Navigating New Regulatory Changes
Staying informed about trade regulatory updates is essential for maintaining compliance and avoiding costly disruptions. One such regulation, the Lacey Act, has been pivotal in promoting sustainable trade practices by combating illegal logging and ensuring plant-based products entering the U.S. market are legally sourced. As December 2024 approaches, Phase VII of the Lacey Act introduces new requirements that importers must prepare to stay compliant.
Understanding Phase VII
Phase VII marks a significant expansion of the Lacey Act’s declaration requirements, mandating declarations for all remaining plant product Harmonized Tariff Schedule (HTS) codes that are not entirely composite materials. This change encompasses a broader array of products, including furniture, cork, and certain essential oils, which previously fell outside the Act’s reporting scope.
What Importers Need to Prepare For
If your imports include goods with plant materials and you haven’t filed Lacey Act declarations before, this phase may introduce new obligations. Importers should begin by reviewing their supply chains and identifying products impacted by the expanded scope. Ensuring accurate documentation and understanding the necessary data for filing declarations will be required. Detailed guidance on declaration requirements can be found on the Information to Include on a Lacey Act Declaration page provided by APHIS.
The Role of Composite Materials
Composite materials, such as paper, particleboard, and medium- to high-density fiberboard (MDF and HDF), remain exempt under Phase VII. These materials involve plant products that have been chemically or mechanically processed before being recomposed into new forms. Importers should confirm whether their goods fall under these exemptions to avoid unnecessary declarations.
Filing a Declaration
Importers can electronically file declarations using one of two primary platforms:
- Automated Commercial Environment (ACE): ACE allows importers to electronically submit required data to U.S. Customs and Border Protection (CBP) and partner agencies, including the APHIS Lacey Act Program through us, Edward J Zarach & Associates, your Customs House Broker.
- Lacey Act Web Governance System (LAWGS): LAWGS serves as an alternative for importers not filing through ACE, primarily for small-scale operations. Importers using both ACE and LAWGS must indicate this setup in their ACE submissions.
While electronic filing is strongly encouraged, paper forms are still available for smaller importers through the APHIS website.
Consequences of Non-Compliance
Compliance with the Lacey Act is mandatory, as failure to adhere to declaration requirements can result in civil and criminal penalties. Civil penalties include fines and forfeiture of goods, while criminal penalties may involve substantial fines or imprisonment, particularly for violations involving goods of significant market value.
Where to Find More Information
Importers can access comprehensive information and assistance from the APHIS Lacey Act program by visiting the APHIS Lacey Act website.
Phase VII of the Lacey Act, set to take effect in December 2024, represents a pivotal shift in regulatory requirements for plant-based products. By understanding these changes, prioritizing compliance, and leveraging available resources, importers can ensure seamless operations within the regulatory framework.
Edward J. Zarach & Associates is here to help you navigate these updates, ensuring your supply chain remains compliant and efficient. Need help navigating Phase VII of the Lacey Act? Contact Edward J. Zarach & Associates today for expert guidance on compliance and seamless plant material imports.