The Australian Forest Products Association said Russian timber is entering the country through third-country exporters to avoid government tariffs.
This evasion threatens the viability of domestic timber producers who cannot compete with the lower prices of diverted Russian materials. If the loopholes remain open, local industries face displacement by cheaper imports that bypass legal sanctions.
Australia has maintained a 35 percent [1] tariff on Russian goods, including timber, since February 2022 [1]. This measure was implemented following Russia’s invasion of Ukraine to discourage trade with the nation. However, the AFPA said that the current system is being exploited through rerouting.
Industry representatives said that Russian timber is being shipped to third-party nations and then exported to Australia. This process allows the wood to enter the market without the 35 percent [1] penalty, effectively neutralizing the impact of the trade restriction.
To combat this, the AFPA is calling for the government to implement tariffs on any timber containing Russian material, regardless of the country of export. The association also requested stricter border checks to verify the origin of imports, and ensure compliance with trade laws.
The group said these measures are necessary to protect the domestic market from being flooded by materials that should be legally restricted. Without these changes, the industry warns that Australian-produced timber will continue to be pushed out of the market by circumvented Russian supply.
“Russian timber is entering the country through third-country exporters to avoid government tariffs.”
The situation highlights a common challenge in international sanctions, where 'transshipment' allows restricted goods to enter a market via a neutral third party. By shifting the focus from the country of export to the country of origin, Australia would be moving toward a more stringent 'provenance-based' enforcement model to protect its domestic industry and uphold geopolitical sanctions.
