China Log Export Update

May 18th, 2018                                                                                                                                                                                                                                                                                                                                                                                                                  

 

To Our Valued Customers: 

 

Laufer Group has been closely following the situation in China regarding log exports from the USA.     The American Hardwood Export Council has issued an update in its May Market Report.   Below are the 2 biggest takeaways from their update:

 

1. China has agreed to allow for in-country fumigation for shipments that are currently on the water (prior to May 2, 2018) provided that the exporting company can demonstrate that it has successfully exported logs to China in the past. This concession does not apply to future shipments, however, and so negotiations with the Chinese government on this matter continue.

 

2.  The Chinese General Administration on Customs (GACC) announced that treatment of raw logs in country will no longer be allowed at Chinese ports and that logs fumigated in Hong Kong will no longer be allowed entry

into mainland ports.

 

Below is the full announcement:

 

Quote:

Several AHEC members have stated that some American hardwood logs shipments on April 28, 2018 at

Yantian Port through Hong Kong were retained and clearance of the shipment was denied. According

to source from logs importers, to cut down fumigation cost, some logs importers import logs through

Yantian to get clearance while do paperwork through Hong Kong, they can avoid fumigation or debarking

since fumigation is not mandatory required or debarking in Hong Kong. However Chinese custom found

out this process does not meet the compliance and quarantine regulation as shippers must have logs

fumigated in the US or China. At the moment, AHEC members and logs importers are demanding Chinese

custom to give grace period to re-fumigate logs shipments that are on the water to Chinese ports and

do not have to return the logs shipment to the US for fumigation. John Chan, has been communicating

closely with AHEC Executive Mike Snow, Director and Counselors officials OAA and ATO in Beijing and

APHIS and President of China Wood Products Distribution Association(CDPDA) on this matter. It is our

belief that through this direct dialogue the clearance of logs will resume shortly, however fumigation will

likely be required in the US for future shipments.

 

Meanwhile, Mike Snow, Executive Director of AHEC reported that a conference call was held along with

NHLA, AHEC, the Hardwood Federation and several other hardwood trade associations and industry

leaders participated with APHIS Deputy Administrator Osama El-Lissy and his staff. The call was convened

to discuss the developing situation in China regarding the ramped up inspections of containers with

untreated logs. The Deputy Administrator started the call by recapping the issue in which the Chinese

General Administration on Customs (GACC) announced that treatment of raw logs in country will no

longer be allowed at Chinese ports and that logs fumigated in Hong Kong will no longer be allowed entry

into mainland ports.

 

Deputy Administrator El-Lissy announced the he and his team have been in discussions with Chinese

officials to resolve the situation with untreated logs and continue trade in these products with as little

interruption as possible. Based on these discussions, China has agreed to allow for in-country fumigation

for shipments that are currently on the water (prior to May 2, 2018) provided that the exporting company

can demonstrate that it has successfully exported logs to China in the past. This concession does not apply

to future shipments, however, and so negotiations with the Chinese government on this matter continue.

 

Unquote

 

Your Laufer Forest Product experts are ready to assist you as we obtain additional information from China.

   

Our #1 priority as always is to help maintain our customers’ competitiveness, to keep your cargo flowing as quickly and as consistently as possible, and to continue to communicate effectively along the way.  Our nimbleness, market awareness, and “Built Different” philosophy enable us to do this - as your partner. 

 

Thank you very much for all your support.

http://www2.laufer.com/forest-products.html

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