Chandan wood (aka sandalwood) is listed as
vulnerable, which is a step below
endangered. Nevertheless, I believe that the Nepal government made the use and export of chandan wood illegal some years ago. Here is a 2009 article from "The Economic Times." I can't vouch for that source, but the article is consistent with what I've seen:
https://economictimes.indiatimes.com/news/politics-and-nation/red-sandalwood-indo-china-smuggling-via-nepal-is-getting-upward-swing/articleshow/4521629.cms
Red Sandalwood Indo-China smuggling via Nepal is getting upward swing
The turmoil in Nepal following the political crisis may give a fresh impetus to the high-volume Indo-China red sandalwood smuggling via Nepal
SILIGURI: The turmoil in Nepal following the political crisis may give a fresh impetus to the high-volume Indo-China red sandalwood smuggling via Nepal.
"The smuggling of red sandalwood is a major concern for us. Our intelligence reports and recent incidents indicate that it is on the upswing," said officials in the Sasastra Seema Bal (SSB) that guards the Indo-Nepal border. As a matter of fact, the seizure of red sandalwood has become a common issue all along the porous Indo-Nepal border. Apparently, it is much in demand, for the wood is used to make butts of guns.
According to SSB and Nepal security agencies, over 1000 metric ton of red sandalwood has been seized during the last year from both sides of the border....
"The trade won't stop unless we can break the buying chain," said Mr N Chhetri of Nepal Customs.
While talking to ET about the possible buyers, a senior intelligence official specializing in cross-border smuggling prevention said, "Due to less fragrance but equal curving capacity and strength, red sandalwood is preferred for making butts of firearms. China is one of the largest buyers. Now since all attention is focused on political developments in Kathmandu, the grey trade operatives are likely to increase their activities."
The consignments generated largely as a result of illegal Indian felling in Karnataka first get routed to Nepal through the porous Indo-Nepal border along UP, Bihar or West Bengal. From there, these get into China through Tatopani on Arniko Highway in North Nepal, the largest Sino-Nepal trade point. These help the operatives in avoiding other conventional and heavily-guarded trade routes.