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LUMBER MARKET UPDATE
May 3, 2002
Export Wood Packaging Update
Canadian Tariff

Export Wood Packaging Update - FAQs

 
  1. When will it become effective?
  2. Do providers have a license or a stamp?
  3. Will there be new requirements for proving that the material was fumigated?
  4. Which countries are likely to ask for bark-free or debarked material?
  5. Does this rule apply to all species of wood?
  6. What about using peeler cores?
  7. At the time of affectivity, what about wood materials that are already in route? (will there be a "grace period"?)
  8. Is there a plan for a revision of the standard after implementation issues are fully surfaced?
  9. Exactly how do users get a copy of the specifications for Heat Treatment?
  10. If I comply fully with the IPPC standard as it reads now, will the countries that currently have regulations in place accept those shipments? (rationale, the IPPC standard is more encompassing than many regulations).
  11. Can I apply the markings as shown even if there is no grading agency oversight process established within my country right now?
  12. When will the wooden pallet industry truly be ready to heat treat softwoods and hardwoods per this standard?
  13. What is the estimated cost increase for heat treated materials compared with untreated?
  14. Can we still use untreated materials on shipments between NAFTA countries (Canada, US, Mexico)?
  15. When will countries that currently require government insured paper certifications for heat treatment/fumigation switch to the paperless marking protocol? (priority on China)
  16. What will be the requirements for shipments to/from countries that are NOT part of the IPPC?
  17. What is being done to review and approve other treatment methods such as irradiation?
  18. After the IPPC standard becomes effective, will I still be able to ship materials that were treated and marked per EU regulations or other country regs? (example: pallets marked "China Treated" that were fumigated before).
  19. Even though the IPPC standard defines a paperless protocol for compliance, are there any suggested statements that we should put on shipping documentation to assist inspectors? Example:  "All packaging within this shipment complies with IPPC standards "(along with bug symbol".
  20. How stable is this standard? What is the timetable for potential changes to it?
  21. Will lumber shipments being shipped as a commodity in itself be affected?
  22. Are there any requirements for dunnage?
  23. Who should I contact for additional information?

1.  When will it become effective?

The standard is now in place (approved March 15, 2002) but it does not become effective until the receiving countries enact the appropriate regulations.

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2.  Do providers have a license or a stamp?

HT "providers" must be registered with the ALSC enforcement agencies.  APHIS is still determining how to provide oversight over the fumigation program.

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3.  Will there be new requirements for proving that the material was fumigated?

There will be a program to monitor activities of fumigators providing services under the program.

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4.  Which countries are likely to ask for bark-free or debarked material?

We are guessing here, but the European Union countries are the ones who supported the "debarking" requirements in the IPPC meeting.  It is unclear if they would adopt the debarking provision for all countries rather than on a "technical justification" basis for particular countries.

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5.  Does this rule apply to all species of wood?

It is not a rule; it is a standard.  But yes, it does apply to all species of wood.

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6.  What about using peeler cores?

Peeler cores are specifically exempted from other treatments but wood packing material manufactured from peeler cores would need to be marked under the program.

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7.  At the time of affectivity, what about wood materials that are already enroute? (Will there be a "grace period"?)

The standard does not address this but our expectation is that there would be a phased in implementation period for each country.

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8.  Is there a plan for a revision of the standard after implementation issues are fully surfaced?

No plan of revision as such, but standards are reviewed every three years.

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9.  Exactly how do users get a copy of the specifications for Heat Treatment?

There is no specification (other than the standard) at present but the ALSC enforcement rules can be downloaded from the APHIS web site, the ALSC web site or the Conner website.

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10.  If I comply fully with the IPPC standard as it reads now, will the countries that currently have regulations in place accept those shipments?

Not until they adopt regulations that are consistent with the IPPC standard.  For instance, countries with "higher standards (e.g., Australia) would keep their current requirements until the IPPC standard is adopted in Australia.  But since the IPPC standard is more stringent than the EU standard (that is, it covers all wood types, not just coniferous) appropriately treated and marked wood would be acceptable for the EU.

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11.  Can I apply the markings as shown even if there is no grading agency oversight process established within my country right now?

No, since the National Plant Protection Organization (NPPO), of the exporting country (in this case APHIS), is responsible for oversight of the program, the use of marks must be coordinated with the NPPO.  Companies that use the marks improperly will be investigated and possibly fined.

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12.  When will the wooden pallet industry truly be ready to heat treat softwoods and hardwoods per this standard?

The softwood industry is already complying substantially with the measures since the EU program has now been in effect for 6 months.  The hardwood industry will be "truly" ready and the National Hardwood Lumber Association (NHLA) is a member of the ALSC heat treatment program.

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13.  What is the estimated cost increase for heat treated materials compared with untreated?

This is not a quarantine issue.  Please consult the National Wood pallet and Container Association (NWPCA).

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14.  Can we still use untreated materials on shipments between NAFTA countries (Canada, US, Mexico)?

