Historical Legislation Takes a Modern Turn

The Lacey Act, a cornerstone of U.S. environmental legislation since 1900, is evolving. Initially targeting bird poaching, the Act has undergone significant changes over the years, most notably in 2008 with the Farm Bill amendments. These updates broadened the scope to include a variety of plants and plant products, tying in closely with corporate environmental, social & governance (ESG) strategies. The essence of the Act is to ensure the legality of harvested plants and plant products upon importation.

Introducing Phase VII: What You Need to Know

With Phase VII on the horizon, the Lacey Act is extending its reach further. This phase mandates Import Declarations for all plant product Harmonized Tariff Schedule (HTS) codes not made of 100% composite materials. This will affect a diverse range of imports, including furniture, essential oils, and cork—items previously exempt from such declarations. As a result, importers of these products will now be required to comply with the new regulations.

APHIS Prepares to Roll Out New Requirements

The Animal and Plant Health Inspection Service (APHIS) is diligently reviewing HTS codes to finalize the list of materials and products that will fall under Phase VII’s umbrella. Later in 2023, APHIS plans to announce the affected HTS codes in the Federal Register, giving importers a six-month window to prepare for the new declaration requirements.

Declaration Process and Compliance

As it stands, a Lacey Act declaration is necessary at the point of shipment arrival within U.S. borders. The majority of importers submit their declarations through the U.S. Customs & Border Protection Automated Commercial Environment (ACE) system. Declarations must be filed or signed by the Importer of Record, or an authorized agent, backed by the proper Power of Attorney. An alternative for filing declarations, particularly for Foreign Trade Zones (FTZs), is the Lacey Act Web Governance System (LAWGS), which also accepts large data uploads.

Proactive Measures for Importers

While the full list of new HTS numbers is pending, importers can take proactive steps to ensure they have the necessary processes in place for data gathering and declaration filing. These preparations are crucial, as non-compliance with the Lacey Act can result in severe civil or criminal penalties. Importers are encouraged to establish robust compliance processes now to avoid potential fines and disruptions in the future.

Ensuring Compliance Ahead of Changes

With the expansion of the Lacey Act’s scope, importers must stay vigilant and informed. Although electronic submissions are preferred, paper declarations are still accepted for those with lower volumes. The upcoming changes underscore the importance of environmental accountability in global trade, and importers must align their practices accordingly to maintain compliance and support sustainable trade initiatives.