Export Opportunities

Due to the continued  constraints within Brazil both related to the domestic wood markets alongside the fall in the value of the Brazilian Real (R$). GWD Forestry recommends that export markets now provide the best opportunities at harvest in relation to specific FSPU areas. As such the company has now taken a number of steps in order to facilitate the export of raw timber from the project sites outside of the scope of those original agreements signed at the start of the project.

As such the company is now in the planning phases of exporting timber to its own facilities located within North America and is expected to be in a position to export timber from the projects (under client direction) by the end of 2018 / start of 2019.

Whilst IFU holders are free to direct the company at anytime of their individual wishes GWD Forestry recommends that these external markets at present provide the best potential for raw timber produced by the project as a whole and should be considered by IFU holders prior to harvest notification.

As such GWD will look to both export and process raw wood products in order to add value, achieving optimum pricing within the US markets. Prior to export GWD Forestry has acquired the necessary export licences and has agreed markets in place ready to receive timber from future harvests, whilst has also conducted detailed wood analysis in line with its target focus markets within the US.

Export Considerations

As part of the companies planning process, GWD Forestry has acquired the correct export licensing as shown below in order to export timber at harvest.

GWD Forestry

Before exporting timber to GWD Facilities within North America the following export considerations have been taken into account. GWD Forestry is currently in the planning stages and is expected to start exporting timber by the middle of 2018; whilst export markets are being developed ahead of the planned export operations.

– HS Classifications

– Rates of duty and taxes applicable at the destination

– Import / Export regulations/ requirements

– Permits required for import and export

– Transport options and pricing

– Environment Canada Regulations

Eucalyptus is able to be imported directly to GWD Facilities from Brazil if the guidelines are followed as are outlined in the report below. Some of these conditions require that the wood must be pest free as well as contaminate free. The cargo must also be accompanied by Phytosanitary Certificate issued by the plant protection organization in Brazil.

Eucalyptus Is subject to 6% rate of duty and 5% GST will be applied by Customs

Transport is expected to be via ocean for large shipments. There are a number of ports the company has identified which can handle eucalyptus timber and have FCL container services. A Port of departure is still to be established once suppliers have agreed on terms of sale and export date.

The suggested Inco Term for product would be FOB or CIF. Using one of these terms will allow GWD Forestry to handle export documentation and the issuance of Phytosanitary Certificate.

Eucalyptus Wood Chip Findings

HS Code – 0604.20.90 00

Rate of Duty applicable – 6% Rate of Duty , 5% GST will apply upon importation.

Import Requirement Details Eucalyptus Wood Chips:

66283 Version : 4

HS Description : 060420


Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage


Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared.



OGD Extension : 004717


Foliage, branches – fresh – dyed, bleached or otherwise prepared


Foliage, branches – fresh – dyed, bleached or otherwise prepared – Eucalyptus

Origin : BR


South America (includes Central America)



End Use : 01


Other end uses

Recommendations to CBSA/Documentation and Registration Requirements

Approved No Permits Required as long as conditions outlined below are followed.

Importer / Broker Instructions


Material must be clean and free of pests and of soil. ADDITIONAL INSTRUCTIONS

*** It has been noted that border lookouts and targets take precedence over import requirements indicated in AIRS. – Any import inspection services provided by CFIA staff are subject to a CFIA user fee. – May be subject to requirements of Other Government Departments (federal, provincial, territorial or municipal). – Contact an Import Service Centre for further information. Submissions of ‘Request for Documentation Review’ form (CFIA/ACIA 5272): **Please note that there are specific instructions depending on method of declaration:

-Paper Declaration: ‘Request for Documentation Review’ form (CFIA/ACIA 5272) must be completed when providing a faxed package to the NISC. -Other Government Department (OGD) Pre-arrival Review System (PARS) / Release on Minimum Documentation (RMD) Declaration: ‘Request for Documentation Review’ form (CFIA/ACIA 5272) must be completed when providing a faxed package to the NISC. -Integrated Import Declaration (IID): ‘Request for Documentation Review’ form (CFIA/ACIA 5272) is only to be provided as part of the declaration if required by AIRS, under the Documentation and Registration Requirements section of AIRS.

