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Business News of Sunday, 5 October 2014

Source: BFT

Fate of 2,000 containers of rosewood hangs

The fate of some 2,000 containers loaded with rosewood ready for export hangs in the balance, sources in the timber industry have said.

The containers, according to the sources, are locked up in the Brong Ahafo, Volta and Northern Regions. This huge consignment, the anonymous sources said, was procured with bank credit facilities and made ready for export before President John Mahama announced a ban on rosewood exports.

Despite their high commercial value, the rosewood consignment has been left to the mercy of the weather -- a situation that a source said could lead to the loss of millions of Ghana cedis in investment.

One of the sources pleaded with government to grant permission for export of the product, since there are indications that the rosewood was procured before the ban came into effect.

Exporting the locked-up rosewood, the anonymous source said, will allow the owners to service their bank loans.

A Ministry of Lands and Natural Resources ban on rosewood exportation came into effect on January 1, 2014.

The directive also outlawed the harvesting, transportation and processing of rosewood timber, while stating that the product is also not allowed to be transited through the country’s borders.

The statement said the measure was being instituted to curtail the practice whereby rosewood is illegally harvested in Ghana, transported to neighbouring countries and brought back into the country as transit timber.

The Customs Division of Ghana Revenue Authority (GRA) in August impounded 51 containers of rosewood which were about to be shipped to India.

Assistant Commissioner Sabblah, who inspected the contents of the containers at the Tema Port before its movement to the state warehouse, said officers from his outfit impounded the containers which were about to be loaded onto a waiting vessel.

Rosewood belongs to a category of hardwoods and to any number of fine-grained lumbers. They are often brownish with darker veining, but found in many different hues. Rosewoods come strong and heavy, finishes excellently with polish, and are, usually, suitable for guitars, chess pieces, handles, furniture, luxury flooring, among others.