quantity,
1
The essence of the 'due diligence' notion is that operators undertake a risk management exercise so as
to minimise the risk of placing illegally harvested timber, or timber products containing illegally harvested
timber, on the EU market.
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CBI Product Factsheet: European market for certified tropical timber products
The section below sets out the legal and the non-legal import requirements of certified
tropical timber. In each section an overview of the various regulations is given (left column),
followed by considerations for action for SME exporters in developing countries (right
column).
Legislative requirements
The EU Action Plan for Forest Law Check the EU FLEGT Action Plan for the
Enforcement Governance and Trade aims to status of the VPA’s with your country. If
support improved governance in wood your country has a signed VPA with the
producing countries. The EU FLEGT Action EU this will facilitate import into the EU.
Plan provides measures to exclude illegal If your country is still in negotiations,
timber from markets, to improve the supply please check, with your representatives
of legal timber and increase the demand for for the VPA process, when they expect
responsible wood products. It provides a signing to take place.
licensing scheme to ensure only legal timber
enters the EU. Six countries have signed a
Voluntary Partnership Agreement (VPA) with
the EU and are developing systems to
control, verify and license legal timber.
Seven more countries are negotiating and
another 12 countries in Africa, Asia and
Central and South America have expressed
an interest in entering into a VPA.
The Convention on
international Trade Make sure that the products you are
in Endangered exporting do not contain any of the
Species (CITES) endangered species listed on the CITES
sets out species, list.
including timber,
which are endangered and to which specific
export and import restrictions apply. Species
on CITES Appendix II list can be exported
with restrictions and include
Afrormosia(Pericopsiselata), Bigleaf
mahogany(Swieteniamacrophylla), ebony
(Diospyros spp.), ramin (Gonystylus spp.)
and rosewood (Dalbergia spp.). The EU
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CBI Product Factsheet: European market for certified tropical timber products
EU CE marking
requires a product to be CE marking is mainly important if you
assessed before being export timber products for the
placed on the market; it construction sector;
must also meet EU EU Importers have the responsibility to
safety, health and verify that exporters outside the EU have
environmental taken the necessary steps and that
protection requirements. Importers must documentation is available upon request;
make sure that products they place on the Please check with your point of contact in
market comply with the applicable the EU on this, especially if you are
requirements and do not present a risk to the exporting doors, window frames, and
European public. Product standards and garage-gates.
performance characteristics have been set for
windows and doors:
(EN 14351-1:2006+A1:2010); this covers
external pedestrian door sets without
resistance to fire and/or smoke leakage
characteristics. EN 13241-1:2003+A1:2011
covers industrial, commercial and garage
doors and gates and products without fire
resistance or smoke control characteristics.
The EU legislation: REACH sets requirements The requirements are part of the REACH
for the use and marketing of timber doors Regulation, but if you want to refer to
treated with harmful substances. (REACH). CBI docs, there are also separate
factsheets on certain wood preservatives
REACH applies particularly to doors
treated with oils, glue varnish and
lacquer containing harmful substances
The EU Product Liability Directive Please be aware that you may be held
85/374/EEC states that the EU importer is liable for defective products and may
liable for products placed on the EU market. have to reimburse costs to consumers
The importer can in principle pass any claim who have purchased your product.
onto the producer.
Non-legislative requirements
Forest sustainability certification is very important in the EU, especially in Northern Europe. It
is a particularly important buyer requirement if you supply to (large) international retailers.
The two main international schemes for timber certification are FSC and PEFC. Both
certification schemes are operational in the EU. Please find below a summary of the most
important environmental and quality certification labels available in the EU.
By 2012 FSC had certified a total of Look for existing experience on PEFC
170.47 million hectares of forest; certification in your country by contacting
a. 97.37 million hectares in Boreal area local BSO’s.
(53.1 %), Companies or individuals interested in
b. 66.22 million hectares in Temperate obtaining FSC CoC certification are
area (36.2 %) welcome to contact National Offices in
c. 19.48 million hectares in Europe, the Regional European Office in
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CBI Product Factsheet: European market for certified tropical timber products
At the moment PEFC comprises several Check whether your country has a PEFC
national certification schemes, including National Governing Body on PEFC.
the American Tree Farm System (ATFS), Check your PEFC office for costs of
the Canadian Standards Association certification.
(CSA), the Sustainable Forestry Initiative Look for existing experience on PEFC
(SFI) and the Malaysian Timber certification in your country by contacting
Certification Council (MTCC); local BSO’s.
In 2012 237.65 million hectares of forest
were certified by PEFC; 145.00 million
hectares in Boreal area (61.0 %), 86.77
million hectares in Temperate area
(36.5 %) and 5.87 million hectares in
Tropical/Subtropical area (2.5 %).
