Following the poor log availability, rapidly increasing export volumes and prices together with fierce competition for premium quality logs Russian plywood industry has been lobbying changes in birch log export policies. And finally, they have succeeded. According to Russian Federation Governmental Decree from 17.07.2018 N 836, there will be special limitations implemented in birch log exports from Russia, starting from the beginning of 2019.
Here is a short summary of the main issues, described in the above- mentioned document:
- What products fall under the regulations?
Birch (Betula spp.) logs, with the low-end diameter above 15 cm and length exceeding 1 m. Current customs code – 4403 95 0001.
- What is the new export mechanism?
Export limitations are implemented through quotas, linked to average export volume of the birch logs in corresponding period throughout 2014-2016). Quota amounts to 567 000 m3 for the first half of 2019.
- How and to whom are the quotas granted?
The quota will be implemented by granting export licences to qualified companies. The licenses are to be issued to the companies, who have been involved in birch log exports in 2014-2016 and in the amount proportional to their previously exported volumes.
- Who grants the quota?
Ministry of Industry & Trade.
- Which importing countries will be affected?
All countries outside the Eurasian Economic Union (EEU). Note: member countries of EEU are Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
- How long the regulations are valid for?
From 1.01.2019 to 30.06.2019.
Previously, I have been writing several insights on the situation with availability and price trends of birch logs in Russia as well as possible implications on various stakeholder group (Insight 1, followed by Insight 2).