The Lacey Act is a United States federal conservation law that was enacted in 1900. Initially, the Lacey Act was designed to protect wild game and birds. At the time, illegal commercial hunting threatened many species in the United States. The law made wildlife poaching a federal crime, prohibited the transport of illegally captured species, and outlawed the introduction of non-native species into native ecosystems.
In 2008, the Lacey Act was amended to include plants and plant products, which includes wood. As it relates to the Hardwood industry, the Lacey Act generally deals with issues having to do with illegal logging. Fortunately, in the United States, illegal logging is not a common practice. Unfortunately, the same cannot be said for the rest of the timber-producing areas of the world. Because of this, the Lacey Act is an attempt by the United States to reduce the impact of illegal logging world-wide. Specifically, the legislation prohibits the import, sale or trade of illegally harvested wood and other forest products in the United States.
As a Hardwood professional, you need to know how the Lacey Act impacts your business, and understand the steps that must be taken to ensure compliance. For example, Lacey states that all wood flooring imported into the United States must include an import declaration. Whether a product must be accompanied by a declaration is determined by three questions:
1. Does it contain plant material? Wood is considered plant material, so the answer to this question is yes. Which leads to question
2. Is it a formal entry? If it is being imported into the United States, as opposed to hand-carried, the answer to this question is yes. Which leads to question 3.
3. Is the Harmonized Tariff Schedule (HTS) code on the Schedule of Enforcement of the Plant and Plant Product Declaration? For Hardwood, the potential HTS code products could include:
- Wood in the rough
- Wood sawn or chipped lengthwise
- Sheets for veneering
- Plywood, veneered panels
If any of these products are included, the answer is yes. Which means that an import declaration is required.
Import declarations can be filed both electronically and by hard copy. Both forms require the same information:
- Estimated date of arrival
- Entry number
- Container number
- Bill of lading
- Merchant Identification (MID) number
- Importer name and address
- Purchaser name and address
- Description of merchandise
- Harmonized Tariff Schedule (HTS) number
- Material value
- Scientific plant name
- Country of origin
- Quantity of material
All wood imported into the United States must comply with the Lacey National Consensus Due Care Defense Standard as well. The intent of this standard is to identify measures that companies can take to demonstrate due care when importing wood.
There is no clear definition of what constitutes “due care” compliance under Lacey, but in an extremely simplified explanation, it requires a complete chain of custody for the wood being imported, starting at the forest of origin.
There are guidelines available to help companies comply with Lacey Due Care requirements. One of the most comprehensive is available at: www.laceyduecare.com/Lacey_Due_Care_Standard_Technical_Requirements_Summary.pdf.
It is important to note that all parties in the supply chain are subject to penalties and fines for noncompliance with Lacey. In addition, fines can be assessed for both civil and criminal violations. The maximum civil fine is $10,000 per violation, with possible imprisonment of one year. The maximum criminal misdemeanor fine is $10,000 per violation, with possible imprisonment of one year. The maximum criminal felony fine is $20,000 per violation, with possible imprisonment of five years.
The best way to ensure the materials you are using comply with Lacey is to ask for a chain of custody for all wood used, especially those species that are not native to the United States. In this way, you can refuse to use any wood that does not have a chain of custody, and will be practicing due care as required by Lacey.
It is also important to note that Lacey compliance may change from time to time, and it is your responsibility as a Hardwood professional to stay informed. For specific and up-to-date regulations regarding the Lacey Act, visit www.fws.gov/international/laws-treaties-agreements/us-conservation-laws/lacey-act.html.
The National Wood Flooring Association has more information about the Lacey Act available through NWFA University, an online training platform that is convenient and affordable. Learn more at nwfa.org/nwfa-university.aspx. The National Wood Flooring Association is a not-for-profit trade association whose mission is to unify and strengthen the wood flooring community through technical standards, education, networking, and advocacy. Contact the NWFA at 800-422-4556 (USA and Canada), 636-519-9663 (international), or www.nwfa.org.