It is estimated that by 2020, China’s wood demand will reach 800 million cubic meters, and China’s domestic wood gap will reach 200 million cubic meters. Russia, Europe and Africa have become major import destinations!
The guide of How to Export Timber From Latvia to China.
According to data from previous forest resource inventories in China, the overall forest area in China has continued to increase. At the first inventory, China’s forest area was 122 million cubic meters. By the eighth inventory, the forest area had increased to 208 million hectares, a net increase of 12.23 million hectares from the previous inventory, ranking fifth in the world.
The forest coverage rate also increased significantly. The forest coverage rate for the first inventory was only 12.7%. By the eighth inventory, the forest coverage rate had reached 21.63%, an increase of 1.27 percentage points from the previous inventory. Forest stock also increased from 8.656 billion cubic meters in the first inventory to 15.137 billion cubic meters in the eighth inventory, a net increase of 1.416 billion cubic meters from the previous year, ranking sixth in the world. Among them, the increase in natural forest volume accounted for 63%, and the increase in planted forest volume accounted for 37%.
The results of the inventory show that China’s forest resources are showing a steady increase in quantity, a steady improvement in quality, and a continuous improvement in efficiency.
Despite this, China is still a country lacking forests, greenery and fragile ecology, with forest coverage far below the global average of 31%. The per capita forest area is only 1/4 of the world’s per capita level, and the per capita forest accumulation is only 1/7 of the world’s per capita level. The situation of relatively insufficient total forest resources, low quality, and uneven distribution has not been fundamentally changed. Facing enormous pressure and challenges.
Supply status and development trend of Chinese timber market
China is the world’s largest wood processing and wood products production base and the leading exporter of wood products, as well as one of the largest international buyers of wood, and China’s annual wood production volume is among the highest in the world. Especially with the continuous development of China’s economy, the acceleration of urbanization and the increasing consumption capacity of residents, the demand for wood in all industries is increasing.
According to the data in the “2018-2023 Analysis Report on Demand and Investment Forecast for China’s Wood Processing Industry” by the Foresight Industrial Research Institute, China’s wood production has been on the rise since 2006, reaching a record high of 84.385 million cubic meters by 2013.
The period 2006-2013 saw year-on-year growth in all but 2009, and it was not until 2014 that the downward trend was observed. Mainly, in order to protect the ecological environment, many areas in China have lowered their logging targets, while replacing wood with other new green materials. By 2016, China’s timber production had fallen to 77.759 million square meters. Against the backdrop of declining timber production, in order to meet the requirements of China’s domestic economic development and improving people’s living standards, China’s annual timber demand is mainly dependent on imports. In order to encourage timber imports, since 1998, China has not only imposed zero tariffs on all types of imported timber, but also relaxed the restrictions on enterprises operating with imported timber from those that previously had the right to import timber to those that have the right to import and export. This has led to a significant increase in China’s timber imports, and in 2017, China’s total timber imports (logs + sawn timber, log stock) exceeded 100 million cubic meters for the first time, reaching 108.497 million cubic meters, an amount of $19.986 billion, up 15.6% and 23.2% respectively.
According to the analysis of the above data, based on the protection of forests in China, although the demand for timber has increased, China encourages timber imports, so China’s timber production will continue to decline in the future, China’s domestic timber production is expected to decline to 58,598,000 square meters by 2023.
Chinese timber is mainly consumed in the paper making, artificial board, solid wood flooring, solid wood furniture and other industries.
In 2016, China’s industrial timber consumption was about 609.41 million cubic meters, of which industrial timber consumption totaled 601.41 million cubic meters, accounting for about 98.69 percent of China’s timber consumption; other timber consumption, such as infrastructure, renovation and farmers’ housing construction, was about 8 million cubic meters, accounting for about 1.31 percent of China’s timber consumption. Of the industrial timber consumption, in 2016, about 394.21 million cubic metres of timber was consumed by paper, accounting for 65.55 per cent of industrial timber consumption; other wood processing industries, such as wood paneling, solid wood flooring and wood furniture manufacturing, consumed 207.2 million cubic metres of timber, accounting for about 34.45 per cent.
