Did you know that the ISPM-15 standard has become one of the great requirements for transporting wood? Not complying with it could lead to significant sanctions that harm businesses dedicated to exporting and importing.

In general, the ISPM-15 standard regulates the conditions for the shipment of wood. This abbreviation is translated into Spanish from ISPM–15, which means International Standard for Phytosanitary Measures.

What is ISPM-15?

First, the ISPM-15 standard (International Standard for Phytosanitary Measures No. 15) is a regulation that obeys international concerns about the spread of pests. After all, wood acts as a means of transport for certain insects to reach new regions where they can develop.

The Integrated Pollution Prevention and Control (IPPC) sanctioned the law in 2002. Since then, modifications have been made twice so that the law adapts to the needs of companies.

Why is ISPM-15 essential?

Many people need help understanding the importance of wood packaging compliance. Some of the most important details of this law are the following:

• Help to regulate the international transport of wood efficiently
• Prevention of certain pests from migrating from one country to another by using packing wood as a means of transport
• Reduction of the negative effects of the pests above in the ecosystem
• Prevention of certain pathological microorganisms from using pests as vectors to transmit to other people

Therefore, the importance of ISPM-15 standards lies in health and environmental care. That is why any company that works with wood must be attentive to these.

What are the requirements of ISPM-15?

Now talking a bit about how the essential standards for shipping timber affect businesses, we should discuss the requirements. Some of the measures that must be met will be mentioned below:

• It is required that the wood used in packaging be debarked before going through procedures approved by ISPM-15. It is to avoid a recurrence of pest infestation.
• One of the accepted procedures to eliminate insects that inhabit wood is heat treatment or HT. It is based on raising the temperature of the material to 56°C and contemplates several mechanisms to do so.
• You can also opt for fumigation with a methyl bromide-based pesticide. This gas is used to fill containers or completely cover the wood. However, there has been much discussion about the possibility of restricting its use because it is a highly polluting agent for the environment.
• Some alternative measures are currently being evaluated for methyl bromide in wood and packaging. Such is the case of sulfuryl fluoride, methyl iodide, and phosphine. However, the main alternative today continues to be heat treatment.

The ISPM-15 standard is developed with this base, establishing a specific mark to identify the fumigated containers. A square with the country code, the product, the IPPC symbol, and the treatment code characterizes it.

In the latter case, acronyms such as HT or MB are used for heat treatment or methyl bromide, respectively. This mark is usually on a visible area of the packaging to make it easily recognizable and can only be applied by an authority in the area.

Is this regulation used for all types of wood?

The truth is that certain packaging materials, such as corrugated pallets or pressed wood, do not require this. Plywood and composite wood are also exempt from international phytosanitary measures.

These exceptions occur because the manufacturing process for these types of wood requires high temperatures and pressure. It means carrying out an additional procedure to eliminate insect infestation is optional.

What happens if you do not comply with ISPM-15 standards?

Surely you are wondering what are the consequences of failing to comply with the wooden packaging. In these cases, the following could happen:

• The authorities can remove the transferred product to be able to apply treatments against pests to the wood
• There is also the possibility that the packaging is directly destroyed to prevent the spread of pests
• If they try to mobilize products with packaging that does not comply with the ISPM-15 standard, they may be rejected
• Some authorities choose to forward the container with their products to the place of origin

In any case, you will find yourself in a complex situation since the international transport of wood is very strict. Since your main interest is that the product reaches its destination, you will be involved in a bureaucratic process to achieve it.

Navigating the Implications of VAT and IEPS

Tax Implications Associated with Compliance with the ISPM-15 Standard

In complying with ISPM-15, it is also important to consider the tax implications associated with international trade in wood products. Although VAT (Value Added Tax) and IEPS (Special Tax on Production and Services) generally apply to various products, compliance with the ISPM-15 standards can indirectly impact these taxes.

VAT and Compliance Costs. Ensuring that wood products comply with ISPM-15, such as heat treatment or fumigation, can increase production costs. These additional costs could, in turn, affect the base value on which VAT is calculated.

IEPS and Treated Wood Products. Certain products considered harmful to the environment may be subject to IEPS in some countries. Since methyl bromide, used in fumigation, is a substance that has been the subject of concern due to its environmental impact, products treated with this agent may be subject to higher IEPS rates. It is recommended to consult local regulations and look for more ecological alternatives for wood treatment.

Tax Incentives. In certain jurisdictions, compliance with environmental and safety standards, such as ISPM-15, could make companies eligible for tax incentives or reductions in tax rates.

Companies involved in the international trade of wood products need to be well-informed about phytosanitary regulations and how these regulations interact with applicable taxes. Consultation with a trade and tax specialist can be beneficial in navigating these interrelated issues.

Best practices for compliance

After reviewing everything related to the importance of the essential standards for the shipment of wood, we must talk about their compliance. What is the best way to ensure you comply with said regulation?

• Ensure your containers have the ISPM-15 characteristic mark with the IPPC logo.
• Stay updated with updates to these types of rules so you know how to comply with them.
• In case of reusing packaging with repairs or modifications, ensure the ISPM-15 verification has been carried out.

These measures are essential because many countries have adopted ISPM-15 standards worldwide. It includes all members of the European Union, the United States, China, and Japan.

Acquire the best ISPM-15 certified products.

To avoid problems due to possible sanctions from  international phytosanitary measures you should know DMD Custom Crates & Boxes. It is the company where you can buy pallets and containers made with products treated to prevent the spread of pests.

Do you want to know our offers and promotions? In that case, you should contact us. We offer the best wooden packaging products that comply with ISPM-15 standards. You can find our contact information on our website to communicate with us.