IPÉ IN STOCK... FOR NOW

------------ BY DAVID KOENIG

SIX MONTHS ago, CITES (the Convention on International Trade in Endangered Species of Wild Fauna & Flora) voted to add the South American hardwoods ipé and cumaru to its list of protected species. Some suppliers are warning that the ruling will tighten supply and increase prices of imports made with the tropical species.

So far, there appears to have been little immediate change. Several of the leading suppliers of ipé—including Redwood Empire, J. Gibson McIlvain, and Tropical Forest Products—say the new CITES requirements should integrate seamlessly into their current third-party certification systems.

Ipé and cumaru were added to CITES’ Appendix II list of potentially

RECENT CITES RULING MAY IMPACT SUPPLY, PRICE IN THE FUTURE

threatened species, not its Appendix I list of critically endangered species. Appendix II species are not considered endangered, but rather “in danger of becoming endangered,” and can continue to be harvested, exported and sold under certain conditions.

The idea is to place controls over their trade so they don’t become over-utilized to the point that they one day do become endangered.

Most noticeably, the ruling will result in an extra layer of paperwork: an export permit. This is in addition to current requirements to meet the Lacey Act.

“We do expect that this additional documentation could cause some delays in export,” notes Shannon Rogers, J. Gibson McIlvain. “Expect this to cause shortages in supply here in North America. Ultimately, it is a question of whether or not a bottleneck will slow things down. Brazil has stated they will be requiring on-site inspections of export material in order for the permit to be issued. Depending on the size of that inspection team, this could cause a significant delay.”

CITES’ implementation deadline is 24 months—the requirements don’t take effect until the end of next year. However, Brazil—the leading source of ipé—intended to start requiring CITES permits by July 1, 2023.

Redwood Empire’s buyer in Brazil was doubtful the Brazilian Forestry Ministry had the ability to speed up issuing of certificates that quickly. Currently, Brazil requires CITES permits for only two species—cedar and mahogany—and issuing them can take months.

“The concern is the processing time,” says Redwood Empire’s Sean Burch. “I think there is a enough ipé stateside to handle this season’s demand and to stay ahead of delays.”

If this were a decade earlier, when ipé burst onto the American decking scene, the new requirements may have had a bigger effect. But sales volumes are now such that suppliers like Redwood Empire have been able to maintain sufficient inventories. “The footprint is smaller, due to its price and alternative species,” Burch explains.

The reality is that neither ipé nor cumaru are scarce—a state the new regulations were intended to make sure continue. MM