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RCED-85-17 1 (1985-01-28)

handle is hein.gao/gaobabexg0001 and id is 1 raw text is: FELEASED ttSTRICTED - Not to be released outslde the Oneral Accounting Office except on the basis f specific approval I 2-/ ?6 1by the Office of Congressional Relations, REPORT BY THE U, S General Accounting Office Potential Impacts Of Tighter Forest Service Log Export Restrictions Federal law restricts the export of unprocessed timber cut from national forests in the western half of the United States. Also, purchasers of national forest timber are restricted from substituting timber harvested from federal lands for privately owned timber that they export. GAO reviewed the magnitude of and the potential impacts from extending the substitution restriction to cover third parties who subsequently acquire Forest Service timber from the original purchasers--an export industry practice commonly referred to as third-party substi- tution. According to the Forest Service and timber industry associ- ations, third-party substitution approximates 100 million board feet annually in the western United States. They said that if the practice were banned, some companies could acquire national forest timber at lower prices because of decreased demand and competition, and the lower prices would result in less government revenues. Also, a ban could disrupt traditional log markets and business practices. The Forest Service believes it could not enforce a ban on third-party substitution without additional legal authority and staff. S7, 126136 GAO/RCED-85-17 JANUARY 28, 1985 -1eCout , o / d~ '10COU 1

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