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Offshore Markets' News, April 1998
A Periodic Newsletter of the Markets/Trade Division Council of Forest Industries
Vol. 2 No. One
The Markets/Trade Division thanks its partners and members - the forest products producers and industry associations of BC and Alberta. Articles may be reprinted - please credit the Markets/Trade Division. COFI does not warranty the accuracy of any of the information contained herein.
INSIDE
Tariff Reduction on "Pre-Drilled" Lumber
Japanese Customs has notified COFI regarding a tariff ruling on pre-drilled dimension lumber. Pre-drilled random length dimension lumber will fall into the tariff code HS 4418.90-229 which carries a tariff rate of 3.9 %. This compares to a tariff rate of 5.4 percent for SPF dimension lumber. The tariff ruling is not limited to studs and applies equally to all dimension lumber which is clearly marked as pre-drilled dimension lumber. The ruling is based on a hole that is at least 18 inches from the end and at least 18 mm in diameter. Info: John Powles, COFI or Edward Matsuyama, COFI Tokyo
Acceptance of Horizontally Applied Plywood Sheathing - The Japanese Ministry of Construction (MOC) issued a Ministerial Approval for horizontally applied plywood without blocking for platform frame construction (2x4). Acceptance was the result of long-term lobbying efforts by COFI/CanPly. The applicable multiplier for horizontally applied plywood without blocking will be 1.5. In addition, reference on the application of the sheathing will be shown in the Government Housing Loan Corporation manual and the Platform Frame Construction Design manual. Info: Art Kempthorne, CanPly or Hidehiko Fumoto, COFI Tokyo
Relaxation on Wooden Apartments in Quasi-Fire Protection Zones - The Japanese Ministry of Construction submitted the Building Standard Law revisions to the Japanese Diet on March 17, 1998. If passed by the Diet, there would be provisions for 3-storey wooden apartments in quasi-fire protection zones, which make up 16 percent of land designated for building in Japan, as early as July 1999. In Tokyo, this would amount to 73 percent of designated building area. Info: John Powles, COFI or Hidehiko Fumoto, COFI Tokyo
Recognition of Hem-Fir (N) - Japanese Government Housing Loan Corporation (GHLC) authorities have agreed to insert design values of Hem-Fir (N) in the new GHLC manual which will be released in mid-April 1998. Special recognition was obtained for Canadian Hem-Fir on August 25, 1997. Design values for Hem-Fir from Canada are now considerably higher than that of US or JAS Hem-Fir. Similarly, the new Platform Frame Construction Structural Design manual will make similar reference to Hem-Fir (N). Joint technical seminars by COFI Tokyo, GHLC and the 2x4 Association are being scheduled in mid-April 1998 to explain changes in design values and span tables for all species. Info: Ken McKeen, COFI or Edward Matsuyama, COFI Tokyo
MOC Accepts NLGA Finger Joining Standard - The Japanese Ministry of Construction (MOC) announced that, effective April 28, 1998, the NLGA Special Product Standards SPS 1 and SPS3 for finger joined lumber will be accepted as equivalent to the JAS 701 Standard. This means that dimension lumber that has been finger joined to the NLGA standard and carries a COFI member association gradestamp will be fully accepted under the 2x4 Building Code (Notification 56). Prior to this decision, only JAS certified finger joined lumber could be used. Info: Ken McKeen, COFI
Revision of JAS 143 Standard - The Japanese Ministry of Agriculture, Forests and Fisheries (MOAFF) has started a formal revision of the JAS 143 standard (softwood lumber standard for post and beam construction). COFI is represented on the committee and has been addressing concerns dealing with the evaluation of knots, wane and sizes. Info: Ken McKeen, COFI or Hidehiko Fumoto, COFI Tokyo
Japan Tariff Reductions - The fourth phase of the Uruguay tariff reductions was implemented on January 1, 1998. Some of the reductions involve: Dressed SPF lumber under 160 mm - 5.9 to 5.4%; Rough Spruce/Fir lumber under 160mm - 5.3 to 5.0%; Softwood plywood over 6mm - 7.5 to 6.8%; Laminated Lumber - 8.9 to 7.8%; Glue lam - Unchanged at 3.9%. Info: John Powles, COFI or Edward Matsuyama, COFI Tokyo
Daiwa House Drops Formaldehyde - Daiwa House has become the first of Japan's homebuilders to start using materials containing little or no formaldehyde.
Since last month, the company has been using building materials that emit little formaldehyde, for its frames and foundations as well as for finishing materials.
The use of formaldehyde-free materials has no effect on prices charged by Daiwa House, the company said.
Environmental Advantages of Wood - The Canadian Wood Council (Forintek Athena project) brochure explaining the environmental advantages of wood construction versus steel and concrete was summarized into Japanese and released to coincide with the Kyoto global warming conference in late 1997. These brochures have proven to be very popular as close to 5,000 brochures were distributed in less than 2 months to house builders, architects, distributors and specifiers. Info: John Powles, COFI or Edward Matsuyama, COFI Tokyo
Low Formaldehyde Release Attributes of CanPly Plywood Attracts Attention - Despite a soft plywood market, CanPly plywood promotion program continues to maintain a high level of inquiries for CanPly plywood from builders, distributors and architects. House Japan, a joint industry/government housing organization in Tokyo, recently featured COFI FLOOR in it's environmentally safe house project. A total of 20 seminars on CanPly plywood for builders and distributors are planned for 1998 with participation in select trade shows. Info: Glen Shimizu, CanPly Tokyo
JAS Graded Volumes Down Marginally in 1997 - Volumes of JAS graded dimension lumber and plywood were down slightly but volumes of traditional lumber and laminated lumber were up in 1997. The reductions were due to a decrease in 1997 housing starts.
