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Chinese tropical plywood on the risk radar

Tropical plywood from China is still high on its risk radar according the Timber Trade Federation in the UK, and the radars of NGOs and competent authorities because of non-compliance in due diligence on composite products from China. Source: Timberbiz

China’s revised Forest Law, which requires a better understanding and working practice of domestic factories to avoid sourcing known illegal timber, could have a positive push for improvement once implemented. However, sourcing composite products with tropical species from China, should be considered inherently high risk.

These products are accompanied by low scores on the Corruption Perception Index (CPI) in both the country of harvest and processing, an abundance of illegal logging reports, and a high likelihood of mixing (with non-declared species or species of different origins) within the supply chain.

Sourcing tropical timber requires robust due diligence by the operator to ensure that relevant risks are properly identified and mitigated before placing on the market. It also requires better control on the factory floor and in the sourcing practices of Chinese manufacturers importing from high-risk regions.

TTF has summarised some key areas of misconceptions when sourcing from China and members have been advised to use its self-assessment and reporting template to examine if common high-risk factors are covered and gaps in due diligence are addressed.