China imported 65.98 million cubic meters of timber in January-July 2018, an increase of 7.5 percent over the same period in 2017; the amount was $12.85 billion, a large amount of the amount of the plus ratio, an increase of 16.5 percent, showing the increase in foreign timber sales prices.
A total ban on natural forest logging in China is one of the reasons for the increased demand for imported timber in the country’s domestic market, with the country’s domestic commodity timber production decreasing by about 40 million cubic meters per year after the country completely halted commercial logging of natural forests in 2017. In order to meet its needs, China imports large quantities of timber to make up for the shortfall in raw material supply, and its external dependence on timber currently stands at 50 per cent.
China is expected to import more than 110 million cubic meters of timber for the whole year, and the amount will exceed $25 billion.
As the world’s second largest timber consumer and first largest timber importer, China’s total timber consumption has increased by 173 per cent in the past 10 years, and the country’s timber consumption will now exceed 600 million cubic metres, with an external dependence of over 50 per cent. With the rapid development of various industries, the market demand for timber will continue to grow. According to projections, China’s timber demand could reach 800 million cubic metres by 2020, leaving a shortfall of about 200 million cubic metres.
Head of Latvian Chamber of Commerce and Industry: Europe wants to develop export cooperation for the Chinese timber market work
As the world’s second largest timber consumer and first largest timber importer, China’s total timber consumption has increased by 173 per cent over the past 10 years, and the country now consumes more than 600 million cubic metres of timber annually, with a dependence on foreign markets of more than 55 per cent. By 2020, our demand for wood will exceed 800 million cubic metres.
In recent years, China has actively implemented a series of measures in the field of natural environmental protection. In 2017, China enacted a policy banning commercial deforestation of natural forests. At the same time, domestic timber production has been affected by natural resource constraints and rising logging costs in China.
The decline in domestic timber production has pushed up China’s imports into the timber sector. China’s reliance on timber imports rose from 48.4 percent in 2013 to 57.4 percent in 2018 and is expected to continue to grow in the coming years, the data showed.
On July 18, representatives from Chinese and European manufacturers visited the Shanghai Wood Culture Museum.
China’s huge market potential for imported timber has attracted the attention of a number of global companies from a wide range of industries, including construction, paper and furniture manufacturing, including the LEF Network to China, a Sino-European timber cooperation project between Latvia, Estonia and Finland.
Ms. Līga Sieva, Head of the European Projects Department of the Latvian Chamber of Commerce and Industry, highlighted the LEF Timber Cooperation Project as one of the priority EU projects supported by the EU Development Fund to promote quality wood products from the Baltic Sea to China. The Chinese market is very attractive to European distributors, said Ms. Schiavo. It is hoped that the dialogue will lead to a deeper understanding between the two sides and will pave the way for further cooperation afterwards.
The LEF China cooperation network includes 80 EU wood and wood products companies from three countries, all of which are competitive, unique and specialized in their respective fields of expertise, and has selected 19 companies that are best suited for cooperation with Chinese companies. These companies produce all kinds of wooden houses and garden houses, all kinds of wooden building materials, high quality wooden furniture, floor and wall panels, etc.
Contact Panda if you need more inforamtion.
Qualifications required for importing timber companies.
- China Import Company requires wholesale and retail timber items in the scope of business license
- Domestic importing companies must have import and export rights
- Customs consignee and consignor registration certificate
- Registration form of the inspection unit for the record
- such as special wood (mahogany, sandalwood, etc. need to handle the species certificate)
How to export wood to China? The detailed process is as follows：
Although there are many trees in China, many furniture companies still import wood from abroad because of differences in species, etc. Different species of wood are imported from different countries and regions, and they can be used in different ways.
Chinese companies importing timber must make a customs declaration. There are two types of customs declarations for wood imports: general trade import declarations and manual import declarations.
The main varieties of wood imported by China from all over the world:
The main varieties of wood imported from Europe-Finnish pine, European beech, maple, oak, red cedar, yellow cedar, aspen, cedar, hemlock, populus, mahogany.
The main types of wood imported from Australia-New Zealand pine, palm tung, eucalyptus, cedar, white sandalwood and mahogany.
