Phytosanitary Wood Packaging Materials

General Questions

WHAT IS WOOD PACKING MATERIAL?

Wood Packing Material (WPM), also known as solid wood packing material (SWPM) and non-manufactured wood packing (NMWP), is defined as “wood packing other than that comprised wholly of wood-based products such as plywood, particle board, oriented strand board, veneer, wood wool etc., which has been created using glue, heat, and pressure or a combination thereof.” This includes pallets, crating, packing blocks, drums, cases, load board, pallet collars, skids, etc.

ARE PALLETS ONLY AFFECTED?

No. The standards will require all dunnage, including skids or runners used to transport bundles of lumber, to be heat treated as well.

CAN I APPLY THE MARKINGS AS SHOWN EVEN IF THERE IS NO AGENCY OVERSIGHT PROCESS ESTABLISHED WITHIN MY COUNTRY RIGHT NOW?

No, each National Plant Protection Organization (NPPO), the United States organization is USDA’s Animal Plant Health Inspection Service (APHIS), is responsible for oversight of the program, the use of marks must be coordinated with the NPPO. Companies that use the marks improperly will be investigated, possibly prosecuted, and probably fined.

HOW STABLE IS THE STANDARD? WHAT IS THE TIMETABLE FOR POTENTIAL CHANGES TO IT?

The IPPC will be reviewed in three year cycles and the necessary adjustments.

WHAT LIABILITY DO I HAVE FOR THE HEAT TREATMENT PROCESS ON MY PRODUCTS? DOES PRODUCT LIABILITY INSURANCE COVER THIS PROCESS?

A manufacturer produced, heat treated and affixed a quality mark or grade stamp upon the treated wood packaging material. The material purchased and used for its intended purpose by a company that shipped their product overseas whereupon the port authority denied delivery due to the fact the pallet was not properly heat-treated and potentially contained a form of pest or bacteria. The shipping company then wanted to initiate legal proceedings against the manufacturer of the pallet for this scenario could only be a monetary loss as no physical damage occurred to their shipped product.

In the above example the general and products liability policy would not respond, as there was an absence of "bodily injury or property damage." Furthermore, the policy excludes coverage for "Impaired Property." Impaired property is defined as a product that has a defect, deficiency, inadequacy or contains a dangerous condition. The policy also excludes the recall of products, work, or impaired property. Unfortunately the above scenario is an uninsurable occurrence.

The shipper could bring suit against the manufacturer and the insurance company would have the "right" to defend but not a "duty to defend."

There must be a physical loss to the shipper’s property for the General Liability policy to respond. To change the above scenario, if it was determined that pests infiltrated the product and caused damage, and the proximate cause of the pests was attributed to improper heat treating, then the policy could respond to incurred damages, but this could be difficult to litigate since a pallet changes hands constantly. But again, the recall expense of the pallet would still be excluded.

Products recall coverage only covers the following expenses:
Communication Expenses (telephone, radio, TV, newspaper);
Production of written announcements (printing, stationary, postage);
Paying employees overtime in excess of normal levels;
Compensating persons, other than employees, needed to provide phone coverage;
Shipping, or handling or warehousing of the recalled product;

Disposing of the product that cannot be reused, but only to the extent that the risk has been specifically billed for such expense.

The coverage does not pay for costs associated with redistribution or replacement of the withdrawn products with like products, or the repair of the withdrawn product.

In synopsis, the likelihood of a claim or suit arising out of properly treated wood is minimal. But our highly litigious society you don’t ever know and anything is possible. This is only an educated opinion. The Service Corporation recommends that you review your policy with your insurance professional and legal counsel.

Standards Questions

WHEN WILL THE STANDARD BE EFFECTIVE?

The standards were approved March 15, 2002, but they become effective when the receiving country enacts the regulations.

HOW MANY COUNTRIES ARE MEMBERS OF THE IPPC?

The United Nations Countries number is 170 Countries. The IPPC is a convention of these members.

WHY STANDARDS OR REGULATIONS?

