HS Code:
Dark Red Meranti, Light Red Meranti, and White Lauan (Luan) are tropical hardwood species from the Shorea genus, primarily found in Southeast Asia. These woods are classified under HS Code 4407.29, which covers sawn or chipped wood of tropical species. They are widely used in construction, furniture manufacturing, and plywood production due to their durability, attractive grain, and ease of working. Dark Red Meranti is known for its deep reddish-brown color and strength, Light Red Meranti for its lighter tone and versatility, and White Lauan for its pale color and use in veneer and plywood.
Total Trade Volume
Approximately 5.2 million cubic meters
Data from 2022
Source
International Tropical Timber Organization (ITTO) and UN Comtrade Database
2.1 million cubic meters
40.4% of total trade of total trade
Stable
1.8 million cubic meters
34.6% of total trade of total trade
Decreasing
0.5 million cubic meters
9.6% of total trade of total trade
Decreasing
0.3 million cubic meters
5.8% of total trade of total trade
Stable
0.9 million cubic meters (imports)
17.3% of total import market of total trade
Increasing
Average Rate
5-10% ad valorem
Highest Rate
20% (imposed by certain South Asian countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like ASEAN Free Trade Area for member countries)
Increased demand for sustainable timber
Higher costs for certified Meranti and Lauan due to stricter regulations and certification requirements, impacting smaller exporters.
2021-2023
Shift in demand to alternative materials
Substitution with engineered wood and non-tropical hardwoods in some markets due to environmental concerns, reducing overall trade volume.
2020-2022
Growth in Asian construction markets
Rising demand in countries like China and India for tropical hardwoods in construction and furniture, partially offsetting declines in Western markets.
2019-2023
Indonesia introduced stricter export licensing for tropical timber, including Meranti and Lauan, to curb illegal logging and promote sustainable forestry practices.
January 2023
Reduced export volumes in the short term, potential price increases, and a push for certification among exporters.
The EU's new deforestation regulation, set to be fully enforced by late 2024, requires traceability and proof of deforestation-free supply chains for timber imports, including Shorea spp.
June 2023
Increased compliance costs for exporters to the EU and potential market access barriers for non-compliant suppliers.
Japan, a major importer of Meranti and Lauan, has ramped up demand for certified sustainable timber under its Green Purchasing Law updates.
April 2022
Favors exporters with sustainability certifications, potentially marginalizing smaller producers without resources for certification.