Online auction site Trade Me has decided to impose tight restrictions on all new products made from kwila, a tropical Papuan hardwood.
The move is a response to ongoing pressure on New Zealand retailers by the Indonesia Human Rights Committee not to sell products made of illegally sourced timber.
The committee says Trade Me's move to exclude all kwila products, bar those certified as legally sourced, is an important step.
But it says its ultimate goal is a total ban on kwila imports, to help protect rainforests from further destruction.
It says most kwila coming into New Zealand is sourced from Indonesia's Papua region where illegal logging is endemic and supported by security forces.