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📦 Of Padauk (Padouk) or Narra (Pterocarpus spp.)

Of Padauk (Padouk) or Narra (<u>Pterocarpus </u>spp.)

HS Code:

📦

Overview

Padauk (Padouk) or Narra, classified under the genus Pterocarpus spp., refers to a group of tropical hardwood species primarily used for high-quality furniture, flooring, musical instruments, and decorative items due to their durability and distinctive reddish-brown color. These woods are sourced from regions in Africa, Asia, and Latin America. The trade of Padauk and Narra is governed by international regulations such as CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) for certain species to prevent overexploitation and ensure sustainable harvesting. The HS Code for Padauk and Narra typically falls under 4407 (Wood sawn or chipped lengthwise) or 4403 (Wood in the rough), depending on the processing stage.

Total Trade Volume

Approximately $150 million USD

Data from 2022

Source

International Trade Centre (ITC) Trade Map, UN Comtrade Database

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

15% (imposed by certain South Asian countries)

Lowest Rate

0% (under free trade agreements like ASEAN)

Common Restrictions

  • CITES Appendix II listing for certain Pterocarpus species, requiring export permits
  • Export bans or quotas in some African countries to curb illegal logging
  • Import certification requirements for sustainability and legality (e.g., EU Timber Regulation, Lacey Act in the US)

Market Trends

Rising demand in furniture and luxury goods markets

Increased export volumes from African countries to Europe and North America due to preference for exotic hardwoods

2021-2022

Stricter environmental regulations

Reduced supply from Southeast Asian countries like Myanmar due to logging bans and sustainability policies

2020-2022

Growth in sustainable certification

Higher prices for certified Padauk/Narra as buyers prioritize FSC (Forest Stewardship Council) certified timber

2019-2022

Recent Developments

CITES Update on Pterocarpus erinaceus

Pterocarpus erinaceus (African Rosewood) remains under CITES Appendix II, with stricter monitoring of trade from West African countries due to overharvesting concerns.

November 2022

Potential reduction in supply from countries like Nigeria and Ghana, driving up prices.

EU Timber Regulation Enforcement

The European Union has increased scrutiny on timber imports, requiring more rigorous due diligence for Padauk from African origins to combat illegal logging.

March 2023

Increased compliance costs for exporters and potential delays in shipments to EU markets.

Myanmar Export Restrictions

Myanmar has imposed temporary bans on the export of raw timber, including Narra, to promote domestic processing industries.

January 2023

Significant drop in raw Narra exports, redirecting trade to processed wood products.