Additional References

D-01-01 Phytosanitary Requirements to Prevent the Entry and Spread of Phytophthora ramorum Please refer to website http://www.inspection.gc.ca/plants/plant-protection/directives/horticulture/d-01-01/eng/1323825108375/1323825214385 to view the text of the directive. D-02-12 Import requirements of non-processed wood and other non-propagative wood products, except solid wood packaging material, from all areas other than the continental United States Please refer to website http://www.inspection.gc.ca/plants/plant-protection/directives/date/d-02-12/eng/1312383927173/1312384406559 to view the text of the directive. Plant Protection Act and Regulations To view the Plant Protection Act and Regulations, please refer to website http://www.inspection.gc.ca/english/reg/rege.shtml or contact the nearest Import Service Centre for further information.

Shipping Costs Full Container Load Via Ocean Service

1×20’ DV

From: Port Brazil

To: Port Canada

Shipping Rate $3000.00 USD


From: Port Brazil

To: Port Canada

Shipping Rate $3000.00 USD

Customs Clearance

Other Government Department Clearance Needed

Cost- $150.00 CAD Clearance cost does not include any duties or taxes which maybe applied by CBSA or other government departments.

Door Delivery- Depends on where the goods finale destination will

Example Port Halifax to GWD Forestry locations Full Container Delivery charge would be approximately $1500.00 CAD

Once shipping / cargo details are available we can provide an more detailed shipping rate.

The transit time is approx. 30-35 days on the ocean. If a reefer container is needed to maintain a certain temperature than this can been added for an additional charge of $800-900 USD on 1×20’ DV or $1500-1700 USD on 1×40’DV. Sailing are available on a weekly basis and a bi weekly basis depending on the port of departure.

The exporter and importer companies must register that they are conducting international trade with appropriate government departments. The exporter will have to register with parties in Brazil if not already registered for export in order to apply for certifications in Brazil.

The importer will have to setup an importer account number with Canada revenue agency in order to start importing into Canada.

Laws & Regulations in Brazil for Exporting Wood

Forestry Laws

Only Brazilian-based community associations, cooperatives and companies can participate in forest concessions. Forest managers and harvesting companies harvesting native species from planted forests must inform IBAMA or the state environment body in question about their commercial activities.

Forest managers and harvesting companies harvesting exotic species from planted forests need planting licenses before a planted forest is raised. The government body responsible for issuing such a permit varies according to size and location. IBAMA, Brazil’s environment agency, is the government body responsible for issuing licenses for cases such as areas shared by Brazil and a neighboring country, indigenous territories, conservation units within federal level, and where two or more Brazilian states are involved. State environment agencies are the issuing body in cases such as the area in question is located in more than one municipality or a conservation unit is under state-level administration.

Concessionaires must pay relevant fees to the government for exploring the forest, including social tributes, goods taxation, and environmental and labor duties and tributes. When harvesting from concessions in native forests, concessionaires must hold a concession contract. In addition, they must hold an approved Sustainable Forest Management Plan (Plano de Manejo Florestal Sustentável – PMFS), an approved Annual Operational Plan (Plano Operacional Anual – POA) and an Operating Authorization (Autorização de Exploração – AUTEX). Concessionaires must be on IBAMA’s technical register (Cadastro Técnico Federal). See Law No. 11.284 of 2006.

When harvesting from private lands in native forests, timber companies must hold land title documents (or leasehold). They must also hold an approved Sustainable Forest Management Plan (Plano de Manejo Florestal Sustentável – PMFS) and an approved Annual Operational Plan (Plano Operacional Anual – POA). See Decree No. 5975.

Anyone (land owner, leaseholder, or settler) harvesting timber from converted lands on native forests (private properties or land settlements) must hold a permit authorizing them to clear forest for alternative uses of the land, such as agriculture and cattle raising, and infrastructure construction. They need either an Autorização de Desmatamento or an Autorização para Supressão da Vegetação Alternativo do Solo. Individuals or companies must be on IBAMA’s technical register (Cadastro Técnico Florestal). In order to obtain land clearance authorizations, property owners must provide proof of land title.

For companies harvesting exotic species from planted forests, if the planted forest is not considered an area of permanent conservation, no previous permit for harvesting is needed. See Law No. 4.771 of 1965.

Processing/Manufacturing Laws

Companies involved in processing owe fees to the government in many cases, including social tributes, goods taxation, and environmental and labor duties and tributes. Processing companies must be on IBAMA’s technical register (Cadastro Técnico Florestal). IBAMA or a state environmental agency must issue a license before timber processing activities are carried out. The timber processing company must complete relevant sections of the DOF (Documento de Origem Florestal).

