Within the 688 page “Farm Bill of 2008” which was passed in June, 2008, is a provision that requires importers to file a new form covering the importation of wood, plants and products made with wood or plants. The declaration, which can be filed electronically, must list the species and country of origin of the plant or wood from which the product was made. The provision went into effect on December 15, 2008 but enforcement has been delayed and will be in stages. The Department of Agriculture recently announce the first four initial phase-ins. All the items covered in these phases are classified in Chapters 44, 47, 48 and 94 of the US Harmonized Tariff. Enforcement will begin May 1, 2009, with regard to products classified under the following tariff headings;

4401--Fuel wood
4403-- Wood in the rough
4404--Hoopwood, poles, posts, stakes
4406--Railway and tramway sleepers
4407--Wood sawed or chipped lengthwise
4408--Sheets for veneering
4409--Wood continuously shaped
4417--Tools, tool handles, broom handles
4418--Builders' joinery

First Phase: Until March, 2009, importers will at their option be allowed to file thee declaration. This period should be used as an opportunity to develop systems for obtaining and filing the required information.

Second Phase: Commencing September 30, 2009, declarations will be required for for plant and wood products that that are minimally processed or of less complicated composition such items as lumber, tools and wood carpentry;

Third Phase: Commencing March 31, 2010, filings will be required for the above plus products that are more processed or complex, such as particle board and wooden tableware.

Fourth Phase: Commencing commencing September 30, 2010, this phase covers the above plus more highly processed articles, including paper, paperboard, and wooden furniture.

Agriculture has stated that declarations will not be required for goods covered by infomal entries, goods covered by carnets or imported under Transportation and Exportation entries, and goods covered by foreign trade zone and warehouse entries, among others.

WHAT IS COVERED

It is quite likely that you will be affected as goods potentially covered by the law are imported under about one-third of the thousands of different provisions of the US tariff. Plants and plant products as defined by the law The coverage is extensive as “plants” are any wild members of the plant kingdom, including roots, seeds, plants or products made of them and includes trees taken from either natural or planted forest stands. Thus, all products derived from wood appear to be covered, as are most products made from plants--everything from raw lumber to furniture to books and paper labels. Rayon fabric might also be included.

Recently, Agriculture announced two major exemptions. One covers "common cultivars." This phrase is defined as plants that has been developed through selective breeding or similar means which are cultivated on a commercial scale. The second is for "common food crops" which are those cultivated on a commercial scale for human or animal consumption. The exemption applies to roots, seed, and parts of these plants as well as products made from the. The exemption does not apply to plants listed on any national or international list of protected species.

WHAT IS REQUIRED

The law and essentially requires the importer to file a declaration on entry listing:

• The scientific name of any plant imported or used in the plant product. If the plant product is unknown, the name of each species that could have been used would have to be listed.
• The country of origin. If the plant is commonly taken from more than one country, it is likely that the name of all countries where it could have been taken would have to be listed.

• Where a paper or paperboard product includes a recycled plant product, the average percentage of recycled content, without the need to state species or country of origin. Where the product also contains non-recycled plant material, the country of origin and species must be named.

• The value of the plant product and the quantity, including the unit of measure used.

EXEMPTION FOR PACKAGING

The provision excludes “packaging material,” but that is limited to materials used to support, protect or carry another item, unless that packaging material is itself being imported. Thus, paper advertising flyers and hangtags would be considered to be “plant products.”

The Department of Agriculture has been granted broad authority to exempt various products from the requirements and there is talk that it would like to exempt fabrics made of plant material as well as paper labels, but as of now that is only talk.

PENALTIES FOR VIOLATION

While the importation of any plant product taken in violation of the laws of its country of origin or in violation of CITES (the Convention against Trade in Endangered Species) has long been prohibited, there are now civil and for intentional violations, criminal penalties for violations of the declaration requirements or misstatement of fact in it. Further, the lack of the declaration could lead to delays in Customs clearance, recalls, and penalty actions under other Customs laws.

We strongly suggest that you review your product line and the items accompanying your merchandise and exercise due diligence to determine if you are covered by this law. If so, it is time to advise your suppliers of the law' s requirements and to exercise (and can document that you have exercised) reasonable care to insure that the information given to you by them (or often, by your suppliers' suppliers) is accurate.