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📦 Birch (Betula spp.)

Birch (<u>Betula</u> spp.)

HS Code:

📦

Overview

Birch (Betula spp.) falls under the category of hardwood timber and wood products, often classified under HS Code 4403 (Wood in the rough) or HS Code 4407 (Wood sawn or chipped lengthwise). Birch is valued for its light color, fine grain, and versatility, making it a popular choice for furniture, plywood, flooring, and paper production. It is primarily sourced from temperate and boreal forests in the Northern Hemisphere, with significant trade driven by demand in construction, interior design, and manufacturing industries. Global trade in birch wood is influenced by sustainability concerns, forest management policies, and regional availability.

Total Trade Volume

Approximately $2.5 billion USD

Data from 2022

Source

UN Comtrade Database and International Tropical Timber Organization (ITTO) Reports

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

15% (imposed by certain developing countries to protect domestic industries)

Lowest Rate

0% (under free trade agreements such as EU internal trade or USMCA)

Common Restrictions

  • Export quotas on raw logs to encourage local processing
  • Certification requirements for sustainable forestry (e.g., FSC or PEFC)
  • Import bans on illegally sourced timber under regulations like the EU Timber Regulation (EUTR) or US Lacey Act
  • Anti-dumping duties in specific trade corridors

Market Trends

Growing demand for sustainable and certified wood products

Increased market share for countries with strict forestry regulations like Finland and Sweden, while uncertified suppliers face reduced access to major markets like the EU.

2021-2023

Shift towards engineered wood products

Birch plywood and laminated veneer lumber (LVL) are seeing higher demand compared to raw timber, affecting trade patterns by increasing value-added exports.

2020-2022

Impact of geopolitical conflicts

Sanctions and export bans on Russian birch wood have led to supply shortages in Europe, pushing buyers towards alternative suppliers like Canada and the Baltic states.

2022-2023

Recent Developments

EU Sanctions on Russian Timber

The European Union imposed sanctions on Russian timber exports, including birch, as part of broader measures following geopolitical tensions. This has significantly reduced Russian birch supply to Europe.

April 2022

Increased prices for birch in the EU market and a shift towards alternative suppliers like Finland and Sweden.

New FSC Certification Policies

The Forest Stewardship Council (FSC) introduced stricter certification requirements for birch wood sourced from high-risk regions to combat illegal logging.

January 2023

Potential trade barriers for non-compliant exporters, while certified producers gain a competitive edge in premium markets.

US-China Trade Agreement on Hardwoods

A bilateral agreement reduced tariffs on certain hardwood products, including birch, between the US and China as part of trade negotiations.

September 2022

Increased export opportunities for US birch producers targeting the Chinese furniture manufacturing sector.