Furniture exporters express worries as new crisis looms

CEBU, Philippines - Another crisis looms for the country’s furniture makers if the Department of Environment and Natural Resources (DENR) will not make immediate action towards critical issues hounding the sector.

Apart from the market slowdown brought about by the crisis in Europe, the Philippine Exporters Confederation Inc., (PhilExport) has it that the stringent requirements imposed by European countries on the entry of furniture products will cause another problem for the exporters.

The PhilExport has already sought the help of the DENR Forest Management Bureau (FMB), particularly on the growing industry concern on three major issues; the obsolete log import policy under DAO 99-46; the equally hard system of documenting and transporting locally-harvested plantation trees; and the EU requirement of certification on sustainable sourcing which takes effect next month.

A report from PhilExport stated that a recent letter from DENR-FMB chief Ricardo Calderon said that his office is now revising DAO 99-46. The amendments are supposed to support and strengthen the country’s position on the legality issues under the Lacey Act of the United States, the “due diligence” policy of the EU member states and the illegal logging Act of Australia.

If not addressed immediately, PhilExport said more furniture companies may close down or slow down their operations.

The said laws prohibit the entry of wood-based products such as lumber, wood-based furniture and handicrafts and other wood-based manufactured articles to these countries if the wood used in the production or manufacturing cannot be traced back from its legal sources.

The same traceability requirements were imposed by the DENR on plantation of wood like Philippine mahogany, gemilina, and other trees cultivated in private plantations across the Philippines that were not included in the log ban.

The PhilExport report further said that this was done through the issuance by community environment offices of DENR in the cutting and transport permits of plantation trees. Furniture makers however, complained that the legally-documented timber were subjects of harassment by police and environment officials when moved to their factories.

In the report, PhilExport said that Calderon on the other hand forwarded a list of regional directors of DENR and their contact number who have been ordered to act on complaints against harassment of this type.

Calderon further clarified that DENR could not issue certifications on the traceability of locally-cut plantation timber because the importing countries require third party certifying bodies.

In a recent dialogue with representatives from EU, the furniture exporters were told to consult their buying partners on what precise documents are required.

Under EU’s traceability rules, the importers will have to responsibility to prove that the products they buy are from legal and sustainable sources.

Locally, proof of legal sources could also be ascertained by DENR permits to cut and to transport plantation species, said Calderon.

Meanwhile, European Chamber of Commerce in the Philippines (ECCP) executive vice president Henry J. Schumacher expressed confidence that the furniture exports in the Philippines is continually gain interest from the European market, if it were to adopt sustainable and green operational system.

According to Schumacher, Cebu exporters’ practice in green and sustainable operations provided them “immunity” to crisis stricken markets like Europe, as market continues to grow demanding for high-end and green products.

Schumacher reiterated that the huge European market is still there, however, he warned that exporters will have to see where the market is heading. And introducing a certified eco-design is one of the effective niches the Philippines should take.  (FREEMAN)