U.S. Lacey Act update: quick guide for importers

The Lacey Act is a cornerstone of U.S. legislation aimed at combating illegal trafficking in plants, wildlife, and timber. Originally enacted in 1900, it has undergone significant amendments to address evolving environmental and trade challenges. For importers, understanding the Lacey Act declaration is essential to ensure compliance and maintain ethical sourcing practices.

What is the Lacey Act?

The Lacey Act is a U.S. law designed to protect plants, wildlife, and ecosystems by prohibiting the trade of illegally sourced materials. It plays a pivotal role in preventing illegal harvesting, deforestation, and wildlife trafficking, making it one of the most comprehensive environmental protection laws in the world.

Expansion of the Lacey Act

One of the most notable amendments came in 2008, when the Lacey Act was expanded to include plants and plant products. This amendment broadened the law’s scope to address global concerns about illegal logging and timber trade. As a result, in addition to health of animals regulations, it now covers a wide range of products, such as furniture, paper, and other plant-based goods, reflecting its commitment to environmental conservation and sustainable practices. The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) has been responsible for enforcing the plant import declaration requirements since April 2009.

Phase VII of the Lacey Act in 2024

The Lacey Act governs a diverse array of goods, particularly those made from plants and wildlife. With the implementation of Phase VII of the Lacey Act provisions on December 1, 2024, declarations will now be required for all remaining plant product Harmonized Tariff Schedule (HTS) codes that are not 100-percent composite materials. This phase includes an extensive range of items, such as industrial or medicinal plants, handbags, plywood, laminated wood, tools, matches with natural wood stems, products of natural cork, products of bamboo and rattan, footwear, and more.

Previously covered items include timber, some furniture, essential oils, wood cases and trunks, and woodwind instruments and their parts and accessories. It is essential for importers to review the full list of products included in Phase VII on the Federal Register, noting exemptions such as HTS code 3301295142, which pertains to items made from a common cultivar.

What are Lacey Act compliance requirements for importers?

Declaration requirements

Importers are required to submit the Plant and Plant Product Declaration Form (PPQ 505) to the U.S. Department of Agriculture. This form includes critical details about the imported goods, such as the scientific name of the plant, the quantity and value of the shipment, and the country of harvest. Providing this information helps authorities trace the origins of materials and ensures they are legally sourced, fostering greater transparency and accountability in the supply chain.

Due diligence practices

To comply with the Lacey Act, importers must exercise due diligence in their supply chains. This involves sourcing materials from reputable suppliers, verifying the legality of harvested materials, and maintaining accurate and comprehensive documentation. Requiring importers to affirmatively declare that their imports are legal ensures that they take steps to confirm their products do not contribute to deforestation or illegal logging. This process helps level the playing field for legitimate businesses and reduces demand for illegally sourced wood.

Common challenges

Lacey Act importers often face challenges in meeting the Lacey Act’s requirements. Identifying high-risk areas for illegal sourcing is one of the most significant hurdles, as is ensuring supply chain transparency. Additionally, adapting to changes in regulations and enforcement priorities can be complex, requiring importers to stay informed and proactive in their compliance efforts. APHIS has been proactive in preparing stakeholders for these challenges by hosting webinars, publishing notices, and engaging directly with importers to provide clarity and guidance.

Penalties for non-compliance

Violations of the Lacey Act can result in severe penalties, including civil fines, criminal charges, and the forfeiture of goods. High-profile cases have highlighted the financial and reputational risks of non-compliance. Companies caught violating the act have faced substantial fines and public backlash, underscoring the importance of adhering to its provisions. These consequences serve as a reminder of the act’s significant role in promoting sustainable and ethical trade practices.

Importers can ace the Lacey Act

The Lacey Act represents a critical effort to promote sustainable trade and combat illegal practices in the global supply chain. For importers, understanding and complying with this law is not just a legal obligation but a commitment to environmental stewardship. By navigating its requirements with diligence and care, businesses can play a vital role in preserving the world’s natural resources while safeguarding their own operations from legal and reputational risks.

Importing. It’s what we do.