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📦 Birch (Betula spp.) and beech (Fagus spp.)

Birch (<u>Betula</u> spp.) and beech (<u>Fagus</u> spp.)

HS Code:

📦

Overview

Birch (Betula spp.) and beech (Fagus spp.) fall under the category of hardwood timber and wood products, often classified under HS Code 4403 (Wood in the rough) or HS Code 4407 (Sawn or chipped wood). These species are primarily used in furniture manufacturing, construction, and paper production due to their durability, aesthetic appeal, and workability. Birch is known for its light color and fine grain, making it popular for veneer and plywood, while beech is valued for its strength and uniform texture, often used in cabinetry and flooring. Global trade in these species is influenced by sustainable forestry practices, regional availability, and demand from the construction and furniture industries.

Total Trade Volume

Approximately $2.5 billion USD

Data from 2022

Source

United Nations Comtrade Database & International Tropical Timber Organization (ITTO)

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

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

Lowest Rate

0% (under free trade agreements like EU Single Market or USMCA)

Common Restrictions

  • Export quotas to prevent overharvesting
  • Certification requirements (e.g., FSC certification for sustainable sourcing)
  • Import bans on illegally logged timber under regulations like the EU Timber Regulation (EUTR)
  • Phytosanitary requirements to prevent pest spread

Market Trends

Rising demand for sustainable wood products

Increased preference for certified birch and beech from sustainably managed forests, driving up prices for compliant suppliers

2021-2023

Shift towards engineered wood products

Reduced demand for raw birch and beech logs as manufacturers opt for plywood and laminated products, impacting traditional exporters

2020-2022

Geopolitical disruptions affecting supply chains

Sanctions and export bans on Russian timber have led to supply shortages in Europe, pushing buyers towards alternative suppliers like Romania and the Baltics

2022-2023

Recent Developments

EU Tightens Timber Import Regulations

The European Union has updated its timber regulation framework, mandating stricter due diligence for birch and beech imports to combat illegal logging.

June 2023

Increased compliance costs for exporters but improved market access for certified suppliers

Russia Imposes Birch Log Export Ban

Russia, a major supplier of birch, imposed a temporary ban on raw log exports to encourage domestic processing and address illegal logging concerns.

January 2022

Significant reduction in global birch supply, leading to price spikes and shifts to alternative sourcing regions

US Increases Tariffs on Certain Wood Imports

The United States introduced additional tariffs on beech wood products from specific countries as part of broader trade negotiations.

March 2023

Higher costs for US importers, potentially reducing demand for beech in favor of domestic alternatives