BUSINESS MATTERS
By Michael Raine
What Do the New CITES Rosewood Restrictions Mean for MI Retailers ?
As the cliché goes , even the most well intentioned rules and regulations have unintended consequences . And so it is that the MI industry has become collateral damage in an international effort to protect forests from the Chinese furniture industry . On Jan . 2 , 2017 , a new Convention of International Trade of Endangered Species of Flora and Fauna ( CITES ) regulation came into effect that restricts the exporting and importing of nearly all species of rosewood that are used in the making of guitars and other instruments . For MI dealers and manufacturers , this means more headaches , paperwork , and permit applications are in store in order to sell and ship instruments across international borders .
What Is CITES & Why the New Rules ?
CITES is an international agreement in place since 1975 that is meant to protect threatened and endangered plant species by regulating their trade . Brazilian rosewood was already under CITES protection for several years , but under the new CITES Appendix II that was agreed on by signatory countries ( which include Canada , the U . S ., and most other major markets ) in October 2016 and that came into effect this January , all rosewood under the genus dalbergia and three bubinga species are now covered by the regulation . This includes over 300 species of rosewood , including East Indian and Honduran rosewood , as well as woods like cocobolo and African blackwood that are commonly used in stringed instruments , marimbas , and woodwind instruments . In layman ’ s terms , this means almost all rosewood used in the making of guitars and other musical instruments needs to be certified and accompanied by a permit in order to cross a border .
The reason that the trade of rosewood has come under greater scrutiny is not because of musical instruments , but because of the Chinese high-end furniture market . This industry has created a demand for rosewood worth billions of dollars , which has led to deforestation and the endangerment of several rosewood species in countries like Vietnam and Thailand .
What Does this Mean for you ?
Well , in short , if your business hasn ’ t gotten ahead of these new rules , get ready for a fair bit of paperwork and a lot of patience . “ Let go of some leisure activities for the weekend ,” laughs Paul Haggis , co-owner of
Bluedog Guitars in Vancouver , who has recently gone through the process of obtaining CITES permits for his inventory .
A certificate confirming its legality and specifications must now accompany any guitar or other rosewood-containing product that crosses the border for commercial purposes . If you ’ re a Canadian dealer or distributor selling a U . S . -made guitar to a customer in the U . S ., for example , that guitar must now be accompanied by a re-export CITES permit issued by Environment Canada . A certificate , likewise , must accompany a Canadian-made guitar being sold to a customer in the U . S . Essentially , the only exceptions are products for personal use . For example , a musician crossing the border with his or her own guitar doesn ’ t need a permit ( unless it contains more than 10 kg of regulated wood ).
Haggis and his business partner , Jenn Ladd , received some warning and information about the impending regulation before Christmas from some of their suppliers , including Taylor and Bedell Guitars , as well as from NAMM , Haggis says .
“ Taylor [ Guitars ] has really been
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CANADIAN MUSIC TRADE