Could you please tell us a little about the Lacey Act?
– The Lacey Act encompasses many issues; I will only mention a few key points. This act prohibits the illegal trade of plants or plant products (including wood and wood products) from any U.S. state or from foreign countries into the United States. The act requires importers to declare the origin and species of wood contained in their products; and establishes penalties for violations of this act. According to the Lacey Act, acts considered illegal include: Stealing plants; harvesting plants from officially protected areas, such as national parks or reserves; harvesting plants from “officially designated areas” under national law or regulation; harvesting plants without or without authorization…
What should businesses be aware of when required to file declarations under the Lacey Act?
– The Lacey Act requires importers to declare all shipments of plants or plant products. The declaration includes: 1- The scientific name of all plant species used in the product. 2- The country of origin. 3- The quantity and method of measurement. 4- The value. Businesses should also note that if multiple species are used to produce the product, all of them must be declared. The purpose of this declaration is to increase transparency in the timber trade and help the U.S. government strengthen the effectiveness of its laws.
* Are there any cases where declaration is exempted, sir?
– Yes. To allow the tax authorities time to adjust, the Lacey Act includes special chapters for complex products that often use materials from multiple countries or species. If the country of origin or species is unclear for the shipment, the Act allows for a declaration with the most appropriate species or country of origin. This relaxation will largely be reduced after the government reviews the declaration requirements within two years. For declarations of paper products from recycled pulp, it is also not necessary to declare the species and origin of the recycled material. However, the declaration must include the average percentage of recycled material, species, and original information of non-recycled plant material, as well as their percentage in the product. Notably, importers are not required to declare plant material used for packaging such as cardboard boxes or pallets, unless these packaging materials are actually imported goods…
* Can you tell us more about the penalties under the Lacey Act?
– According to the Lacey Act, businesses wishing to export timber to the US market must declare the origin, country of origin, and tree species used in the product. The Lacey Act imposes severe penalties for illegal timber trade violations. Trading in illegally sourced timber can result in fines of $500,000 for businesses and $200,000 for individuals; the highest penalty is imprisonment. For falsely declaring the origin of imported timber, businesses may be fined $10,000, imprisoned for up to five years, and in all cases, the goods will be confiscated…
* In your opinion, what should export processing enterprises do in light of the Lacey Act regulations?
– Businesses exporting timber in Binh Dinh should gradually require timber suppliers to obtain reliable timber certifications such as FSC and PEFC (globally recognized certifications for responsible forest management), avoiding the purchase of timber of unknown or untraceable origin. Businesses should ask suppliers questions such as: What is your supply chain like? Is it traceable back to that forest? Are there clear and legal documents? At the same time, businesses themselves must have internal policies and procedures to trace the origin of timber, verify its legality (especially when purchasing products from areas with high levels of illegal logging), and have a plan to assess timber origin and apply for third-party-issued certificates of legal timber origin.
In my opinion, methods for tracing the origin of timber can involve independent research on suppliers (via the internet) or through other business relationships. Illegal timber products are often accompanied by forged documents. Therefore, evaluating suppliers and building trust to obtain legally sourced timber is crucial. Simultaneously, businesses need a risk assessment system to address potential violations and develop contingency plans. And, importantly, businesses must immediately adapt their raw material procurement and supply chain management (FSC-CoC) systems to comply with the Lacey Act…
Thank you, sir!
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The Lacey Act was introduced by the Iowa State Legislature in 1900 and subsequently signed into law by U.S. President William McKinley on May 25, 1900. It was later amended in 1969, 1981, 1988, and most recently on May 22, 2008. The amendment dated May 22, 2008, expanded the scope of the law to include plants and plant products; specifically, Section 8204 concerns the “prevention of illegal logging.” This amendment took effect on December 15, 2008. However, the period from December 15, 2008, to April 1, 2010, was considered a “trial period,” during which filing of the declaration was not mandatory for businesses. Starting from April 1, 2010, submitting the new tax return officially became mandatory… |
- Viet Hien (Perform
