The government has assured the Timber Trade Federation (TTF) that it is on the case of possible fraudulent claims under the Coniferous Plywood Quota.
In a response to a letter from TTF technical officer Nick Llewellin, economic secretary to the treasury Chloe Smith MP said HM Revenue & Customs (HMRC) was using a new scientific method of analysis which “should give the evidence it needs to identify anyone who is abusing the quota system”.
She said previous methods of analysing plywood samples had proved inconclusive.
Ms Smith said HMRC investigates information it receives about suspect activity – such as claiming poplar-core products under the quota.
“HMRC tells me that it looks into all the information it receives,” she said. “It may not, however, always be evident that action has been or is being taken.”
HMRC is sharing information on suspect activity with the European Commission.
The TTF’s letter had stated that 14,156m³ of plywood from China was claimed under the quota in January-June, 2011, which “almost certainly” was not coniferous throughout plywood under the terms of the duty concession.
It said this amounted to a potential loss in HMRC revenue of around £200,000.
The TTF asked that HMRC investigate any quota claim made below £205/m³.
