Wood Import: How Much Budget Do You Need?

Startup with a wood business – a fertile but equally challenging market, always makes many people wonder about the amount of money to start. From African hardwoods, softwoods, mid-range or high-end woods, the opportunities to participate and develop are unlimited. This article K-TIMBER will provide the minimum cost as well as necessary information for the question “How much to invest to import wood”

Introduction to the imported hardwood market

The hardwood import market from Africa, with over 5,000 types of precious woods such as Mussivi, Padauk, Sapele, and Blackwood from wealthy countries like Angola, Cameroon, and Gabon, is not only diverse in types but also rich in supply. In 2022 and 2023, Africa is estimated to export $10.5 billion worth of hardwood to Japan, Vietnam, Germany, Spain and the US. Specifically, Japan imported 2.5 billion USD, Vietnam 2 billion USD, while Germany and Spain both imported 3 billion USD, and the US also imported wood worth 3 billion USD.

Budget and related legal and administrative procedures

Legal and regulatory requirements

To know the exact “wood purchase budget”, below are the legal requirements and regulations for importing wood from Africa to the US, Europe, and Asia, along with specific data and applicable costs:

America

• Import Permit: USDA/APHIS requires a timber import permit, using PPQ Form 585​​.
• HTS code: It is necessary to determine the correct HTS code to apply the appropriate import tax rate, possibly tax exemption for some products.
• Cost: Specifically depends on the type of wood, size, weight and origin, about $12,000 – $14,000 for mid-range wood types.

Europe

• FLEGT documents: For countries that have a Voluntary Partnership Agreement (VPA) with the EU, FLEGT documents are required to prove that imported wood is harvested sustainably and legally.
• EUTR Regulations: Businesses importing timber into the EU must comply with the EU Timber Trade Regulations (EUTR), including carrying out risk assessments and applying risk reduction measures.
• Cost: Costs will be associated with EUTR compliance and may require FLEGT documentation, depending on wood origin, approximately $12,000 – $14,000 for mid-range wood species

Asia

• Regulations and documentation: Asian countries such as China, Japan and South Korea apply different regulations and documentation requirements, often requiring quarantine documentation and certification of timber legality.
• Trade agreements: Free trade agreements (FTAs) between Asian countries and exporting countries can affect the level of import tariffs applied to wood.
• Cost: about $12,000 – $14,000 for mid-range woods.

Estimate the cost of importing wood for beginners

Currently, with regulations for exporting wood from Africa, suppliers often set a minimum of 25m3 per shipment. This poses an important first step for K-TIMBER in planning import costs for the two most popular wood species: iroko and sapele

The cost estimate table for importing 25m3 of Iroko and Sapele wood shows the total cost, which is from $14,000 to $18,400. This is the minimum price, not including additional costs, and is important information to help businesses make financial plans and price products after import.

K-TIMBER – TOP #1 WOOD SUPPLIER IN AFRICA

K-TIMBER, an esteemed wood exporter based in Angola, Africa, has carved a niche in the global wood market with its extensive experience and broad network, serving over 30 countries, including a significant presence in Europe. The company is renowned for its diverse range of high-quality woods such as Doussie, Mussivi, Iroko, Sapele, Pachyloba, and Eucalyptus, ensuring a product quality ratio of up to 90%. With a commitment to the highest standards, including adherence to FAS criteria, K-TIMBER’s offerings stand out for their durability, quality, and aesthetic appeal.

Boasting a robust supply capability of up to 20,000 m3 of wood monthly, supported by five advanced sawmills in Angola, K-TIMBER efficiently meets large-scale demands without compromising on quality. The firm’s solid relationship with the Angolan government ensures a consistent supply of premium wood and streamlined export operations. Moreover, K-TIMBER’s dedication to sustainable forestry practices underscores its commitment to environmental stewardship, emphasizing responsible wood harvesting techniques.

Contact information:

• ADDRESS VIET NAM (K-TIMBER): 169 Nguyen Ngoc Vu street, Cau Giay District, Hanoi.
• Phone: (+84) 833333914
• Email: [email protected]