The main varieties of wood imported from North America-Long Ye Shiye, Canadian Hemlock, Douglas fir, West Bank spruce, Columbia spruce, Jack pine, black pine, white pine, western larch, red fir, lowland fir, Pacific fir , Black Walnut, White Oak, American Arborvitae, Alaska Cypress, Roche Red Juniper, American Black Walnut, Maple, American Beech, Cherry, American Hackberry, Ash Tree, American Alder, Red Oak, White Oak Wood, American Tulip Tree, American Pine, American Black Pine, Sika Spruce, Engman Spruce, Redwood, American Southern Pine, Douglas Fir, American Western Hemlock, American Western Red Arborvitae, Rosen Juniper, Alaska cypress, Canadian wood, American wood, birch, gray walnut, wax wood.
The main varieties of wood imported from Africa-Ophelia cut wood, African yellow sycamore, African black walnut wood, marcus wood, Longui wood, Moaby wood, Ilococco wood, African mahogany wood, Utiar Wood, Chabelle, Tirama, African wax, African teak, Weigmu, zebra, Mimaga, Oumkol, Yexia, East African black rosewood, Pele wood, Zebrawood, African Red Sandalwood, African Teak, Sapele, Mmika, West African Wood, Yaroube, African Silverleaf, East African Wood Rhinoceros, Yellow Gall, Owen Korsu, Winged Apple Pom, African red hematoxylin, cylindrica hematoxylin, African ridge, Yasia wood, Okram, mulberry, African mahogany, African cherry, Manson sycamore, chrysanthemum, Angola rosewood, African cliff bean, zebra Wood, Shabelledong wood, African sycamore, red iron wood, African rosewood, African teak wood, Muminjia wood, tube shaped African Neem.
The main varieties of timber imported from Southeast Asia-Eucalyptus, Asiatica, Teak, Shizi, Yunnan, Tung, Blackboard, Liengas, Nanyang Walnut, Ebony, Indonesian Golden Sandalwood, Youzai, Apitong, Kapo , Guilan, Badula eucalyptus, Yellow Brandy, White Brandy, Light Red Brandy, Dark Red Brandy, Rubberwood, Silver Birch, Balsa Wood, Durian, New Guinea Boxwood, Silver Birch, White Wood, South Oak , Rosewood, olive Dalbergia (Qin Chan), Dalbergia, Malacca, big croton, Compass, Phoebe serrata, Pacific Ironwood, Iron Knifewood, Borneo Ironwood, Nanyang Black Heart Stone, Fujian Cypress.
Types of imported wood：
1. Types of imported timber by origin
South American imported wood: mahogany wood, purple heart wood, Valmara wood, Dada wood, balsa wood, Kaubarir wood, Suriname snake wood, Xinmidang wood, Radiata pine, Oraba wood, Chinese Tong, etc. Representatives of this category.
European imports of wood: European beech, maple, Finnish pine, red cedar, yellow cedar, oak, cedar, hemlock, aspen, mahogany, and poplar wood are the main representative varieties.
North American imported wood: Jack pine, black pine, white pine, west shore spruce, Columbia spruce, western larch, red fir, lowland fir, red oak, white oak, Douglas fir, birch, gray walnut, wax wood, Rosen Juniper and Alaska Cypress are the main representative varieties.
Wood imported from Africa: Ophelia cut wood, Bailey wood, Yarou shell wood, Tiama wood, Rhizoma amur, yellow birch wood, African wax wood, zebra wood, winged apple pom wood, Angola rosewood, African sycamore , Red Ironwood, Cylindrical African Neem, etc. are the main representative varieties.
In addition, there are imported timber from Southeast Asia typified by eucalyptus, guilan, yellow orchid, etc., and imported timber from Australia typified by palm tung, cedar, and redwood.
2. Types of imported timber by attributes
According to the attributes of imported wood, it can be divided into four categories: Pterocarpus, Dalbergia, Clematis, Helix, and Persimmon:
1. The red sandalwood genus can be subdivided into red sandalwood, rosewood, etc., sandalwood red sandalwood (India) is the Indian leaflet red sandalwood, only this kind belongs to the red sandalwood category, and Andaman red sandalwood Man Islands), Hedgehog Rosewood (mostly in tropical Africa), Hedgehog Rosewood (mostly in tropical Africa) and so on.
