HS Code:
Ipé (Tabebuia spp. or Handroanthus spp.), commonly known as Tahibo, Taheebo, LaPacho, Lapacho, Brazilian walnut, or Patagonian walnut, is a tropical hardwood primarily found in Central and South America. Renowned for its durability, strength, and resistance to weather and insects, Ipé is widely used in outdoor decking, furniture, flooring, and construction. The wood is characterized by its dark brown to reddish-brown color and tight grain. Due to its high demand in global markets, particularly for luxury outdoor applications, Ipé is a significant export commodity for countries in the Amazon Basin. However, overharvesting and deforestation concerns have led to increased scrutiny and regulation of its trade under international agreements like CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) for certain species.
Total Trade Volume
Approximately $250 million USD in global trade value for tropical hardwoods under relevant HS codes (e.g., HS 4407 for sawn wood and HS 4409 for continuously shaped wood). Specific data for Ipé is often aggregated under broader tropical hardwood categories.
Data from 2022
Source
UN Comtrade Database, International Tropical Timber Organization (ITTO), and CITES Trade Database
$150 million USD
60% of global Ipé trade of total trade
Decreasing due to stricter environmental regulations
$40 million USD
16% of global Ipé trade of total trade
Increasing as an alternative source to Brazil
$25 million USD
10% of global Ipé trade of total trade
Stable with moderate growth in sustainable certifications
$15 million USD
6% of global Ipé trade of total trade
Increasing due to rising demand
$10 million USD
4% of global Ipé trade of total trade
Stable with limited supply
Average Rate
5-10% ad valorem on tropical hardwoods (varies by country and specific HS code)
Highest Rate
20% in some South Asian markets to protect domestic timber industries
Lowest Rate
0-2% in free trade zones or under preferential trade agreements (e.g., EU-GSP for developing countries)
Rising demand for sustainable and certified timber
Increased costs for exporters to comply with FSC (Forest Stewardship Council) and other certifications, but higher market access to eco-conscious markets like the EU and North America
2020-2023
Shift toward alternative materials
Growing use of composite decking materials as substitutes for Ipé due to environmental concerns and high costs, slightly reducing demand in some markets
2019-2022
Stricter environmental regulations
Reduced supply from traditional exporters like Brazil due to anti-deforestation policies, pushing buyers to other countries or species
2021-2023
Brazil implemented stricter export quotas and monitoring systems for Ipé to curb illegal logging in the Amazon, requiring detailed traceability documentation.
January 2023
Short-term reduction in Brazilian Ipé exports, increased prices, and diversion of demand to Bolivia and Peru
The European Union began enforcing the EUDR, mandating due diligence for timber imports to ensure they are deforestation-free, affecting Ipé trade.
June 2023
Higher compliance costs for exporters and potential market barriers for non-certified Ipé suppliers
Certain Ipé species under Handroanthus were reviewed for potential uplisting to CITES Appendix I, which would further restrict trade.
November 2022
Uncertainty in markets, prompting buyers to seek alternative hardwoods or certified sources