1. Why Agarwood Is a Conservation Issue
A. Biological Rarity
- Agarwood forms only under specific stress conditions
- In the wild, <10% of mature trees naturally produce resin
- Natural resin formation may take 20–50 years
B. Overexploitation History
- High global demand → unsustainable wild harvesting
- Trees often:
- Felled completely
- Killed during extraction
- Result:
- Severe population decline
- Local extinctions in parts of Southeast Asia
C. Habitat Loss
- Deforestation
- Conversion to agriculture
- Illegal logging
These factors led to international protection measures, most notably CITES.
2. CITES Explained (Critical for Agarwood Trade)
A. What is CITES?
CITES = Convention on International Trade in Endangered Species of Wild Fauna and Flora
- International treaty (184+ Parties)
- Regulates cross-border trade of threatened species
- Ensures trade does not threaten survival
B. CITES Status of Agarwood
| Taxon | CITES Appendix | Meaning |
|---|---|---|
| Aquilaria spp. | Appendix II | Trade allowed, but regulated |
| Gyrinops spp. | Appendix II | Same protection |
| Wild-sourced agarwood | Highly restricted | Proof of legality required |
Appendix II ≠ banned
It means controlled, documented, and traceable trade
C. What CITES Regulates
CITES applies to:
- Agarwood chips
- Agarwood oil
- Resin
- Carvings
- Powder
- Finished products (above threshold volumes)
Does NOT regulate:
- Domestic trade (handled by national laws)
- Fully exempted personal-use quantities (very limited)
3. Plantation Agarwood vs Wild Agarwood (Legal Distinction)
| Aspect | Wild Agarwood | Plantation Agarwood |
|---|---|---|
| Legal status | Highly restricted | Permitted |
| Documentation | Hard to prove | Traceable |
| Sustainability | Destructive | Renewable |
| Export approval | Difficult | Favorable |
| Carbon eligibility | Weak | Strong |
👉 Plantation-based agarwood is now the preferred and promoted model under CITES.
4. Core CITES Compliance Requirements
To legally export agarwood internationally, producers must demonstrate:
1️⃣ Legal Origin
- Proof trees were:
- Legally planted
- From registered plantations
- Land tenure documents
2️⃣ Non-Detriment Finding (NDF)
- Scientific assessment proving trade:
- Does not harm species survival
- Required by exporting country’s Scientific Authority
3️⃣ Export Permits
- Issued by national CITES Management Authority
- Product-specific (chips, oil, weight, value)
5. National Regulatory Frameworks (Philippine Context)
A. Key Government Agencies
| Agency | Role |
|---|---|
| DENR | Forestry & environmental regulation |
| DENR-FMB | Forest Management Bureau |
| DENR-BMB | Biodiversity Management Bureau (CITES) |
| EMB | Environmental compliance |
| DA | Nursery & plant movement |
| Customs | Export clearance |
B. Core Philippine Requirements for Agarwood
- Tree Registration
- Plantation inventory
- Geo-tagging recommended
- Environmental Compliance
- CNC or ECC (depending on scale)
- Especially important for:
- Large plantations
- Distillation facilities
- Transport Permits
- Local movement of wood or chips
- CITES Export Permit
- Required for international buyers
- Mandatory for Middle East, China, EU
6. Global Import Requirements (Buyer Side)
A. Middle East (UAE, Saudi, Qatar, Kuwait, Bahrain)
- Strong demand
- Require:
- CITES permits
- Phytosanitary documents
- Sometimes product authentication
B. China, Japan, Korea
- Strict customs inspections
- Strong emphasis on:
- Species identification
- Legal origin
- Weight accuracy
C. EU & UK
- Additional layers:
- Due diligence (EUTR / UKTR)
- Sustainability documentation
- Traceability & ESG compliance
7. Common Compliance Failures (What to Avoid)
❌ No plantation registry
❌ Mixing wild & plantation material
❌ Poor harvest records
❌ Undeclared resin oil concentration
❌ Using “wild” labeling to inflate value
❌ Exporting without verified CITES permits
👉 These can lead to:
- Shipment seizure
- Blacklisting
- Criminal liability
8. Conservation-Driven Industry Shift
A. From Extraction to Cultivation
- Global consensus:“Wild agarwood should be conserved; plantations should supply the market.”
B. Role of Technology
- Artificial inoculation
- Tissue culture propagation
- Digital traceability (QR / blockchain)
C. Carbon & Conservation Link
Plantation agarwood:
- Stores long-term carbon
- Supports biodiversity corridors
- Qualifies for ARR carbon methodologies
9. Best-Practice Compliance Model (For Course Participants)
A CITES-ready agarwood operation should include:
✅ Registered plantation
✅ Species verification
✅ Digital tree inventory
✅ Harvest & inoculation logs
✅ Environmental clearance
✅ Carbon & ESG documentation
✅ Buyer-aligned export protocols
10. Key Learning Takeaways
By the end of this module, learners should be able to:
- Explain why agarwood is protected under CITES
- Distinguish legal plantation vs illegal wild agarwood
- Understand export permit requirements
- Identify national & international regulatory roles
- Design a compliance-first agarwood business