They are designed to stop the spreading of exotic pest to other countries. In the past exotic pests have proven detrimental to key U.S. species. One of the more dramatic infestations resulted from the introduction of the chestnut blight. It was brought over from China 100 years ago and quickly spread through the Appalachians, destroying Native American chestnuts and eradicating the species from major round wood and nut makers.
Recently, Chicago neighborhoods have been clear-cut in vain attempts to control the Asian Longhorned Beetle, which was brought into U.S. warehouses via packing materials. New York Central Park has also been heavily hit by several pests.

The new standards will standardize the countries into one standard instead of having standards for each individual country. It is also prevents countries using the standards to control or limit trade.

WHAT METHODS CAN BE USED TO SATISFY THE STANDARDS?

Acceptable treatment measures include heat treatment of solid wood components and fumigation of packing material with methyl bromide.

The official heat treatment program recognized by the USDA Animal Plant Health Inspection Service and the IPPC calls for solid wood components (hardwood and softwood) of packing material to be brought to a core temperature of 56º C (about 133º F) for a minimum of 30 minutes. The product must be stamped or marked by a registered agency.

WHO WILL BE AFFECTED BY THESE MEASURES?

These regulations will not only affect pallet, box, and crate manufacturers/users, but also anyone shipping lumber over seas using solid wood skids and sticks.

WHEN DO HEAT TREATMENT REQUIREMENTS FOR HARDWOOD TAKE EFFECT?

On March 15, 2002 the IPPC adopted international regulations governing softwood and hardwood packing material. It will be up to individual countries to adopt the standards.

However the demand for products already marked is ever increasing as packaging material buyers build their inventories or convert inventories of treated materials.

HOW DOES ONE ACQUIRE A QUALITY MARK? WHAT IS REQUIRED TO MAINTAIN IT?

You have to take part in an audit program to receive the use of a quality mark. You may enter as a heat treater (if you have the capacity to heat core temperatures to 56º C or about 133º F for 30 minutes) or as an HT producer (purchasing HT lumber to produce an HT pallet, box, etc.) The audits will be monthly and require records documenting heat treatment or purchase of HT lumber, sales and inventory. Auditors will come on site to inspect records, lumber and products. The audits are typically monthly.

WHAT IS BEING DONE TO REVIEW AND APPROVE OTHER TREATMENT METHODS SUCH AS IRRADIATION?

USDA-APHIS is not involved in development of new treatment methods. The IPPC will review the standards every three years, so such treatments can be examined at that time.

CAN MATERIAL THAT HAS BEEN HEAT TREATED AND STAMPED BE STORED OUTDOORS?

There are not specific standards on storage. Many audit programs are requesting that heat treated components & pallets be stored in a separate area from non-heat treated components and pallets, for your safety.

DOES THE STANDARDS APPLY TO ALL SPECIES?

Yes.

IS IT TRUE PALLETS MUST BE BARK FREE?

Generally No, the regulations have been through many drafts, and at one time there were requirements specifying debarked lumber (not necessarily bark free) within WPM. There was no scientific reason for this wording, since heat treatment should account for any bugs within the lumber or bark.
The requirements have an optional requirement for debarked lumber by individual nations. European Union countries have been supporting the debarking issues at the IPPC meeting. At this point it is unclear if these countries will adopt different standards.

HOW MUCH DOES THE AUDIT COST?

There are 15 organizations officially recognized by APHIS and the American Lumber Standard Committee as certifying agencies for the heat treatment of WPM. These agencies develop their own price systems that are fairly competitive depending on location. For more information on certification programs call the Missouri Forest Products Association at (573) 634-3252.

IF I COMPLY FULLY WITH THE IPPC STANDARD AS IT READS NOW, WILL THE COUNTRIES THAT CURRENTLY HAVE REGULATIONS IN PLACE ACCEPT THOSE SHIPMENTS?

Each individual country must adopt their regulations that are consistent with the IPPC standard. If a country has a current standard, the current standard remains in effect until the country re-adopts the new standard.

CAN WE USE BRANDS OR STENCIL PAINTING?

Yes, they can be used, but they must be very clear. However, they must be approved by the agency.

CAN THERE BE A TRAVEL AROUND TREATER?

No. There must be a resident quality mark for each facility where the treatment has taken place.

HOW IS LOOSE DUNNAGE BEING TAKEN CARE OF?

