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As of December 1, 2024, Phase VII of the Lacey Act Program will go into effect, marking an important milestone for importers of plant and wood products into the United States. Phase VII introduces new Harmonized Tariff Schedule (HTS) codes for products that now require a Lacey Act declaration, adding further accountability in the global fight against illegal logging and promoting sustainable sourcing in supply chains.
What is the Lacey Act?
The Lacey Act, one of the oldest conservation laws in the United States, was originally enacted in 1900 to prevent unlawful wildlife trafficking. In 2008, amendments to the Act expanded its scope to address illegal logging and trafficking of plants, especially those harvested unsustainably. Since then, the Lacey Act has provided the legal framework for keeping illegally sourced plant and wood products out of U.S. supply chains, requiring specific import declarations for covered items.
These amendments are crucial in combating deforestation, biodiversity loss, and the revenue losses that illegal logging inflicts on law-abiding businesses.
What Phase VII Entails
The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (USDA-APHIS) is responsible for implementing and enforcing the Lacey Act requirements. Phase VII, the latest phase of implementation, includes the following key updates:
New HTS Codes: An expanded list of HTS codes now requires import declarations, specifically those covering additional wood, wood products, and plant-based materials.
Data Requirements for Declarations: For items flagged with these HTS codes, importers will need to declare the following:
The species name and genus of each plant product
The country of harvest, distinct from the manufacturing country
The value and quantity of each declared item
These details are vital for APHIS to verify that imported materials were legally harvested and do not contribute to illegal trade practices.
Implications for Importers: No Grace Period After December 1
Starting December 1, 2024, importers need to ensure they have accurate information from suppliers about the origin and type of plant products. The Lacey Act program does not provide a grace period for obtaining this information, so it is crucial to begin gathering it now.
Importers should:
Review New HTS Codes: Check if their products fall under the newly added codes.
Communicate with Suppliers: Supply chain transparency is key. Importers should reach out to suppliers to collect information on the species, genus, and country of harvest for applicable products.
Prepare Declarations: Ensure that all documentation is complete, as incomplete or inaccurate declarations could lead to delays and penalties.
Exemptions and the De Minimis Exception
Certain products remain exempt from Lacey Act declarations. Common food crops, non-tree cultivars, scientific specimens, and plants for planting are not subject to declaration requirements. The de minimis exception also applies for products containing no more than 5% plant material, provided the total plant material weight in each product does not exceed 2.9 kilograms.
It’s important to note, however, that exemptions do not apply to protected plant species regulated under CITES or the Endangered Species Act.
What’s Next? Phase VIII on the Horizon
Following Phase VII, APHIS is planning Phase VIII, which will focus on composite materials that are not 100% plant-derived. As with Phase VII, we can anticipate more refined definitions to aid importers in their compliance efforts. Importers handling composite wood and plant products should be on the lookout for further updates in the coming years.
Bottom Line for Businesses
With Phase VII of the Lacey Act set to take effect in December 2024, now is the time to ensure compliance by gathering accurate information from your suppliers. This proactive step will help avoid delays and potential penalties as you navigate these new requirements.
Our firm is experienced and ready to help with all your compliance needs. Whether it's specific guidance on the Lacey Act, the Endangered Species Act (ESA), U.S. Department of Agriculture (USDA) regulations, U.S. Fish and Wildlife Service (USFWS) regulations, U.S. Customs and Border Protection (CBP), or another government agency, we’re here to handle it for you.
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