In recent months, the U.S. Environmental Protection Agency (EPA) has introduced two new proposed regulations aimed at ensuring that both domestically produced and imported composite wood products meet the formaldehyde emission standards set by Congress. This marks another significant development in the regulation of wood products, following the European Union's implementation of Forest Stewardship Council (FSC) certification for wood and wood products in March of last year.
China has emerged as the world’s largest producer and exporter of wood products. In recent years, the sector has become a key driver of foreign trade exports. Products such as furniture, wood-based panels, and laminate flooring rank first globally, with their share of exports to the U.S. steadily increasing over time.
Despite the growing export value, the industry continues to face challenges from internal and external factors, including the appreciation of the RMB and anti-dumping measures. These issues have raised concerns among industry players. Moreover, as countries around the world raise environmental barriers for wood products, a series of restrictive policies could impact every link in the supply chain.
**The United States Sets the Strictest Standards**
In July 2011, the "Formaldehyde Standards Act for Composite Wood Products," passed by the U.S. Congress, was formally implemented. This act established strict standards for formaldehyde emissions from composite wood products and required the EPA to develop regulations to enforce it. The standard is considered the most stringent in the world, being 1,000 times stricter than the national standard.
To ensure compliance with the act, the EPA has proposed two key regulatory measures. The first focuses on hardwood plywood, medium density fiberboard (MDF), particle board, and finished products manufactured, imported, sold, or supplied in the U.S. It includes detailed requirements for formaldehyde emissions, testing procedures, laminated product regulations, labeling, record-keeping, storage prohibitions, and enforcement. Additionally, an exemption period is provided for products made using formaldehyde-free resins or those meeting the required emission levels, allowing manufacturers to apply for a two-year test certification through approved third-party bodies.
The second regulation introduces a third-party certification framework, requiring manufacturers to obtain product certification from accredited third-party organizations listed under the Toxic Substances Management Law. To apply, companies must submit information such as the manufacturer’s name, address, contact details, a copy of the quality control manual, the manager’s contact information, product identification, resin chemical formulas, and at least one test conducted within the past three months, along with regular quality control tests.
**Wood Product Trade Faces New Challenges**
Before the effects of the EU’s FSC “identity card†policy had fully faded, many companies were already working on obtaining FSC chain-of-custody certification. Now, with the U.S. raising the bar for wood product imports, the industry is facing yet another major challenge, further complicating the trade landscape.
Looking ahead, several key bottlenecks are expected to limit exports. First, rising costs for materials like furniture sheets, paints, and adhesives will increase production and certification expenses, squeezing profit margins. Second, the rigorous third-party certification process may significantly extend product certification and customs clearance times. Third, stricter formaldehyde limits may lead to more product rejections, recalls, and reduced profitability.
**Transformation and Upgrading Are Urgent**
While the uncertainties in the market remain high, these stringent regulations are pushing companies to accelerate their transformation. Authorities remind businesses to take these legal challenges seriously, assess the dual impacts of trade barriers, and turn potential risks into competitive advantages.
First, companies should reform traditional production methods by adopting advanced foreign technologies, improving quality management systems, and strengthening self-inspection capabilities for toxic substances in exported wood products. Obtaining third-party certifications and qualified testing reports can elevate the quality and competitiveness of exports.
Second, they should focus on material sourcing by conducting thorough inspections and tests on raw materials, implementing strict supplier evaluation procedures, and selecting "green suppliers." Enhancing traceability systems and paying close attention to mandatory safety requirements—such as formaldehyde, heavy metals, and flame retardancy—will help maintain international competitiveness.
Third, increasing the export share of environmentally friendly, low-carbon products is essential for restructuring the wood product export portfolio. As demand for eco-friendly materials rises, developing safer adhesives, exploring bamboo and wood-based products, and creating non-toxic, pollution-free raw materials will play a crucial role in boosting sales and sustaining export growth.
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