Wood exporters to cope with new import barriers
By Thai Hang - The Saigon Times Daily
HCMC – Wood product exporters will need to comply with the Lacey Act – a new product origin barrier – when sending shipments to the U.S., a forestry expert said.
Heiko Woerner, head of component two of the Vietnam-German Forestry Cooperation Program, told exporters at a Vietnam International Furniture and Home Accessories’ meeting (VIFA 2010) last week that they should prepare themselves. “Without careful preparation, exporters will be faced with many difficulties,” he said.
Under the Lacey Act issued by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service(APHIS), companies exporting products composed from wood or plants, will have to provide specific documentation to prove that the materials were harvested legally. The Lacey Act will require an import declaration containing the plant’s scientific name and quantity, importation value and its country of origin.
Dang Quoc Hung, vice chairman of the Handicraft and Wood Industry Association of HCMC (HAWA), told the Daily that determining wood origin would be difficult and that many of HAWA’s members were unclear about this amended legislation, as the U.S. authorities had not yet announced specific procedures for them to follow.
Hung is a handicraft manufacturer and exporter himself. As his products comprise plant materials, he will have to declare under the Lacey Act too. “There are local manufacturers who use raw woods from different sources. They will have to comply with the new regulations or lose the market,” he said.
According to the American Hardwood Export Commission (AHEC), Vietnam is currently its leading hardwood importer with US$90 million turnover in 2009. Local manufacturers are importing AHEC’s FSC-quality lumber, logs and veneer to produce indoor and outdoor furniture, mainly for export.
Heiko said companies found selling products comprising illegally sourced plants would face strict punishment from the U.S. authorities. “For example, if Vietnamese furniture exported to the U.S. is found using illegal harvested wood from Malaysian forests, relevant people will face goods confiscation and a heavy fine,” he said.
Similarly, the EU Forest Law Enforcement, Governance and Trade (FLEGT) act, which aims to tackle illegal logging and poor forest governance, will take effect in January 2012.
To help local industry follow the EU’s new import regulations, the Ministry of Agricultural and Rural Development and the European Commission (EC) met on March 3 to launch a working group on Forest Law Enforcement, Governance and Trade (FLEGT).
Pham Ngoc Mau, FLEGT’s group coordinator, told the Daily last Saturday that the group’s mission is to train local manufacturers to legally purchase wood and plant products and to create a control system for the materials’ trade. Mau is in HCMC now to strengthen ties with HAWA and other wood industry associations to prepare manufacturers with the necessary information to ensure they abide by the strict import regulations.
According to the Ministry of Agricultural and Rural Development, in January and February this year the country exported wood and wood products totaling US$319 million, primarily to the U.S. and some European countries.