Trade Laws

Timber companies seeking to export timber from Brazil must provide the following:

  • • Importer registration (SISCOMEX code)
  • • Import claim
  • • Customs declaration
  • • Purchasing contract
  • • Purchasing order
  • • Legal transportation permits
  • Packing list
  • • Invoice

Products must go through one of the two customs declaration procedures available. A simplified declaration can be used when goods do not exceed $50,000 and a full customs declaration is used when exported goods exceed this value. The simplified declaration can be done online via the Sistema de Comércio Exterior – SISCOMEX (Foreign Trade System) or through paper forms (I have a sample to be included). The full customs declaration must be processed online via SISCOMEX.

CITES-listed species may only be exported from the following ports (see Normative Instruction No. 188 of 2008):

  • North region: Belém Port (PA)
  • South region: Paranaguá (PR), Itajaí (SC) and Uruguaiana (RS) Ports
  • • Southeast region: Santos (SP) and Vitória Ports

The exporting company must pay export tax (Imposto de Exportação, or IE).

Between October 2001 and June 2003, there was a full harvest and trade ban of Brazilian mahogany (Swietenia macrophylla King) in place. In 2003, the Brazilian government authorized the species to be harvested and traded again under the condition that it is extracted on the basis of sustainable forest management. In addition, the country has had a full log export ban for several decades. In 2005, Brazil partially changed its regulations, allowing the export of logs under two conditions: from forest plantations or sustainable forest management plans. Brazilian legislation no longer allows the harvest of any timber originating from the following trees: Brazil nut tree (Bertholletia excelsa), rubber tree (Hevea spp.), araucária (Araucaria angustifolia), native brazilwood/pernambuco (Caesalpinia echinata) and jacarandá/Brazilian rosewood (Dalbergia nigra).

Customs clearance is done by means of a Declaração de Exportação – DE (export declaration), which must be formalized with up to 48 hours prior to shipment by the local IBAMA unit. The following documents are needed for a DE to be issued:

1. Copy of the Registro de Exportação – RE (Export Registry) from the Sistema de Comércio Exterior – SISCOMEX (Foreign Trade System);

2. Copy of the nota fiscal (Invoice);

3. Packing list;

4. Transportation Authorization;

5. Export authorization for wood products and subproducts (e.g. CITES), as appropriate.

See Normative Instruction IBAMA No. 77, OF 2005.

Transport Laws

Companies transporting timber from native forests must carry a DOF (Documento de Origem Florestal), issued by IBAMA (Federal Environmental Agency) or a state equivalent, as well as a nota fiscal (invoice). The DOF is a computerized timber control system. It should contain information about the timber’s origin, species, type of product, quantity and value of the cargo, as well as detailed transportation route. Products and subproducts should be 14

accompanied by the relevant DOF from the originating timber yard up to customs terminal.

The DOF is not always required. Subproducts such as windows, doors and furniture, and cellulose and wood paste, for example, are exempt. Some states have their own transportation licenses, which are integrated with the DOF system. These states are Mato Grosso, Pará and Rondônia (Guia Florestal – GF) and Minas Gerais (Guia de Controle Ambiental – GCA).

The DOF is issued with an expiration date: 5 days for state road transportation, 10 days for interstate road transportation and 30 days for logs being transported by rafts. Companies transporting exotic species from planted forests must carry a nota fiscal (invoice).

See DOF Manual.

Tax Laws

Concessionaires must pay relevant fees to the government for exploring the forest. Timber companies must pay the following fees to the government: social tributes, goods taxes, environmental and labor duties and tributes. The exporting company should pay export tax (imposto de exportação, or IE).

CITES Agreement Information

CITES is an international agreement among governments whose purpose is to ensure that international trade in wild animals and plant species does not threaten the survival of these species. 175 countries have agreed to be bound by CITES, which is a binding legal agreement. It is up to each Party to CITES to draft its own domestic legislation in order to comply with its CITES obligations. Brazil acceded to the Convention in 1975.

Six commercially traded tree species that grow in Brazil are currently listed on one of the three CITES appendices, and require additional valid documentation in order to be legally traded out of Brazil. For more information about how CITES works, see the official website of the Convention.

IBAMA has some helpful information about obtaining CITES permits at its website (Portuguese only). IBAMA also offers a “quick verify” service here, so that anyone interested in trading CITES-listed timber species can quickly check to see whether the license is valid.

A full contact list for official Brazilian CITES authorities, including Management Authorities competent to grant permits is available on the CITES website.