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Monitoring the Technical and Environmental Standards of Tropical Timber Products in International Markets

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Monitoring the Technical and Environmental Standards of Tropical Timber Products in International Markets MONITORING THE TECHNICAL AND ENVIRONMENTAL STANDARDS OF TROPICAL TIMBER PRODUCTS IN INTERNATIONAL MARKETS Revised final report by: Mr. Jukka Tissari FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS 2010 i TABLE OF CONTENTS 1. INTRODUCTION 1 1.1 Background 1 1.2 Objectives 1 2. STANDARDS IN THE WORLD TRADE CONTEXT 2 2.1 Principles and Benefits of Standardization 2 2.2 Technical Barriers on Trade (TBT) 3 2.3 Sanitary and Phyto-sanitary Measures (SPS) 3 2.4 Government Procurement Agreement (GPA) 4 2.5 Defining Product Quality with Standards 4 2.6 Developing Country Perspective 4 3. REVIEW OF STANDARDS IN THE ROUNDWOOD AND PRIMARY PROCESSED WOOD PRODUCTS 5 3.1 Context 5 3.2 International and National Associations’ Work on Standards 6 3.2.1 ATIBT 6 3.2.2 IWPA, IHPA and NHLA 6 3.3 Main Standard Systems 7 3.3.1 Harmonization of Standard Systems 7 3.3.2 CEN Standard and Keymark 8 3.3.3 The European CE Marking 10 3.3.4 ISO 10 3.4 Standards by Product Group 13 3.4.1 Roundwood and Sawn Timber Terminology 13 3.4.2 Log Grading Rules by ATIBT 13 3.4.3 ATIBT Sawn Timber Grading Rules 14 3.4.4 International Veneer and Plywood Standards 15 3.5 Formaldehyde Requirements 21 3.5.1 Overview on International Regulations 21 3.5.2 Europe 22 3.5.3 USA 23 3.5.4 Japan 25 3.6 Regulation on Solid Wood Packaging Material in the EU 25 3.7 China’s New Timber Standards Relevant to Tropical Logs 26 3.8 Development of Environmental Standards: Forest Certification 27 3.8.1 Forest Stewardship Council 27 3.8.2 Programme for the Endorsement of Forest Certification Schemes 29 4. REVIEW OF STANDARDS IN THE FURNITURE SECTOR 31 4.1 Manufacturer’s Choice to Adopt Standards and Quality Controls 31 4.2 Product Safety Standards 32 4.3 Furniture Product Standards 33 4.4 Comparison of Furniture Standards in the EU Countries 34 5. FACILITATION OF INFORMATION EXCHANGE ON TECHNICAL AND ENVIRONMENTAL STANDARDS 36 6. CONCLUSIONS 38 7. RECOMMENDATIONS ON FUTURE ACTIONS 40 ii LIST OF FIGURES Figure 3.1 A Visual Example of Detecting Defects in Sawn Timber for Grading and Further Processing LIST OF TABLES Table 3.1 A Summary of National Hardwood Lumber Association’s Sawnwood Stan- dard Grades Table 3.2 A Simplified Guide to Equating APA Veneer Appearance Grades (PS1-95) with BS EN 635: Part 3 Table 3.3 A Summary of IHPA’s Procurement Standard for Imported Hardwood Ply- wood Table 3.4 Formaldehyde Emission Requirements for Composite Wood Products in California (CARB) Table 3.5 Formaldehyde Emission Requirements for Engineered Wood Flooring in the USA Table 4.1 Comparison of Selected Furniture Standards Table 4.2 ISO Furniture Standards LIST OF ANNEXES Annex 1 Terms of References Annex 2 European Standards for Roundwood, Sawn Timber and Timber Structures Annex 3 Selected Chinese Timber Standards Annex 4 CEN Timber and Furniture Standards under Development Annex 5 Literature Disclaimer The views expressed in this paper are those of the author and do not necessarily reflect the views of the Food and Agriculture Organization of the United Nations. The designations employed and the presentation of material in this paper do not imply the expression of any opinion whatsoever on the part of the secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers and boundaries. iii 1. INTRODUCTION 1.1 Background Several tropical countries have expressed concerns that evolving regulations like product standards, environmental credentials, as well as codes regarding safety, health and building practices in consumer markets restrict the expansion and diversification of the international trade in wood products and furniture. While the globalization is rightly safeguarded by tech- nical requirements to protect the health and safety of consumers and to establish product- quality conformity among producers, these carry also an unpopular potential to create obsta- cles to fair market access. Technical and environmental standards have become an important issue in international trade of tropical timber products. A recent example can be found in wood and wood packaging ma- terials, which need to have either debarking, fumigation, or drying treatments for phyto- sanitary regulations into importing countries. Other examples include the Hardwood Plywood & Veneer Association (HPVA) voluntary plywood standards and the grading standards of the National Hardwood Lumber Association (NHLA) in the USA, as well as the CE-marking on timber products in the European market. Other technical standards may include e.g. rules of consistency on dimensions of wood exported for different uses such as flooring, decking, and furniture. In view of such important developments in international timber market places, producers in tropical countries will have to better comply with the requirements of the relevant technical and environmental standards in order to access to the international markets. This study was commissioned to analyze, document and disseminate such technical and environmental stan- dards in selected international markets in order to promote further processing and trade of tropical wood products. 