Administration of the PEFC scheme is
carried out by the PEFC National
Governing Bodies (where they exist) or
directly by the PEFC Council or other,
authorised bodies in countries without
PEFC National Governing Bodies.
Certification costs vary from one country
to another, from one certification body
to another and from one forest
management unit to another.
The ISO 14001 Environmental Management Find out more about ISO certification and
Systems is an international certification the advantages for you on the ISO 14001
scheme addressing aspects of environmental website.
management and providing practical tools for
identifying and managing environmental
impact and continuously improving
environmental performance.
The ISO 9001:2008 Quality Management Find out more about ISO certification and
Systems is a certification scheme providing the advantages for you on the ISO 14001
guidance and tools to ensure products and website.
services consistently meet company and
customer requirements and that quality is
consistently maintained and improved.
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CBI Product Factsheet: European market for certified tropical timber products
In 2012 the world’s certified forest area was almost 400 M ha which is 9.6% of the world’s
forested area. Some 63% (or 250 M ha) of the certified forest area is certified by the
Programme for the Endorsement of Forest Certification (PEFC) (including associated national
systems); the remaining 37% (some 150 M ha) is certified by the Forest Stewardship Council
(FSC) (UNECE/FAO, 2012). The majority of PEFC certified forest is located in North America
and Europe (mainly Finland, Norway and Sweden). Most of the FSC certified forest is located
in North America, the CIS sub-region (former Soviet Republics), and Europe, and most of the
tropical countries.
The end consumers of these two major certification schemes are mainly found in the EU and
North American markets. The proportion of global round-wood supply from certified forests
was 468 M m3 in 2012 which is about 26% of the total round-wood supply. North America
and Europe are the largest sub-regions providing certified round-wood which covers 95.8%
of the certified round-wood supply.
General information about tropical timber trade figures in the EU is provided in CBI
Tradewatch on (non-certified) Tropical Timber. The section below provides you with statistics
on the trade and consumption of certified tropical timber in the EU as far as they exist.
Imports
Figure 1: Top-10 EU and EFTA importers of Figure 2: European import (selected
tropical timber, 2012, in thousand countries) of tropical timber and
euros timber products (roundwood, sawn
wood, veneer and plywood), 2007-
2012, in m3
Source: EU Eurostat database. Figure composed by Source: ITTO database. Figure composed by LEI
LEI Wageningen UR. Wageningen UR.
Figure 3: Total volume of certified tropical Figure 4: Certified Forest Area for various
sawn wood sold on the Dutch parts of the world in 2010, 2011,
market in 2005, 2008 and 2011 (in and 2012.
m3 rwe)
Source: Probos 2013.Figure composed by LEI Source: UNECE/FAO 2012.Figure composed by LEI
Wageningen UR. Wageningen UR.
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CBI Product Factsheet: European market for certified tropical timber products
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CBI Product Factsheet: European market for certified tropical timber products
Exports
Figure 5: Export of tropical timber from top 10 Figure 6: Re-export of tropical timber of the 10
exporting developing countries, 2012, major exporting EU countries in 2012,
in million euro in million euro.
Source: ITTO database. Figure composed by LEI Source: ITTO database. Figure composed by LEI
Wageningen UR. Wageningen UR.
2
Trade figures should be interpreted with caution. For intra EU trade, figures are only compulsory for
exporting and importing firms whose trade exceeds a certain value. The threshold varies from country to
country, and is typically about €100,000. Intra EU trade is often underestimated by 3-6%. Trade figures
do not make a distinction between certified and non-certified timber.
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CBI Product Factsheet: European market for certified tropical timber products
Production
Figure 7: Production of (imported) tropical Figure 8: Total production of tropical timber
timber in top 5 EU countries and timber products in the EU
between 2007 and 2012 (in 1,000 between 2007 and 2012 (in 1,000
m3). m3).
Source: ITTO database. Figure composed by LEI Source: ITTO database. Figure composed by LEI
Wageningen UR. Wageningen UR.
Consumption
Figure 9: Consumption of tropical timber in the EU, 2007-2012, in m3 x 1,000.
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CBI Product Factsheet: European market for certified tropical timber products
CBI Tropical Timber Trendmapping 2013 provides you with general trends in the European
market for sustainable tropical timber and timber products. The section below gives a short
summary and some of the latest developments regarding market trends for certified tropical
timber and products in the EU market.
Analysis and interpretation Considerations for action
Social:
Europeans want to know where their Visit the FSC website and contact NGO’s
tropical timber comes from and how it is such as the WWF to check how you can
produced. As a supplier you need to promote the transparency and
invest in transparency and sustainability sustainability of your firm.
in order to increase your potential in the Try to arrange a meeting with your most
EU. important buyers and NGO’s.
