What is CITES?

What is CITES?

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is a multilateral treaty that regulates international trade in specimens of wild animals and plants to ensure it does not threaten their survival. Signed in 1973 and entered into force in 1975, CITES currently has 184 parties (countries) and protects approximately 40,900 species through a system of permits and certificates that governs their international trade.

Why It Matters

International wildlife trade is a multi-billion-dollar industry. Legal trade alone is valued at over $300 billion annually, encompassing everything from tropical timber and ornamental fish to medicinal plants and luxury leather goods. Without regulation, commercial demand can drive species to extinction—a pattern documented repeatedly with species from elephants (ivory) to rosewood timber to pangolins.

CITES provides the primary international framework for preventing trade-driven extinction. Species are listed in three appendices based on the level of protection needed. Appendix I prohibits commercial trade entirely for the most endangered species (~1,100 species). Appendix II permits trade with export permits demonstrating sustainability (~37,000 species). Appendix III allows countries to request cooperation in controlling trade in species they regulate domestically (~300 species).

For businesses, CITES compliance is a legal obligation with serious consequences. Trading in CITES-listed species without proper permits constitutes a criminal offense in most jurisdictions. Companies in sectors including timber, fashion (exotic leather), pharmaceuticals (plant-derived compounds), pet trade, and food (caviar, certain fish species) must maintain CITES compliance programs. Supply chain due diligence for timber and wildlife products increasingly references CITES listings.

The treaty intersects with broader sustainability concerns. The EU Deforestation Regulation (EUDR) and US Lacey Act complement CITES by addressing illegal logging and wildlife trafficking. Corporate biodiversity strategies must account for CITES obligations when sourcing natural materials or operating in biodiverse regions.

How It Works / Key Components

The appendix system creates a tiered regulatory framework. Appendix I species face the strictest controls—commercial international trade is prohibited, with exceptions only for captive-bred animals or artificially propagated plants under specific conditions. Appendix II species can be traded internationally but require export permits from the country of origin, issued only after a scientific authority determines the trade is not detrimental to wild populations.

National authorities implement CITES through domestic legislation. Each party designates a Management Authority (which issues permits) and a Scientific Authority (which advises on sustainability of trade). The effectiveness of CITES depends heavily on national implementation capacity—countries with weak enforcement face challenges controlling illegal trade.

The Conference of the Parties (CoP), held every three years, reviews and amends species listings based on population data, trade volumes, and conservation assessments. CoP decisions are contentious and politically charged—recent CoPs have debated ivory trade reopening, shark fin regulation, and rosewood protection. NGOs, scientists, and industry stakeholders participate actively in these negotiations.

Enforcement involves customs inspections, permit verification, DNA forensics, and international cooperation through INTERPOL and the World Customs Organization. Despite these efforts, illegal wildlife trade remains a significant challenge, estimated at $7-23 billion annually. Technology improvements—AI-powered species identification, blockchain-based permit tracking, environmental DNA—are enhancing enforcement capabilities.

Council Fire's Approach

Council Fire integrates CITES compliance into broader supply chain sustainability programs, helping clients identify CITES-relevant species in their sourcing, establish permit management systems, and build due diligence processes that satisfy both CITES obligations and emerging deforestation and biodiversity regulations.

Frequently Asked Questions

Which business sectors need to worry about CITES?

Timber and forest products (rosewood, mahogany), fashion and luxury goods (exotic leathers, furs), pharmaceuticals (plant-derived medicines), food and beverage (caviar, certain fish), horticulture (orchids, cacti), and pet trade. Any business sourcing natural materials from wildlife should assess CITES relevance.

What are the penalties for CITES violations?

Penalties vary by jurisdiction but typically include criminal prosecution, substantial fines, imprisonment, confiscation of goods, and trade suspensions. The US Lacey Act allows penalties up to $250,000 and five years imprisonment. The EU Wildlife Trade Regulations impose similar sanctions.

How does CITES relate to the EUDR?

Both address trade in products linked to biodiversity loss. CITES specifically regulates trade in listed species, while the EUDR targets commodities (cattle, cocoa, coffee, oil palm, rubber, soy, wood) linked to deforestation. Companies sourcing these commodities may need to comply with both frameworks.