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New Declaration Requirement for Importers of Products Containing Plant or Wood Material
Last May's Farm Bill, amending the Lacey Act, included provisions requiring importers of products containing plant or wood material to file a new declaration with their entry documents. The law goes into effect December 15, 2008; however, the effective date for mandatory submission has been delayed until electronic means of submission are available or no earlier than April 1, 2009.
The delay in implementation of the law comes as a relief to the entire importing community. CBP has estimated that the law will affect over three quarters of the products in the harmonized code; everything from furniture, to chewing gum, to textiles and clothing. The law requires that importers file a declaration indentifying the scientific name and species of any plant or wood material contained in the product, the quantity and value it comprises, and the country from which the plant/wood material was originally harvested. It also includes provisions for civil penalties up to $10,000 and criminal penalties up to $20,000 for noncompliance.
In situations where the original plant/wood source is not known by the importer, the law requires listing of the name of each species of plant/wood that might have been used to produce the products and the name of each country from which the plant/wood might have been taken. This particular requirement raises serious concerns as the information submitted would be based, in many cases, on pure speculation. It also raises the question: what value does this bring to government enforcement agencies?
There is currently no means for filing this information electronically. This would require filing of paper declarations at time of entry, rolling back efficiencies gained by electronic interface with Customs. American Shipper Magazine reported "Customs estimates that filing paper entries delays shipments anywhere from one to three days depending on transport mode. Shippers that do not have all the answers for the paperwork at time of arrival can expect their goods to sit even longer".
The push back of the implementation date is a victory to the lobbying efforts of the trade community, including importers and customs brokers alike. The National Customs Brokers and Forwarders Association of America (NCBFAA) recently held their annual Government Affairs Conference in Washington, D.C. The Lacey Act Amendments were one of the focal points of the Conference. CVI president Mike Coleman participated in the conference and lobbying efforts related to this and other issues facing the industry. Coleman commented, "The pervasive lack of understanding by our representatives of the international trade environment can turn well-meaning legislation into commercial disasters. It is important for us to take the time to inform them of the realities of international trade, its importance to the U.S. economy, and the impact their actions have on our businesses".
In all likelihood the implementation will be delayed again because, at present time, there is no reasonable or efficient method in the pipeline for collecting and analyzing this data. When implementation begins, it will most likely be accomplished on a HTS chapter-by-chapter basis. CVI is monitoring the implementation of the declaration requirement and will be contacting affected customers directly so that they will be adequately prepared.
For more information, please contact your CVI customer service representative, Venetia Huffman, Vice President of Operations & Compliance, or Mike Coleman, President.