HS Code:
This category pertains to plywood, veneered panels, and similar laminated wood products with at least one outer ply made of specified tropical woods such as Dark Red Meranti, Light Red Meranti, White Lauan, Sipo, Limba, Okoumรฉ, Obeche, Acajou d'Afrique, Sapelli, Virola, Mahogany, Palissandre de Para, Palissandre de Rio, or Palissandre de Rose. These woods are primarily sourced from tropical regions and are valued for their durability, aesthetic appeal, and versatility in construction, furniture, and decorative applications. The trade of these products is influenced by environmental regulations, sustainability concerns, and demand in construction and interior design industries globally. The HS Code for this category is typically under 4412, specifically subcategories like 4412.31, depending on the exact product specifications.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 800 million
32% of total trade
Increasing
USD 600 million
24% of total trade
Stable
USD 300 million
12% of total trade
Increasing
USD 200 million
8% of total trade
Stable
USD 150 million
6% of total trade
Decreasing
Average Rate
6.5%
Highest Rate
15% (imposed by certain EU countries on non-certified timber products)
Lowest Rate
0% (under free trade agreements like ASEAN-EU or specific bilateral agreements)
Growing demand for certified sustainable wood products
Increased market share for countries with robust certification systems like Indonesia and Malaysia, while non-compliant exporters face reduced access to major markets like the EU and US.
2021-2022
Shift towards alternative materials
Rising use of engineered wood and composites as substitutes for tropical plywood in some regions due to cost and environmental concerns, slightly reducing demand.
2020-2022
Strengthening environmental regulations
Stricter import policies in key markets (e.g., EU Deforestation Regulation) are pushing exporters to adopt sustainable practices, increasing production costs but also opening premium markets.
2023
The EU introduced the Deforestation Regulation, requiring all timber and wood products, including tropical plywood, to be deforestation-free with verifiable supply chains. This impacts exporters who must comply by December 2024.
June 2023
Potential trade disruptions for non-compliant exporters, while certified suppliers may gain competitive advantage in the EU market.
Indonesia expanded its Timber Legality Assurance System (SVLK) to cover more exporters, ensuring compliance with international sustainability standards and strengthening trade ties with the EU and US.
March 2023
Enhanced market access for Indonesian tropical plywood products, potentially increasing trade volume by 10-15% in key markets.
Brazil introduced stricter monitoring and penalties for illegal logging in the Amazon, affecting the supply of tropical woods like Mahogany and Virola used in plywood production.
January 2023
Short-term supply constraints leading to higher prices, but long-term benefits for sustainability and market trust.