Why Agarwood Needs Regulation
Agarwood, also known as oudh, is a precious and fragrant resinous wood formed inside trees of the Aquilaria and Gyrinops species.
Due to its high market value and spiritual importance across the Middle East and Asia, overharvesting has led to the decline of wild agarwood-producing trees. Recognizing this, international agreements such as CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) have listed most agarwood species under Appendix II. This listing means agarwood trade is allowed, but strictly controlled to ensure sustainability and traceability.
UAE's Legal Framework for Agarwood Trade
The UAE is a signatory to CITES and has implemented local laws to regulate international trade of endangered species, including agarwood.
Under Federal Law No. 11 of 2002 and Cabinet Resolution No. 22 of 2003, all companies engaged in the import, export, or re-export of agarwood must be registered with the CITES Management Authority. Importers and exporters are required to obtain permits, declare quantities, and follow strict documentation protocols at borders. Violations may result in fines, imprisonment, or confiscation of goods.
CITES Compliance and Enforcement Challenges
While the UAE has made notable progress in CITES reporting and inter-agency collaboration, enforcement remains challenging.
Agarwood is often imported as personal luggage, and distinguishing between legal and illegal trade is difficult. Customs and quarantine officers at Dubai International Airport—where 95% of agarwood shipments enter—are being trained to identify different forms of agarwood. Additionally, new HS Codes introduced in 2006 have improved trade categorization. However, gaps remain in identifying reconstituted or counterfeit agarwood, including the widespread "BMW" (Black Magic Wood), a low-grade imitation product.
Cooperation Between Producer and Consumer Countries
The UAE has consistently advocated for closer collaboration between agarwood-producing nations and consumer nations across the Gulf.
In 2006, the UAE participated in the CITES Agarwood Experts Group Meeting and has called for regional forums to address trade regulation, personal-use exemptions, and sustainable sourcing. Cross-border data sharing, standardized measurement units (e.g., kg for wood and liters for oil), and education campaigns are among the UAE's strategies to build transparency and trust in the supply chain.
The Future of Sustainable Agarwood Trade
Looking ahead, the UAE's role as a trade hub gives it a unique responsibility—and opportunity—to influence global agarwood sustainability.
While wild sources are declining, plantation-grown agarwood is emerging as a viable solution. The UAE is expected to push for clearer CITES guidelines on cultivated agarwood, and support identification tools for enforcement agencies. Increased registration of traders and adoption of digital permit systems could further improve traceability. Ultimately, aligning cultural heritage with conservation is the key to ensuring that this treasured wood remains available for generations to come.
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