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Expanding Export Markets for U.S. Softwood Products

Helping industry organizations establish and grow sales around the world 

Progress in Korean Grade Negotiations

 
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As last reported on the Korean Forest Research Institute’s (KFRI) effort in developing its own lumber grading system and requiring lumber imports to S. Korea to meet its proprietary grading stamp, progress has been made to find an alternative solution to the requirement. Also since the last report, the Korean Forest Research Institute has changed its name to NIFoS, the National Institute of Forest Science.

The implementation of Korea's grading standard is on hold until the General Assembly of Korea approves an amendment to the law allowing the Korean Lumber Standard, most likely in the beginning of 2017.  NIFoS has also confirmed the acceptance of North American structural lumber on an equivalent design value basis to the Korean Standard's three structural grades, provided our grades exceed the established properties of Korean grades. Pending their review of the specific grade requirements, NIFoS indicated their willingness to include a table recognizing three appearance grades for each grade rule agency that are equivalent to the three appearance grades in the Korean Standard. 

NIFoS had previously included only WWPA C Select, No2 Com, and No.3 Com as acceptable, to the exclusion of other species and rules. NIFoS confirmed, in the case of both structural and appearance grade lumber, that the requirements to label each piece in Korean, and to the appropriate Korean grade, will be the responsibility of the importer. The trade-off will be a the necessary provision of information to the importer regarding the equivalent Korean grade. It is unclear how this will manifest in the end, but discussion to date includes use of bundle tags or supplemental paperwork, etc. 

A remaining unresolved item deals with the proposed Korean Lumber Standard being considered by the Korean General Assembly. It establishes parameters recognizing a foreign inspection institute or body (FQII). NIFoS indicated the Korean Forest Service's (KFS) position remains that ALSC or CSLAB (Canada) will not qualify as FQIIs, but that each accredited agency would be eligible to apply. However, NIFoS also noted that the amendment, if passed, would allow their input beyond that of KFS, and they agreed that recognition of accredited agencies through ALSC or CLSAB provided a much simpler solution than dealing with all the individual agencies.

NIFoS indicated they would continue to provide any further information they receive and noted they understood the reasons expressed by ALSC and CLSAB for recognition of the systems in whole. 

For more information on this issue, please contact SEC.

Reverse Trade Mission: China visits the West Coast

 
As China's economy continues to struggle, it becomes increasingly important to create ties with wood industry representatives in the East in order to understand their perspective on the downturn and the opportunities for growth during a strained period of trade. This is precisely why three Chinese delegates traveled to Los Angeles this March to participate in Western Wood Product Association's annual meeting, providing insight into the Chinese economy's impact on wood imports. 

During their trip, the delegates (alongside a Chinese reporter) were able to visit Portland, where they toured four U.S. construction sites, each exemplary models of softwood construction that highlight the structural integrity and interior beauty of U.S. softwoods:
  1. Clay Creative  72,000 square feet and six-stories tall, this wood-framed office building is built with timber beams, glulam, and flooring assemblies and expected to achieve LEED Platinum standards, becoming one of the most energy efficient buildings in Portland's central east side.
  2. One North A two-building project surrounding 14,000 square feet of courtyard space, One North features a cedar-paneled exterior, interior Douglas Fir beams and columns, light-frame dimension lumber walls, and timber decking. 
  3. Albina Yard This office space is the first example of domestically fabricated CLT used in a building-wide structural system in the United States! The CLT panel floors were installed on site in under three hours and allow the structure to span longer distances with fewer beams.
  4. The Hudson (Vancouver, WA) With its heavy timber structure and 15' high ceilings, each room in The Hudson has a unique floor plan that alludes to the open warehouse spaces that predominated the area in the early 1900s. 

After touring Columbia Vista and Sierra Pacific Industries in Aberdeen, WA the next day, our Chinese visitors  have a better understanding about our West coast softwood lumber species, their availability, and production. 

Softwoods in Interiors: A Highlight of Green Building

 
Leading the charge in market education overseas, Brian Court of Seattle-based Miller Hull has given seminars in Guadalajara and Beijing on Green Building during August and October, using the award-winning design for the Bullitt Center as a case study. In addition to a waterless composting toilet system, rainwater harvesting system, and rooftop solar panels that yield an annual net zero energy use, the six-story office building features warm softwood interiors made up of glu-lam Doug Fir columns and beams. 
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Court mixes materials for the most effective structure and exposes the lumber frame not only to save on materials and time, but also for the texture and richness that wood visually provides within the space. The natural finish is an expressive element of the building's design, and resonates with tenants: surveys from employees working in the Bullitt Center report that the number one most-loved aspect of the building is the exposed wood, a critical component that brings life to the workplace during the Pacific Northwest's long, gray winters. "There is a movement where spaces are more flexible, fluid, less prescribed--timber is an element of that," explains Court, "it resonates with people on a primal, emotional level."

Updating China's Building Codes

 
Chinese regulations for wooden structures are dictated by the GB50005, which lists the recognized wood products permitted for construction. Currently, the Chinese Timber Code Committee staff is working on an updated version of this code after ten years since the last edition, incorporating grades and species from the U.S., Canada, and Europe. Kevin Cheung has made a submission to the Committee to incorporate the reliability-compliant design values for North American NGR dimension lumber, MSR lumber, and Structural Timbers. By including these values in Chinese standards, we create opportunities for increasing the use of North American lumber products in China--a country that is already the largest softwood trading partner of the U.S. (not including Canada), with a housing start exceeding 10 million a year and a new commitment to increasing wood construction in official buildings.

Tools of the Trade

 
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The government is planning to streamline the import/export process with a new International Trade Data System, launching on November 1, 2015. The system aims to save time and paper with an electronic database that will afford agencies access to shipment data and allow them to submit documentation to easily comply with Customs and Border Protection. Since that crucial information is currently only in hardcopy, ITDS will expedite communication between CBP and agencies, and better ensure security of cargo. There are plenty of educational webinars and workshops to learn more.  

Grey Area in Korean Exports

 
At the start of 2016, the Korean Research Forestry Institute will begin using a new standard in lumber grading, affecting acceptable trade with Korea. Their Notification on Sawn Lumber has only three grades and requires all labels and grade marks to be in Korean (labels with both Korean and English are acceptable). The regulations are complex, and time is limited to negotiate with officials. While Korea's existing lumber standard recognizes U.S. grades via equivalence with all North American softwood, KRFI has yet to agree to publicly recognize our American Lumber Standard Committee, though they are working toward recognizing the Canadian Lumber Standard Accreditation Board. As we work with Korea government, we encourage you to reach out to your own importers in Korea to see what impact this will have on their trade with the U.S. Please share any difficulties your encounter with SEC so we may inform the U.S. Trade Representative. 

We will have more information as we investigate the new standard, and update our members as we post on the topic. Notification information courtesy of Kevin Chueng.
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