Lumber and Wood

• Trade and Tariffs
• Tariff Elimination

Trade and Tariffs

The lumber and wood sector is defined by chapter 44 of the Harmonized Tariff System. Lumber and wood products accounted for less than 1 percent of total U.S. industrial exports to Peru in 2005, totaling $3.7 million. The top U.S. exports in this sector were preserved rough lumber, coniferous lumber, and fiberboard. Peruvian tariffs range between 4 and 12 percent, with an average of 11.5 percent in 2005.

Peruvian exports to the United States totaled close to $60 million in 2005, or about 2 percent of Peru’s total industrial exports to the United States. Top Peruvian exports to the United States were worked virola, mahogany, imbuia, balsa, and other tropical woods. The U.S. tariffs range between zero and 8 percent with an average of 5.2 percent. All Peruvian exports within this sector enter the United States duty-free under the Andean Trade Preference Act (ATPA) and Andean Trade Promotion and Drug Eradication Act (ATPDEA) tariff preferences.

Tariff Elimination

Overall, tariffs will be phased out according to four tariff elimination categories: immediate elimination, equal cuts over five years, equal cuts over seven years, and equal cuts over ten years.

For lumber and wood products, 100 percent of U.S. industrial exports will receive duty-free treatment immediately upon implementation of the agreement. Tariffs on some products, which the United States does not export to Peru, will be eliminated over five years. Tariffs on high-value priority wood products including particleboard, fiberboard, and some builder’s joinery will be phased out immediately upon implementation of the agreement.

International Trade Administration
Manufacturing and Services
Office of Trade Policy Analysis