Dunnage is to be stamped with the quality stamp that has “HT DUN” written on it. It is to be heat treated and must comply to the ISPM15 standards also.

HOW DOES THE STANDARD EFFECT LUMBER BEING SHIPPED TO OTHER COUNTRIES?

We have been told by the American Lumber Standards Committee that many countries are not requiring that hardwood lumber that is being shipped that has runner boards on the bottom (that allow you to pick-up the stack with a forklift) does not have to be treated or marked to the ISPM15 standards (the runner boards that is). We are also told that if the hardwood stack is "sticked" that those sticks also don't have to be treated or marked to the ISPM15 standards. These runner boards must be banded to the hardwood stack of lumber. The United States Department of Agriculture's Animal, Plant and Health Inspection Service also agree with this conclusion. Know that the ISPM15 international standards do not clearly outline this practice.

CAN BRANDERS BE USED ON MACHINERY TO BRAND THE PALLETS AS THEY ARE BEING MADE INSTEAD OF AFTER THEY ARE HEAT TREATED?

No. The American Lumber Standards Committee indicates that this is not an acceptable practice. The quality mark must be placed on the material after it is treated.

CAN A ROLLING MARK BE USED ON THE SIDE OF PALLETS?

Yes, a rolling mark may be used after the treatment process.

I HAVE BEEN RECEIVING SOFT WOOD AND HARD WOOD THAT HAVE JUST BEEN STAMPED "HT" ... BUT NOT THE GRADE STAMP THAT INCLUDES THE AGENCY LOGO AND PLANT NUMBER. CAN THIS HT LUMBER BE USED TO CONSTRUCT THE PALLETS FOR A STAMP (OR QUALITY MARK)?

No, the heat treated lumber must have the grade stamp that is audited by an agency prior to placing the quality mark. This is the same answer that was given in the course, but there was some doubt about it. I confirmed it with the American Lumber Standards Committee.

WHAT ABOUT WOOD MATERIALS THAT ARE ALREADY ENROUTE? WILL THERE BE A "GRACE" PERIOD?

The standard doesn't address this, but our expectation is that there would be a phased in implementation period for each country.

WILL LUMBER SHIPMENTS BEING SHIPPED AS A COMMODITY IN ITSELF BE AFFECTED?

The IPPC standards only apply to non-manufactured wood packaging material used in transporting commodities.

Heat Treatment Questions

HOW LONG DOES HEAT TREATMENT LAST?

Once components or pallets have gone through the heat treatment process, they are “heat treated” until removed from use.

WHAT IS A TYPICAL KILN SCHEDULE FOR HEAT TREATING HARDWOOD?

It would seem that most will heat treat the assembled pallets rather than that in cant form. (It may prove too difficult to saw and nail HT boards that have lost much of their moisture.) There are a few ways to prove that core temperature reaches 133º Fahrenheit. One includes direct measurements of core temperature by placing probes into drilled holes. The other requires the use of live steam with a maximum wet bulb-dry bulb depression of three percent. Schedules have been developed based on specific gravity, lumber dimension, and chamber temperatures. This information is available on MFPA's website

HOW DO WE HANDLE RECYCLED PALLETS?

Recycled pallets must be completely treated. If packaging materials are repaired the entire unit must be retreated and marked.

Fumigation Questions

WHAT IS FUMIGATION?

Fumigation is the process of placing wood packaging material in a confined area and using a chemical to treat the wood packaging material that will kill bugs, microscopic organisms, and rodents. The only approved chemical that can be used in the United States is Methyl Bromide.

The US EPA is in the process of phasing out the use of methyl bromide. However, there is a special exemption for the use of methyl bromide for quarantine and pre-shipment applications. This exemption was finalized on January 2, 2003.

WILL THERE BE REQUIREMENTS FOR FUMIGATION?

The National Wood Pallet and Container Association (NWPCA) is the national agency for fumigation standards. NWPCA will certify agencies to certify companies on the fumigation standards.

CAN FUMIGATION BE USED UNDER THE NEW INTERNATIONAL STANDARDS?

Yes, fumigation may be used to meet the international standards.

IS MFPA CERTIFYING FUMIGATION?

No we do not.

For questions about this MFPA program, e-mail brandon@moforest.org