The Forest Products Development and Marketing Council Guyana Inc. (FPDMC) in its efforts to promote the export of timber products have over time held a series of awareness seminars with stakeholders in the industry. These seminars cover all aspects of customer requirements. For the benefit of stakeholders who might have missed these seminars the FPDMC would now like to inform them of these important prerequisites for exporting timber or timber products.
The exporters of these products should note the importance of maintaining timelines and efficiency in the exportation process and should ensure customer satisfaction at all times. There is a need to always ensure that agreed shipping times are met and that business is conducted in an efficient manner to the customer’s satisfaction, for these customers may have their own orders to be fulfilled. If orders are not met in a timely manner, the customers could become disgruntled and eventually the exporter may lose that market. In the event that orders cannot be fulfilled due to unforeseen circumstances, the customers should be informed of the reasons for the delay or non supply.
Another element of the export requirement is to ensure proper contractual agreements are entered into by both parties. The contracts must be specific with regard to species, price, quantities, and quality and as well as shipping time. At the time the contract is being negotiated methods of payments should be clearly stated and understood by both parties.
In terms of payment there are three established methods by which payment for products supplied can be effected. Firstly, there is the letter of credit facility which is the more popular and safer method of payment though a bit expensive. Secondly, the parties can also arrange for payments to be made upfront, that is, before the shipment leaves Guyana. And finally the parties can arrange for payment to be made after the customer receives the shipment. In the latter case there are risks involved, for it is not unusual for the shippers to encounter problems in receiving payments using this method. This method should only be used if there is a good relationship between the exporter and the importer.
Over the years the FPDMC has been receiving complaints from foreign buyers about the inconsistency in the supply of timber and timber products also about the quality of the products shipped. Timber producers need to recognize that in order for them to survive on the export market it is essential that they supply the agreed quantities in a timely fashion and also ensure that the product is not of a substandard quality but that the product is up to international standards.
Most overseas markets require products that are made from kiln dried material. It has now become necessary for exporters to ensure that the moisture content of the wood that is being processed is at the accepted level. A moisture meter can be used to ensure that the wood being processed is at the required moisture content. Wood processors who do not have access to drying kilns should utilize the services of the three community kilns that are located in Essequibo, Berbice and Linden. In addition wood processors can also chose to construct their own solar drying facility which is cheaper and simpler to operate. There are also some private kiln drying facilities that offer the service of drying timber for producers.
Exporters should ensure the final products are securely and safely packed so as to ensure damage does not occur during shipping. Sealing the ends of lumber using methods such nail plates and painting helps to prevent damage such as splitting and cracking which could occur during shipping. Some contracts require a grading certificate to ensure that the quality of lumber being supplied meets the contractual specifications. If this is required then the exporter should ensure that the grading certificate is obtained from the relevant authority.
Finally the exporter should ensure all shipping documents are in place before they are submitted to the Guyana Revenue Authority for final approval. These shipping documents can be obtained from the Guyana Forestry Commission (GFC). The GFC would then process and certify the information supplied on the document before they are submitted to the Guyana Revenue Authority.