| |
1997 |
1996 |
| JAS 600 |
252,939 |
301,836 |
| JAS 600 CCA |
2,734 |
3,768 |
| JAS 143 |
0 |
0 |
| JAS 143 CCA |
8,898 |
4,053 |
| JAS 701 |
1,017 |
2,020 |
| JAS 111 |
1,184 |
0 |
| Plywood |
213,179 |
268,047 |
Current GHLC Mortgage Rate - THE GHLC has reduced their mortgage rates from 3% to 2.75% effective April 8. This was done with hopes of stimulating the housing market.
Bankruptcies Plague Japan - Tanamachi Komuten went under earlier this month as they had debts of C$40 million. They were purchasing SPF and CSP for 100 housing units per year. Another casualty was Heavy Timber (magazine), whose debts were approximately C$700,000.
COFI Tokyo has been advised by Rinzai that approximately 10 precut plants (mostly P&B) have gone under in the last few months. Info: Edward Matsuyama, COFI Tokyo
Wood Tariffs Reduced in Philippines - Effective January 21, 1998 the Philippines cut tariffs on wood products. All products under HS4403 - Wood in the Rough - tariff rates have been cut from 3% to 0. Tariffs for products under HS4408 - Veneer Sheets and Sheets for Plywood have been cut from 20% to 15% and HS4412 - Plywood and Veneered Panels, tariffs were reduced from 30% to 25%. All other lumber products under HS4407 will be dropped from 20% to 15% other then softwood lumber (HS4407.10) which was cut from20% to 3% last October.
Harmonization of European Standards - Publication by the European Commission, of the Mandates for solid wood timber and wood-based panels (see report, 24 July 1997) set out the requirements for harmonization of the European Standards, ENs. Harmonized Product Standards for various product groups can now be developed.
The harmonized product standards will include an annex listing all the mandatory clauses of the supporting standards, i.e. the harmonised content, which will need to be satisfied in order to meet the requirements of the Construction Products Directive. Structural timber will need to include, in addition to the CE mark, and MoE. Stamping with the strength class and 'EN 338' will provide one means of conveying this information.
The harmonized product standard for 'Structural timber is expected in two to three years after which CE marking will be a requirement for structural timber products entering the EU. Info: Ken McKeen, COFI or John Park, COFI London
Energy Efficiency in Construction - The UK Government announced, in February, the start of a comprehensive review of Part L of the Building Regulations dealing with energy efficiency in construction. The review is aiming to maximise the contribution that can be made to the Government's target for Carbon Dioxide reduction through the Building Regulations. Timber frame construction is the logical solution but the blockwork lobby is well entrenched, with the partisan support of the House Builders Federation.
The energy efficiency inherent in timber frame construction was one of the aspects of the system that resulted in a competition winning submission for the construction of the Greenwich Millennium Village project in London. Deputy Prime Minister John Prescott described it as "......the way the construction industry can work in the future. It sets world-leading performance standards for efficiency in construction". Info: John Park, COFI London
Wood and Fire - Much resistance to timber in buildings in the UK is the result of the attitude to wood and fire. On many and especially larger contracts building insurers follow guidance published by the Loss Prevention Council. The preference within this guidance for non-combustible steel and concrete combined with the misunderstanding of the performance of wood in fire has resulted in the avoidance of timber in many areas of construction.
A recent change in attitude as a result of lobbying by the British Wood Preserving and Damp Proofing Association has led to full scale fire tests, by the LPC, of walls and ceilings lined with flame retardant treated wood. The successful outcome of the tests is likely to see flame retardant treated timber becoming fully acceptable to insurers in constructional uses.
Green Claims Code - B&Q and Sainsbury's Homebase have announced their support for a recently launched UK government 'Green Claims Code'. The code already criticized by environmental groups has no legally binding powers. The intention is to remove from products any misleading environmental claim that cannot be supported by scientific evidence capable of being independently verified. 'Environmentally friendly' will no longer be acceptable but 'Recycled paper which made up 41.4% of the raw material for UK newspapers in the first half of 1997' will. This statement appears on every national daily newspaper in the UK - every day! There seems to be no desire to tell the readership where the rest came from as if it is not worthy of mention. The myth of the paramount importance of recycling is perpetuated. Info: John Powles, COFI or John Park, COFI London
IKEA - The Swedish home furnishing company, has teamed up with the largest Swedish builder to launch a pilot scheme in which shoppers can order 'off-the-shelf' houses as well as the furniture to go in them. There are currently 2,000 people on the waiting list for the houses, which are supplied with electrical and plumbing fittings already installed in the walls. If the scheme is successful in Sweden the company may introduce the idea into the UK, their second largest European market. Info: John Park, COFI London
COFI Contacts:
| Vancouver |
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Phone: 604-684-0211
Fax: 604-687-4930 |
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| CanPly |
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| Tokyo |
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Phone: 813-5401-0531
Fax: 813-5401-0538 |
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| U.K. |
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Phone: 44-1252-522-545
Fax: 44-1252-522-546 |
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This document is also available in hard copy newsletter format to members and associates of the Council of Forest Industries (COFI).
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