HS Code:
Ipé, scientifically classified as Tabebuia spp. or Handroanthus spp., is a tropical hardwood commonly referred to as Tahibo, Taheebo, LaPacho, Lapacho, Brazilian Walnut, or Patagonian Walnut. It is primarily sourced from Central and South America, particularly Brazil, and is highly valued for its durability, strength, and rich color, making it a premium material for decking, flooring, furniture, and outdoor construction. Ipé wood falls under the Harmonized System (HS) Code 4407.29, which covers tropical wood sawn or chipped lengthwise, sliced or peeled. The global trade of Ipé is influenced by environmental regulations, sustainability concerns, and demand for high-quality hardwoods in construction and design industries.
Total Trade Volume
Approximately $250 million USD
Data from 2022
Source
United Nations Comtrade Database and International Tropical Timber Organization (ITTO)
$150 million USD
60% of total trade of total trade
Stable
$40 million USD
16% of total trade of total trade
Increasing
$30 million USD
12% of total trade of total trade
Stable
$20 million USD (as importer)
8% of total trade of total trade
Increasing
$10 million USD (as importer)
4% of total trade of total trade
Stable
Average Rate
5-10% ad valorem
Highest Rate
15% (applied by certain Asian countries to protect domestic timber industries)
Lowest Rate
0-2% (under free trade agreements like EU-Mercosur or USMCA for specific partners)
Rising demand for sustainable and certified timber
Increased preference for Ipé with FSC certification has led to higher prices for compliant suppliers and stricter export controls in producing countries.
2021-2023
Growth in outdoor construction and decking markets
Surging demand in North America and Europe for durable hardwoods like Ipé for decking and outdoor furniture has boosted trade volumes.
2020-2022
Tightening environmental regulations
Stricter logging laws and export restrictions in Brazil and Bolivia have reduced supply, driving up costs and shifting trade to alternative tropical hardwoods.
2019-2023
Brazilian authorities implemented stricter monitoring of Ipé exports to combat illegal logging, requiring detailed documentation and certification for all shipments.
March 2023
Short-term supply disruptions and price increases, but long-term benefits for sustainability and market trust.
Negotiations for the EU-Mercosur trade agreement have advanced, potentially reducing tariffs on Ipé imports to Europe, though environmental clauses remain a sticking point.
June 2023
Potential increase in trade volume to EU countries if finalized, benefiting South American exporters.
A boom in residential construction and renovation in the US has driven demand for Ipé as a premium decking material, despite higher costs.
September 2022
Increased imports from Brazil and Bolivia, with US importers stockpiling inventory amid supply chain concerns.