2. Dalbergia is roughly divided into fragrant branches, black rosewood, red rosewood, etc., knife-shaped black Dalbergia (produced in Myanmar), black Dalbergia (produced in Southeast Asia), broad-leaved yellow Sandalwood (produced in India, Java, Indonesia), Amazon Dalbergia (produced in Brazil), Brazilian Dalbergia (produced in tropical Asia), etc.
3. There are only chicken wings in the genus Clematis and Genus, which can be subdivided into African clematis (mostly in the African Congo Basin), Baihua Cliffwood (mostly in Burma, Thailand), and Helix (Mostly produced in Southeast Asia) and so on.
4. The genus Persimmon is divided into two types: ebony and striped ebony. There are hairy medicine ebony (produced in the Philippines), ebony (produced in Sri Lanka), and ponsai ebony (produced in the Philippines).
Classification of China’s import customs declaration:
1. Ordinary wood (there is no F in the supervision conditions)
2. Non-endangered timber (the supervision condition is F, and a non-endangered certificate is required)
3. Endangered wood (the supervision condition is F, need to apply for endangered certificate)
Documents required for inspection of imported timber in China:
1. Certificate of origin, phytosanitary certificate, fumigation certificate, code list, packing list, commercial invoice, trade contract, ocean bill of lading.
2. Some woods also need to apply for a species certificate (such as wood) at the Forestry Bureau
3. A small amount of wood needs to be certified as an endangered species (such as Tribulus terrestris from South America, red sandalwood from India)
4. Logs also provide code lists
5. We can handle species and endangered certificates for customers:
Materials needed for handling endangered species—Description of Import and Export of Wild Animals and Plants, Precious Trees and Alien Species and Products Certificate of origin, phytosanitary certificate, foreign CITES certificate, enterprise three certificates, foreign trade operator filing form.
China’s log import general trade declaration:
1. Receipt: After receiving the documents, check whether the documents are complete and accurate. Documents: phytosanitary certificate of origin, bill of lading, code list.
2. Order exchange: After receiving the customer’s full set of documents, it is necessary to find out which shipping company the imported goods belong to, which acts as a shipping agent, and where it can be exchanged for a bill of lading for customs clearance. It depends on which form of bill of lading is the original bill of lading or that the radio is generally an instruction bill of lading or a registered bill of lading and the corresponding endorsement on the bill of lading. With the endorsement of the bill of lading to the corresponding shipping company / ship agent for a bill of lading!
When receiving the shipping company’s arrival notice, we must add the correct Chinese customs declaration information to the shipping company (preferably, when the full set of documents is received, the error rate of the supplementary information is relatively small)
3. Inspection: The power of attorney is required for inspection. The information is complete and accurate. The most important thing about wood is whether the information on the phytosanitary certificate and the certificate of origin are the same, such as the phytosanitary certificate of the certificate of origin is incorrect or there is no fumigation. But it requires the approval of the director, and the customs clearance bill will be issued after the completion of the commodity inspection billing.
4. Customs declaration: Customs declaration information: bill of lading, customs clearance list, invoice, contract, customs declaration power of attorney, etc., sent to the customs, customs review, customs declaration information is submitted to the customs after the declaration data, if the application center returns the order, according to the situation Corrected and sent again (usually for specifications and the like). One of the cases is that the Center for Out-of-Price Transfer Orders believes that the price we quoted is too low and needs to be re-evaluated. There are three cases of outward transfer:
(1) The original price is passed
(2) According to the customs price
(3) The price negotiated by both parties
After the price is passed, the tax bill is paid to the customs to review the tax bill. The price cannot be agreed, and the customs can be cleared first by margin. The tax bill is issued after the price is determined. (30%) Let go after checking the goods!
5. Release: All the costs of taking the release slip to the shipping company to pick up the container list must be settled. If you need to pay the deposit, you must pay the deposit. The trailer will deliver the container!
