Arbor Resources Blog Updates
Implications for India/New Zealand timber trade
Source: Japan LumberJournal
RUSSIA TO INCREASE LOG EXPORT DUTY INCREMENTALLY TO 80% BY 2021!!!
The Russian government announced a new ministerial ordinance regarding log export from the Far East regions.
It states that if any company, which achieved a certain amount of wood processing, wishes to export logs, 6.5% export duty rate is applied then the duty will be increased step by step and the rate will be 80% after 2021, which practically prohibits log export.
The idea is to promote wood processing in the Far East regions. The ordinance is effective since January 1, 2018.
While promoting processing wood, the government allows export of logs unsuitable for processing and the annual quota of log export is four million cubic meters. Applicable species are whitewood and larch.
Any company, which has amount of share of 20% of all export processed products, is allowed 6.5% export duty then processed percentage is raised year after year like 25% in 2019 and 35% after 2021. Processed products mean lumber, veneer, plywood and wood chip.
Log export duty rate is raised step by step. 25% in 2018, 40% in 2019 , 60% IN 2020 and 80% after 2021.
China buys a sizeable volume of Russian logs and if this new regime is strictly applied, China will need to look for log sources elsewhere and the most likely sources would be North America and New Zealand.