Update on Lacey Act Requirements For Wood and Plant Products

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Issue 63, October 29, 2008

In an effort to keep our clients abreast of the current situation regarding the Lacey Act updates incorporated in the Farm Bill of 2008 we would like to pass on this information regarding the current situation.

Customs and Border Protection (CBP) and the Animal and Plant Health Inspection Service (APHIS) recognize that the general terminology “plant products” in Lacey Act will impact up to 80% of importations. Because “plant products” is such a general description this term includes lumber, paper, some plastics, cotton, rubber, pharmaceuticals, inks, dyes, tools with wooden handles and thousands of other items that have a plant product on them. Additionally, the requirement for paper based declarations will virtually eliminate the paperless entry process.

As a result Customs and Border Protection (CBP), in conjunction with the Fish and Wildlife Service, is currently developing an electronic system that will collect the data required to be declared. The government will delay enforcement of the declaration requirements until the electronic system is completed, which is anticipated to be by April 1, 2009.

Once the electronic system is completed, all the agencies which are involved with the enforcement of the Lacey Act will employ a phase-in approach to enforcement of the Lacey Act declaration requirements.

The scheduled Phase In is as follows

Phase I – Present to March 2009
From December 15, 2008 to April 1, 2009 (or as soon as the electronic system is available) The Animal and Plant Health Inspection Service (APHIS) will make a paper declaration form available for voluntary submission to be accepted after December 15, 2008. Declarations will not be required but any person who submits the declaration containing false information may be prosecuted.

Phase II – Beginning April 1, 2009 (or as soon thereafter as an electronic system is available)
On April 1, 2009, (or when the electronic system for collection the declaration is available) enforcement of the declaration will begin for wood and certain wood products (classified in Chapter 44) and certain live plants and related products (classified in Chapter 6).

Harmonized Tariff Schedule (HTS) Chapters 44 and 6

Chapter 44 (wood & articles of wood)
Chapter 6 (live trees, plants, bulbs, cut flower, ornamental foliage, etc.)

Phase III – Beginning July 1, 2009
On July 1, 2009 Harmonized Tariff Schedule (HTS) Chapters 47, 48, 92 and 94 will be phased in, in addition to Chapters 44 and 6.

Chapter 47 (wood pulp)
Chapter 48 (paper & articles of)
Chapter 92 (musical instruments)
Chapter 94 (furniture)
Plus chapters included in Phase II

After September 30, 2009 it is currently believed that the following HTS chapters begin a phased in enforcement of the declaration requirements.

Chapter 12 (oil seeds, misc. grain, seed, fruit, plant, etc.
Chapter 13 (gums, lacs, resins, vegetable saps, extracts, etc.)
Chapter 14 (vegetable plaiting materials and products)
Chapter 45 (cork and articles of)
Chapter 46 (basket ware and wickerwork)
Chapter 66 (umbrellas, walking sticks, riding croops)
Chapter 82 (tools)
Chapter 93 (guns)
Chapter 95 (toys, games and sporting equipment)
Chapter 96 (brooms, pencils, and buttons)
Chapter 97 (works of art)

At this point there is no schedule for future chapters to be phased in, but unless the Act is amended by Congress, the rest of the tariff chapters will be included at some point.

According to APHIS chapter descriptions are for ease of reference only.

DHL will continue to provide updates and with information regarding Alliance processing instructions when they become available.

Sincerely,

Paul E. Vroman
Manager, Regulatory & Compliance Consulting and Projects
Licensed Customs Broker
NCBFAA Certified Customs Specialist