Preliminary findings of the teak corridor investigation

The preliminary results of the global teak corridor transaction verification (TV) loop reveal the complexity of global trade patterns of teak from forest management certificate holders in Latin America and Asia to processing and consumer markets in the United States and Europe.  

FSC and Assurance Services International (ASI) launched the teak corridor TV loop in 2025 to investigate the risk of non-certified teak (Tactona grandis) entering FSC-certified supply chains.

In the first phase of this TV loop, ASI mapped out the trade flows of FSC-certified teak across 17 countries covering Europe, the Asia Pacific region, and the Americas This analysis was based on transaction data collected from 661 certificate holders (including sites and group members) from January to December 2024.

Global trade patterns highlight that:

• According to the data collected for this TV loop, the materials labelled FSC 100% teak mainly come from Costa Rica, Mexico, Nicaragua, Panama, and Thailand.
• Latin American teak dominates exports to Asia and Europe, supplying markets in China, Hong Kong, Singapore, Vietnam, Austria, and the Netherlands.
• Teak from Thailand is further processed in Asia, Europe, and the United States.

Country-level insights show that:

• In India, out of 143 certificate holders with teak in their certification scope, only 11 declared active transactions. Most FSC claims were FSC Controlled Wood (FSC CW) or FSC RECYCLED. FSC 100% teak traded in India was imported from Latin America via transit intermediaries.
• In Italy, out of the 253 certificate holders (including group members and multi-sites) who submitted TV data, 37 reported active teak transactions. They imported teak from Mexico, Asia (India, Indonesia, Singapore, Thailand, and China), and within the European Union (Germany and Portugal). The sale of teak-based materials from Italy were primarily directed to domestic and European Union buyers, with the majority sold to non-certificate holders (including end consumers).

Potential risks that warrant further investigation:

• The transaction analysis shows that in the upstream sections of the supply chain, the quantity of timber purchased is inconsistent with the volume of products sold. Such potential volume mismatches indicate the possibility of non-certified material entering certified supply chains.
• Certain certificate holders reported ‘no sales’ in the FSC database, but purchase declarations were made by their buyers. A certificate holder can waive their annual audit if they declare ‘no sales’. However, the discrepancies mentioned above signal a situation known as ‘hidden sales.’ There is also a potential risk of non-certified material entering the supply chain without being detected, which would otherwise be surveyed during the annual audit.
• FSC Controlled Wood and FSC RECYCLED material sourced from non-certified companies indicate the presence of these types of materials in the supply chain.

Next steps: Transaction investigation phase

Acknowledging the potential integrity risk that stems from cases when some certificate holders declare ‘no FSC sales’, an Advice Note on Public Disclosure of ‘no FSC sales’ was put into effect from 1 January 2026. FSC has introduced a new feature in the FSC Public Search to enable viewers to see the names of the certificate holders who declare ‘no FSC sales’ in their previous audit. FSC certified companies are invited to use this information for due diligence and compliance processes as well as for communication with their trading partners.

ASI will continue to analyze transaction data and investigate through engagement with relevant certificate holders to ensure conformity with FSC requirements. High-risk supply chain clusters and certificate holders demonstrating potentially risky behaviour identified in the preliminary findings will be subject to further investigation in the second phase of the TV loop.

Previous news releases 

Investigation into FSC’s Teak Corridor | fsc.org February 2025 (Announcement of the Teak Corridor TV Loop) 

No Burmese Teak Found in FSC Supply Chains | fsc.org August 2024 (Final results of the former Teak TV Loop)