The area of FSC certified forest in South Despite these challenges there remains
Asia is still growing. However, in some large potential for forest concession
parts of Latin America (e.g. Boliva) and holders and timber exporters in tropical
Central Africa the area of certified forest regions to enter the certified market.
is decreasing for various reasons,
including issues with ownership of
concessions, problems with market
access, and problems related to
developing but still weak institutional
settings.
Technological:
Techniques in the production of various Make a plan with your buyer to find niche
wood-composites are developing rapidly. markets in which to sell your products in
Between 10 and 15% of the total the EU.
European composite market is covered Discuss specifications with your buyers.
by Wood - Plastic Composites (WPC) and Providing timber products with preferred
Natural Fibre Composites (NFC). The specifications can help strengthen your
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CBI Product Factsheet: European market for certified tropical timber products
Economic:
Some encouraging reports have also Try to find new consumer markets in the
emerged of improving market conditions EU to increase your export of niche
in Europe from the third quarter of 2013 products.
onwards. The economic situation in The GDP in Eastern Europe is growing
Europe seems to have stabilised for the fast. This could be an interesting new
time being as the worst fears of currency market for tropical timber products.
collapse in the euro-zone have waned Prices for certified timber in the EU are
(ITTO 2014) generally higher than in many other parts
The European construction sector also of the world.
appears to have hit its lowest point in Price premiums for FSC wood, particularly
2013 and is predicted to start growing from the tropics, range from 15 to 25%.
again, although this recovery may be
slow and is also still quite uncertain
(ITTO 2014).
On 1 January 2012 the population of the
EU-27 was estimated at 504 million
people; this was 1.3 million people more
than the year before (Eurostat 2013).
The number of inhabitants in the EU-27
grew from 402.6 million in 1960, rising
by more than 100 million persons
through to 2012. This population growth
together with a strong global GDP
growth (almost 100% in the last 10
years), creates an increased demand for
high quality timber and timber products.
The costs of forest management
certification (cost of assessment) may
vary from $2 to $60 per hectare with an
average of $22/ha (UNECE/FAO 2012).
The actual costs may be higher because
of multiple five-year re-assessments, as
well as costs associated with annual
audits and an increase in operating
expenses. Annual audit costs may vary
between $0.10 per hectare for large
parcels to $40 per hectare for smaller
areas.
South American certified timber costs
more than certified timber from other
regions (e.g. up to 20% higher). This is
caused by several factors, including
higher costs in South America for labour,
raw materials and shipping. In addition,
producers (e.g. in Brazil) realise they
can get away with asking higher prices
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CBI Product Factsheet: European market for certified tropical timber products
Environmental:
As mentioned above, sustainability is There is potential for the expansion of
becoming more important in the EU. certification, as only a small proportion of
Retailers in the Northern part of Europe tropical timber products are currently
in particular are demanding sustainable certified. Fast responders will achieve a
timber. competitive advantage over non-certified
As of May 2012 the worldwide total suppliers of tropical timber products.
number of Chain of Custody (CoC)
certificates (FSC, PEFC) issued was
31,924 (UNECE/FAO 2012). Most CoC
certificates were issues in the US
(4,040), followed by the UK (3,465),
Germany (3,059), France (2,758), and
Italy (1,778). The number of CoC
certificates in tropical countries is still
low. Brazil is leading the field with about
900 certificates issued by 2012. Most of
these were issued by FSC.
Political:
FSC recently added a legality clause (as There are growing opportunities for
a result of the EUTR), in an effort to certified tropical timber products in the
avoid potential double-work in terms of EU. Familiarise yourself with the EUTR
demonstrating legality AND sustainability and find out how to comply at FSC.
through two different systems.
This section focuses on the most important developments that are reshaping the value chain
for tropical timber products and their trade routes in the EU, and the consequences of this for
exporters. For more general information about market segments and channels on tropical
timber you can have a look at the
Market Channel and Segment document available on the CBI market intelligence platform.
Table 1: Major “Do it Yourself” (DIY) stores in EU which are important sellers of tropical
timber products
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CBI Product Factsheet: European market for certified tropical timber products
More information
CBI (2013a). CBI trendmapping sustainable tropical timber and timber products.
CBI (2013). CBI Scenario planning. Impact of the European Timber regulation for SME timber exporters in
developing countries.
CBI (2011). Promising EU markets for FSC-certified tropical sawn wood.
UNECE and FAO (2012). Forest Products Annual Market Review, 2011-2012.
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