Dear friends and colleagues.

Today in a phone call conversation with a dear friend of the essential oil industry, I
was confronted with the lack of information from our side regarding to the latest
developments of the Bulnesia Sarmientoi -Guaiac wood oil- drama and its current CITES

This is partially true and I hide under the excuse that it is extremely hard to forecast
outcomes when official government institutions are involved. None the less this kind
uppercut has given me the courage to write up a few lines and send them to you and other
friends; and this way try to redeem myself. So here it goes………

This morning (Thursday November 4th) the traditional guaiac wood oil exporters
participated in a meeting at the Environment Ministry -MADES- who is also the CITES authority
in Paraguay. The reason for this meeting was to go over the requirements that the export
companies must meet in order to apply for the 2021 CITES export QUOTAS. The usual
documentation that has been needed in the past will again be required for the upcoming
season. Some minor prerequisites that were not clear were exposed and clarified.

We were made knowledgeable to the fact that the ¨Paraguayan CITES authorities
had at last sent, between weeks 42 and 43, the Non Detrimental Finding study (NDF)
petitioning an Export Quota from 2021 to 2025 to the following institutions:

– CITES Geneva
– Union for Ethical Bio Trade – UEBT
– The European Union Scientific Committee of CITES

The next natural step for CITES Geneva would be to issue a non-objection or approval
of the NDF including the proposed Export QUOTA, and publish this information on their
website. This usually takes between 30 to 45 days after the review is initiated. Finally, the
Paraguayan CITES authority would re-confirm and subsequently release the QUOTA. A
statistical reminder is that in the past the annual QUOTA for Bulnesia Sarmientoi -Guaiac
wood oil- was 250 TONS per year.

It is important to bring to mind that the traditional Guaiac oil exporting companies
have been conforming since the very inception of Bulnesia Sarmientoi -Guaiac wood oil’s
inclusion in the APPENDIX 3 of CITES in 2008, and afterwards in APPENDIX 2 in 2010; with each
and every regulation the Paraguayan and international CITES authorities have stipulated.

Most significantly is the observance -for years now- that the timber extraction takes
place only from forests with a Sustainable Management Study
. Any claims that such
traditional practices are an innovation or a “new sustainability approach” is an
overstatement and rather normal due diligence and basic compliance with the
Paraguayan and international CITES legislation.

The intended outcome is that the 2021 QUOTA will be made public before years’
end, and that the 2022 QUOTA is also issued by Easter 2022. Only then would pressure be
released and the market stabilized. So do I believe to be true at this moment.

Best regards
Karl Janz

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