Agarwood is among the most regulated plant-based commodities in the world. Compliance is no longer just a government requirement—it is a buyer requirement.
Understanding CITES, national legality, and private buyer standards is essential for market access, premium pricing, and long-term sustainability.
1. CITES and Agarwood
What Is CITES?
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulates international trade in species at risk of over-exploitation.
Several agarwood-producing species under the genus Aquilaria and Gyrinops are listed under CITES Appendix II.
What Appendix II Means
- Trade is allowed, but regulated
- Exporting countries must ensure:
- Legal acquisition
- Sustainable harvest
- Traceable origin
CITES does not ban agarwood—it demands proof.
2. Plantation vs Wild Agarwood
Wild-Sourced Agarwood
- Strictly controlled
- Requires proof of legal harvest
- Subject to high scrutiny
- Often restricted or prohibited in practice
Plantation-Grown Agarwood
- Legally favored in most jurisdictions
- Easier compliance if:
- Plantation registration exists
- Harvest records are complete
- Chain of custody is clear
Buyers increasingly prefer plantation-grown, traceable agarwood.
3. National Legality Requirements
While CITES governs international trade, national laws govern production.
Typical legal requirements include:
- Plantation registration (WCuP) permits
- Harvest authorization
- Transport permits
- Processing and storage records
- Export clearance and phytosanitary documents
In the Philippines, environmental compliance (e.g., CNC/ECC) and DENR-issued permits are critical.
4. Buyer Compliance: The New Standard
Major buyers—especially perfumers, luxury brands, and institutional traders—apply stricter standards than governments.
What Buyers Require
- Clear proof of origin (plantation, not wild)
- Traceable chain of custody
- Documentation of:
- Age
- Inoculation
- Harvest method
- Sustainability and ESG data
- Ability to verify claims independently
Buyers now perform due diligence audits, not just document checks.
5. Common Buyer Questions
Buyers typically ask:
- Where exactly was this agarwood grown?
- How old are the trees?
- Was it legally planted and harvested?
- Can this batch be independently verified?
- Is this supply sustainable and repeatable?
If these cannot be answered clearly, deals are delayed—or canceled.
6. How Digital Traceability Supports Compliance
Digital traceability systems help meet CITES and buyer requirements by providing:
- Tree-level records (species, location, planting date)
- Immutable logs for inoculation and harvest
- Batch integrity from harvest to export
- QR-based verification for buyers and regulators
- Audit-ready documentation
This transforms compliance from paperwork into verifiable evidence.
7. Consequences of Non-Compliance
Failure to meet CITES or buyer standards can result in:
- Shipment seizure or rejection
- Export bans or blacklisting
- Loss of buyer trust
- Long-term market exclusion
In high-value markets, compliance failure equals commercial failure.
8. The Industry Shift
The agarwood market is moving toward:
- Plantation-based supply
- Digitally traceable products
- Verified sustainability claims
CITES compliance is the minimum requirement. Buyer trust is the real gatekeeper.
Key Message
Legal agarwood is documented.
Compliant agarwood is verifiable.
Trusted agarwood is traceable.