The approximate cost of Chinese timber imports:
1. Exchange fee-terminal fee-counter rental fee
2. Agent inspection declaration fee-customs declaration agent-commodity inspection agent-quarantine and disinfection
3. Additional procedures for inspection cabinets (subject to the inspection)
4. Port fees (depending on the goods)
5. Commodity inspection regulations fee: three thousandths per ticket.
Issues needing attention in China’s timber imports:
1. The Latin name and English name of the imported wood, which are related to the customs price review.
2. Choose the appropriate port for the wood with different brand names.
3. Timber imports are all 0 tariffs, and the tariffs for logs and wood furniture are different.
What are the risks of exporting timber to China? What needs attention? What if the quarantine fails?
- What are the risks of exporting timber to China?
Although it is generally better to export resource products, wood is extremely easy to carry harmful organisms such as insects and germs. Once invaded, it will pose a serious threat to China’s ecological environment and forestry safety.
- What do I need to know before exporting wood?
In order to prevent foreign pests from being introduced into China with wood and reduce unnecessary economic losses, enterprises should understand the relevant requirements for exporting wood in advance.
2. Sawn timber
1. Definition of log: unprocessed or treated wood.
2. Definition of sawn timber: timber cut with longitudinal data, with or without its original cylindrical shape, with or without bark.
- Customs declaration materials required for China’s imports.
1. The “Plant Quarantine Certificate” issued by the official country or region;
2. Certificate of origin, trade contract, invoice and other necessary documents.
Note: For the imported logs with bark, the customs needs to check whether the “Plant Quarantine Certificate” has the content marked.
- Special reminder!
★ 1. Conifer logs of South Carolina and Virginia are prohibited from importing;
★ 2. The logs of the ash tree from the countries and regions where the ash blight fungus occurs are forbidden to import;
★ 3. The ash wood from the countries and regions where ash blight pathogens occur should be peeled, and the thickness should not exceed 30mm. After continuous heat treatment at above 66 ℃ for 24 hours, the water content after treatment is less than 20%.
Countries and regions where ash blight fungus occurs:
Poland, Lithuania, Latvia, Sweden, Czech Republic, Germany, Denmark, Estonia, Belarus, Slovakia, Romania, Austria, Norway, Russia (Kaliningrad), Slovenia, Switzerland, Finland, France, Hungary, Italy, Croatia, Belgium , Netherlands, United Kingdom, Ireland, Ukraine.
- What is the focus of on-site quarantine inspection in China?
2. Soil and other prohibited items;
3. Various types of damage, such as holes, worm holes, insect dung, insect tracts, ant tracks, cyanosis, decay, juice, disease spots, symptoms, etc .;
4. Harmful organisms in various living conditions, such as live insects, cocoon pupae, galls, hyphae, fruiting bodies, and other biological organisms that can be carried along with wood to spread harm;
5. The wooden packaging or cushioning material provided.
- How do Chinese laboratories conduct identification?
1. Carry out detailed symptom inspection on the sample wood segment and bark, observe the bark and xylem for typical disease symptoms, and then carry out fungal disease tissue section or bacterial disease bacterial overflow inspection;
2. Use shallow disk separation or funnel separation to detect the parasitic nematodes in the sample wood, bark and soil samples.
The collected insect samples and the pests and the insects dissected from the wood segments and bark of the samples were screened and further examined.
- What if the quarantine fails?
If a living quarantine pest or other living pest with quarantine risk is found and may cause proliferation, it shall be handled according to the following methods:
1. If there is no effective detoxification treatment method, return or destroy it;
2. If there is an effective treatment method, the customs shall implement quarantine treatment.
- For example!
Case: In September 2019, Nansha Customs, a subsidiary of Guangzhou Customs, intercepted pine wood nematodes from two batches of Torch Pine logs imported from the United States. To prevent the spread of the epidemic, immediately supervise enterprises to do heat treatment at designated regulatory sites.
Pine wilt caused by pine wood nematodes is called pine cancer. It is a devastating disease with many transmission routes, concealed parts, fast incidence, long latency, and difficulty in treatment. Since its discovery in 1982, its rapid spread has posed a devastating threat to millions of hectares of pine forest in southern China.
- What is epidemic surveillance?
The monitoring of forest pests in China is the basic work to prevent the introduction of foreign pests, make up for the lack of on-site inspection methods, implement emergency response to major epidemics, and control and mitigate the harm of foreign forest pests.
Generally, monitoring is carried out every year from April to October.