Canada, the US and Mexico still need to harmonize their entry requirements and this issue is still far from settled.  But even if untreated materials are allowed for within - NAPPO movements, it is the market for wood packing that will control the issue.  APHIS expects that shipments between the US, Canada and Mexico will have to meet the conditions of the international standard since many of the products are shipped on to third countries.

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15.  When will countries that currently require government insured paper certifications for heat treatment/fumigation switch to the paperless marking protocol? (priority on China)

APHIS is discussing harmonization of wood packing requirements with China in an upcoming bilateral meeting (scheduled for May, 2002).

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16.  What will be the requirements for shipments to/from countries that are NOT part of the IPPC?

They will have to meet the requirements of the importing country.

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17.  What is being done to review and approve other treatment methods such as irradiation?

APHIS is not involved in the development of new technology for wood treatment.  However, the IPPC technical panel will meet periodically to review new treatments.

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18.   After the IPPC standard becomes effective, will I still be able to ship materials that were treated and marked per EU regulations or other country regs? (example: pallets marked "China Treated" that were fumigated before).

The presumption is that the packing materials will have to be marked in accordance with the international standard.

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19.  Even though the IPPC standard defines a paperless protocol for compliance, are there any suggested statements that we should put on shipping documentation to assist inspectors? Example:  "All packaging within this shipment complies with IPPC standards "(along with bug symbol)".

APHIS makes no such recommendation at this time.  Any such statements will be at the request of importing countries.

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20.  How stable is this standard? What is the timetable for potential changes to it?

The standard will change from time to time.  There is a 3-year cycle for review of existing standards and the necessary adjustments will be made where needed.

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21.  Will lumber shipments being shipped as a commodity in itself be affected?

The IPPC standard only applies to the export of non-manufactured wood packaging material used in the transport of commodities.

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22.  Are there any requirements for dunnage?

Dunnage should be marked and treated under one of the approved measures of heat treatment or fumigation.  If not treated under one of these measures, at a minimum, wood will be required to be made from bark free wood and free of pests and signs of live pests.  Dunnage includes blocking and bracing used to secure or support the commodity.

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23. Who should I contact for additional information?

  • Conner Industries, Inc., (800)543-4893. Click here to see a list of our sales representatives any of which can help you with any other questions that you may have about this matter.  If you are not familiar with any of our sales representatives, contact us by emailing sales@connerindustries.com.   One of our sales representatives will contact you as soon as possible.

  • If you have complaints or concerns about the Export issue, please contact the following individuals:

          Tom Searles - ALS - (800)260-9173
          Ronnie Williams & Jay Moore - TPI - (770)922-8000
          Tom Jones & Jim Loy - SPIB -(850)434-2611
          Your Congressman and Senator
USDA/APHIS/Export Services (301)734-4382
          Easter Region (970)494-2528
Western Region (970)494-2527
           USDA/FAS/Forest and Fisheries Products Division (202)720-0638
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ITC Finds Threat of Injury, Lumber Duty Confirmed
as of May 2, 2002
 

The U. S. International Trade Commission voted 4-0 today that lumber imports from Canada threatened material injury to the U.S. industry.  As a result, a 27.2% combined countervailing and anti-dumping duty on Canadian shipments to the U.S. will go into effect later this month.  However, bonds previously posted to cover preliminary duties, which total more than $1 billion, will be forgiven. 

 The 27.2% duty is the highest ever levied in the lengthy lumber trade dispute between the U.S. and Canada.  The ITC is required to forward its report to the Department of Commerce by May 16.  The commission typically takes all the time allowed under the statute, but is being lobbied to expedite the process by the Coalition for Fair Lumber Imports.  Once Commerce receives the ITC report, it will issue a duty order.  Once the order is published in the Federal Register, which usually occurs in 3-7 days, the duties will be in effect.  Assuming the ITC takes all the time allowed, Commerce estimates that will occur on or about May 23rd.

Canadian shippers will no longer be able to post bonds to cover the duties, but will be required to pay cash deposits on lumber shipments to the U.S.

Canada has already filed appeals to the duty with the World Trade Organization and NAFTA, but final rulings on those appeals are not expected until at least early 2003. (Article provided by Random Lengths Special Report)

Product Description:  The product subject to these investigations is softwood lumber, flooring, and siding (softwood lumber products).  Softwood lumber products comprise all products classified under subheadings 4407.10.00, 4409.10.10, 4409.10.20, and 4409.10.90 of the Harmonized Tariff Schedules of the United States.

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Conner Industries: Industrial Lumber and Crating Lumber Provider for panel products, softwood and hardwood industrial wood users.

 

Conner Industries, Inc.
3800 Sandshell Drive,  Suite 235, Fort Worth, TX USA 76137
(817) 847-0361 (800) 543-4893 (817) 232-9264 FAX
Email us at info@connerindustries.com
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Last revised: May 01, 2006