Major World Powers Move To Implement ISPM-15

For a number of years, major world powers have been talking about implementing new standards to prevent the spread of wood pests around the globe via solid wood packaging material (SWPM). The talk appears to be over as several major world powers have already implemented or announced their plans to enact ISPM-15, the voluntary standard developed under the International Plant Protection Convention (IPPC).

                      Even after the IPPC developed the standard in 2002, international governments debated additional measures and kept pushing back implementation dates. A dispute over the copyright of the no-bug logo forced the IPPC to postpone the standard while it developed a new mark. All of this led to stops and starts, which discouraged many in the forest products industry. Now, IPSM-15 seems to be marching quickly toward widespread global implementation. Look for most major international markets to be using the standard by sometime next year. Many are already looking for the IPSM-15 logo.

                      If you haven’t developed a strategy to deal with this issue by now, you may be in danger of losing customers to companies that have. Compliance alternatives include heat treatment or methyl bromide fumigation by an officially certified company.

                      Many pallet companies have reported that heat treatment has become a fairly profitable service to offer customers. As with most "new" services in this industry, the early providers tend to make the most money. Once too many companies begin to offer treatment services, market dynamics will likely force prices down and erode margins. There will probably come a time when customers will just expect export treatment as a free service. Smart companies are getting in on the action early to get the return on their equipment investment now.

The European Union

                      The EU implemented the global phytosanitary standard (ISPM-15) "as is" on March 1, 2005 for solid wood packaging, including pallets, dunnage and crates. The EU became the first major economic trading bloc to enact the voluntary standard.

                      The EU has agreed to delay for one year until March 1, 2006 the debarking requirement that it was considering adding to ISPM-15. This will give the EU time to develop additional scientific justification for the requirement while avoiding a major trade dispute in the process.

                      According to Roddie Burgess, the head of plant health for Great Britain’s Forestry Commission, all solid wood packaging material, regardless of origin, entering the EU from any other country (except Switzerland) must be ISPM 15 compliant and marked as of March 1, 2005. Solid wood packaging that is manufactured before February 28, 2005 does not have to carry the IPPC logo as part of the mark until January 1, 2008.

                      Concerned about the possibility of infestation posed by treated wood packaging material with bark on it, especially packaging coming from third world countries, the EU originally proposed requiring that all solid wood packaging material sent to the EU be made from debarked wood. The possibility of including a debarking requirement prompted international debate between the EU and its major trading partners, such as the United States. These major trading partners claimed the debarking requirement was unnecessary, amounted to a trade barrier and jeopardized the harmony that the new international standard was designed to create.

                      Markos Kyprianou, Commissioner for the Health and Consumer Protection – European Commission, said, "This compromise is a win-win situation, allowing the EU to implement significantly strengthened rules now, while also allowing our trading partners enough time to adjust to the stricter measures envisioned for the future."

U.S. Implementation

                      The U.S. has announced its final rule for implementing ISPM-15. The measure will take effect September 16, 2005, which gives exporters several months to prepare for enforcement. The U.S. government will implement the standard as it was developed by the International Plant Protection Convention (IPPC).

                      Wood packaging material less than 6 mm (0.24 inches) thick in any dimension is excluded from the IPPC requirements. Each piece of dunnage must be marked to be accredited according to the U.S. program.

                      All countries exporting products to the U.S. will have to comply except Canada. The similarity between the U.S. and Canada in their forest ecosystems, pest structures and quarantine procedures has led to this exception.

                      Once strict enforcement begins, packaging that does not comply will be stopped at the border and re-exported. The U.S. government will not allow non-compliant packaging to be treated at the port of entry.

Mexico

                      Mexico will be adopting the standard "as is" and will be harmonizing its implementation schedule with both the U.S. and Canada.

China Wants Longer Fumigation Times

                      China has announced its intention to implement ISPM-15 while requiring additional treatment for coniferous wood packaging from countries known to have problems with the pinewood nematode. This includes the U.S., Canada, Japan, Mexico, South Korea, Portugal, and Taiwan.

                      China is keeping the same treatment schedule as required under ISPM-15 for heat treatment. But it is requiring longer treatment time for methyl bromide fumigation of coniferous wood packaging from the countries listed above.

                      China will begin enforcing its rule starting January 1, 2006. In the interim, shippers can use either the existing rules or the new requirements. See Figure 1 and Figure 2 for details on China’s new methyl bromide fumigation requirements.

Looking at the Future!

                      Government leaders met in February of this year at the International Forestry Quarantine Research Group (IFQRP) to discuss implementation of new phytosanitary standards. Most progressive countries appear to be on track while many third world countries continue to struggle to meet foreign import regulations.

                      The IPPC is set to re-examine the global standard for SWPM in 2007. Researchers are actively working on new treatment methods and possible changes to existing ones. Leaders at the IFQRP meeting agreed that the IPPC should increase the treatment time for methyl bromide fumigation to 24 hours. This will "facilitate penetration of the gas and ensure that adequate concentrations of the fumigant are maintained during the duration of treatment," according to the United Nations.

                      Many pallet users have decided to switch to all export compliant packaging because they don’t want to risk having a shipment stopped at a border or do not know where a load is headed when it is palletized. Instead of keeping two inventories of pallets, many users have decided to treat everything. This is especially true for companies with a significant amount of international shipments or fairly expensive products under load.

                      Demand for treated pallets has begun to pick up, and most pallet companies have been able to command a decent fee for the service.

                      Some companies have opted for alternatives to wood, but wood pallets remains a viable, cost effective option in most cases.

                      The phytosanitary issue has required pallet companies to become more informed, keep better records and overall improve service to customers. While the letters "IPPC" may give some pallet companies a headache, it has become a good business opportunity for others. Visit www.palletenterprise.com/pests for more information on the phytosanitary issues or to learn how you can become certified or obtain treatment equipment and machinery.