April 2004

Indonesian Action Plan Enters Second Phase

27 April 2004

The Timber Trade Federation has held another meeting of its Indonesia Group, acknowledging 90% success in implementing its Indonesian Action Plan to source legal timber from Indonesia and agreed to launch its second phase. The original Action Plan launched in July 2003 has been fully implemented except for a planned trip to Indonesia, which will take place later this year.

The principal aim of the Action Plan was to identify through a scoping study, the mills most capable of supplying legally verified timber and this has now been completed.  The second phase will examine the possibility of setting up a general Common Auditing Framework based on agreed common standards and the next meeting will be held on 9 June 2004.

TTF Spokesman Andy Roby said, “ The Federation is very pleased with almost 100% completion of the initial Action Plan and it has now been agreed to take this work forward by developing a series of Phase Two actions around the creation of a Common Auditing Framework and individual Mill Action Plans.  We are satisfied that the UK trade is doing all it can to help its Indonesian suppliers to meet our new market requirements for legal timber.  We will also continue to work with our European counterparts particularly the Dutch in progressing this process.”

For further information contact Andy Roby on 020 7839 1891
Note: For details of the Action Plan visit http://www.ttf.co.uk/news/releases/2003/july.asp

TTF Attacks EU Anti-Dumping on Okoume Plywood

23 April 2004

The Timber Trade Federation has severely criticised the EU decision to impose Anti-Dumping measures (1) on Chinese Okoume plywood as unfair, punitive and technically incorrect.  The EU’s Anti-Dumping Committee decided on 21 April to impose these measures following an enquiry launched last year that examined okoume plywood from China compared with Okoume plywood manufactured in Morocco.

The basis for this decision ignores the fact that that the Moroccan board comprises Okoume veneers throughout and uses exterior grade glue.  The Chinese board comprises a plantation growth poplar core with a thin Okoume face and back veneers and generally lower grade glues.  This makes the raw material cost of the Chinese board considerably lower and therefore a direct cost comparison is not valid.

The Federation entirely dismisses the argument that the Chinese and European panels are like products because technically the Chinese end uses would be different from the European boards due its glue line, bending strength, density, machining properties, stability and sanding opportunities.

In addition plywood with a plantation grown Poplar core must be inherhently more environmentally acceptable and therefore to effectively exclude such a product from the European market and would run counter to both EU and UK policies on Illegal logging.            

If these measures are implemented then they must only apply to contacts placed after the implementation date, otherwise UK buyers will suffer significant financial hardship on the basis that they are legally locked into existing supply contracts.  If they accept goods from contracts already placed they will be un-saleable because of the extra duty and if they cancel they will face legal action from suppliers who have already purchased raw materials and ship space.  

The TTF backs the UK Government’s opposition to this measure but recognises that the UK view was voted down at the Committee.

TTF Spokesman Mark O’Brien said, “ We have been in contact with the DTI at Ministerial and official level to see what can be done.  We are hoping that if the original decision cannot be overturned, then at least additional duty will not apply to existing contracts.”

For Further Information Call Mark O’Brien on 020 7389 0126

Note: (1) Goods are said to be dumped when they are sold for export at less than their normal value where normal value is defined as the price obtained for the like goods in the exporter’s home market.