If you are involved with the importation of empty wood packaging and pallets into the United States, you may have heard that federal officials began requiring new custom declarations beginning October 1st, 2021.
As part of its enforcement of the Lacey Act, U.S. Customs & Border Protection has started requiring declaration forms for empty, new wood packaging being imported into the United States.
The Lacey Act is focused on reducing the trafficking of illegally sourced agricultural products into the country. The requirement does not apply to any pallet used under a load unless that product itself requires documentation under the Lacey Act. This new requirement also exempts all used or recycled wood pallets and packaging from the documentation process regardless if it is under load or not.
The good news is that most pallet companies won’t have to deal with reporting requirements under the Lacey Act. Given current trade flows this law will mostly impact finished pallets imported across the Canadian border. Brent McClendon, president of the National Wooden Pallet & Container Association (NWPCA) stated, “Seventy-five percent of all wood pallets that come into the United States empty are coming from Canada.” The Canadian Wooden Pallet & Container Association is working with its members to coordinate reporting requirements, especially as it relates to identifying the scientific name of the wood used in a pallet as well as the volume of wood material.
The Lacey Act requires “due diligence” from importers to know the source of the lumber and ensure compliance with both U.S. and foreign laws. The Lacey Act has covered lumber itself for years ever since the 2008 Farm Bill. That revision called for a gradual process to add extra agriculture products, and wood pallets and wood packaging materials (boxes, crates and OSB) are included in this sixth update.
Why this law? Well, illegal logging is big business. Karen Williams, compliance specialist on the Lacey Act Program for the U.S. Department of Agriculture, explained the scope of the challenge. She said, “Illegal logging globally is estimated to be valued at $52-$157 billion dollars per year, which makes it the most profitable natural resource crime.”
The primary destination for most illegally sourced timber is China. And the U.S. government is working hard to keep illegal timber out of the country. Williams stated, “Our goal is to eliminate illegal logging and your declaration helps us accomplish this.”
A pallet producer in a foreign country covered by the requirement would need to provide some key information on the pallets shipped in as actual merchandise. See Chart 1.
Usually, the compliance and reporting process is covered by the broker. This is normally handled through an electronic reporting system, either ACE run by U.S. Customs and Border Enforcement or the APHIS LAWGS system.
If an importer doesn’t know the species of every board on every pallet, it must declare all the possible range of species and countries of origin. A key to this process is to have a good relationship with the producer and its supply chain.
For more information on the Lacey Act requirements for pallets and wood packaging, visit https://tinyurl.com/33mrbtvk.
Chart 1
What information do I need to provide my broker?
• Scientific plant names
• Country of harvest
• Value of the product
• Quantity of plant material in the shipment in metric units of measure
• Importer name/address
• Consignee name/address
• HTSUS code
• Bill of lading
• Container number
• Manufacturer Identification Code (MID)