1.2 Objectives The study was set out with the following three objectives: (i) Monitor and assess the major developments of technical and environmental standards including comprehensive overview at global markets and regulations required for tropical timber products in selected major international markets; (ii) Facilitate information exchange on technical and environmental standards relating to tropical timber products; (iii) Make recommendations on future actions that could assist tropical producer coun- tries in better understanding and complying the main technical and environmental standards required for tropical timber products in international markets; The full TORs, including ITTO’s reporting and publishing steps, are attached in Annex 1. This study is fully aligned with ITTA, 1994, Article 27, Paragraph 3(a), ITTO Action Plan 2008-2011, Expected Outcome 1 (E), and ITTA, 2006, Articles 1(b), 1(d), 1(e), 1(f), & 1(k). 1 2. STANDARDS IN THE WORLD TRADE CONTEXT 2.1 Principles and Benefits of Standardization A standard is a document, established by consensus and approved by a recognized body, which provides for common and repeated use rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context. Standards should be based on the consolidated results of science, technology and experience, and aimed at the promotion of optimal benefits. Standard becomes an international standard if it is adopted by an international standardiz- ing/standards organization and made available to the public. Distinction must be made from International Standard (capital letters), which distinguishes its origin at the international standards organizations, like ISO. Standard has global relevance if it can be used / implemented as broadly as possible by af- fected industries and other stakeholders in markets around the world. (Definitions from (ISO/IEC Guide 2:1996, ISO/IEC Directives, Part 2: 2001) Standards can be used as the technical basis for trade in end-products between willing buyers and sellers, or as a means of facilitating compliance to technical regulations. They are also used extensively by companies in production, product, service and process environments. They are developed by a transparent, open and consensus-based process, involving interested stakeholders, and defining fitness for purpose in the case of product standards, and good prac- tice in the case of processes. Management system standards assist organizations in the man- agement of their operations. The widespread use of standards is a necessary precursor to the evolution of a culture of quality in society. (ISO/UNIDO: National Standards Bodies in De- veloping Countries) The WTO (World Trade Organization) principle states that products originating from other WTO member countries shall not be accorded treatment less favourable than like products of national origin. Every WTO member - while allowing imports - has the right to adopt stan- dards it considers appropriate for human life, health or for the protection of the environment or for prevention of deceptive practices. Standards are most beneficial tools for fostering economic growth and facilitating trade. Stan- dards can be used for contributing directly to: 1. Economic growth: • Economies of scale • Promote interoperability of products and services • Encourage greater competition • Facilitate trade 2. Environmental integrity: • Promote ecological safety • Environmental management • Energy efficiency • Carbon footprint 2 • Quality of air, soil & water 3. Social Equity: • Consumer protections • Enhance safety of products • Worker protection • Health services • Disseminate innovation The three most relevant WTO Agreements are briefly described in the next chapters, in order to understand their contexts in regulating standard-setting and use in international trade. 2.2 Technical Barriers on Trade (TBT) The agreement of Technical Barriers on Trade (TBT) in particular seeks to assure that regula- tions, standards, testing and certification procedures including packaging, or marking and la- belling requirements do not create unnecessary hurdles to trade. However, TBT also encour- ages member countries to use international standards where these are appropriate, without lowering their national levels of protection against defected
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