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1. What is the Lacey Act?
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The
Lacey Act is the oldest wildlife
protection statute in the U.S.,
passed originally in 1900 and
significantly amended in 1981. But
on May 22, 2008, the Lacey Act was
amended to expand the protection to
a broader range of plants and plant
products as part of Section 8204 of
The Food, Conservation, and Energy
Act of 2008. The amendment also
makes it unlawful to import, export,
transport, sell, receive, acquire,
or purchase in interstate and
foreign commerce of plants and plant
products that are under legal
protection in the US and any foreign
laws. Most importantly from a global
trade management perspective, it is
now unlawful to import certain plant
and plant products without an import
declaration. The declaration will
include the scientific name of the
plant, its genus and species,
country of harvest, quantity of the
plant, value of the importation and
if paper and paperboard products
containing recycled content, the
average percentage of recycled
content without regard for species
or country of harvest.
To facilitate the
import process and
subsequent enforcements by APHIS
(Animal and Plant Health Inspection
Service of the U.S. Department of
Agriculture), CBP (U.S. Customs and
Border Protection) has agreed to
update its electronic entry system (ABI)
to support the capture of these
reporting declarations
electronically. Starting April 1,
2009, CBP has confirmed that its ABI
(Automated Broker Interface) system
is prepared to receive electronic
declaration as part of is Lacey Act
enforcement, based on APHIS phase-in
periods of targeted HS chapters
between April 1, 2009 thru September
30, 2010. |
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2. What products are affected?
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As published in the Federal Register in
February 3, 2009, the following phases are defined by APHIS for
enforcement purposes: |
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Phase 2 (April 1, 2009 - September 30,
2009): |
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HTS Chapter 44 (Wood & Articles of Wood) |
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4401 (Fuel Wood) |
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4403 (Wood in the rough) |
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4404 (Hoopwood; poles, piles, stakes) |
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4406 (Railway or tramway sleepers) |
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4407 (Wood sawn or chipped lengthwise) |
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4408 (Sheets for veneering) |
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4409 (Wood continuously shaped) |
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4417 (Tools, tool handles, broom handles) |
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4404 (Hoopwood; poles, piles, stakes) |
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4418 (Builders’ joinery and carpentry of
wood) |
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Plus Phase I’s
requirements
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Phase 3 (October 1, 2009 – March 31, 2010): |
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HTS Chapter 44 (Wood & Articles of Wood) |
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4402 (Wood charcoal) |
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4412 (Plywood, veneered panels except
44129906 and 44129957) |
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4414 (Wooden frames) |
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4415 (Packing cases, boxes, crates, drums) |
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4419 (Tableware & kitchenware, of wood) |
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4420 (Wood marquetry; caskets; statuettes) |
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Plus Phase I and II’s
Requirements |
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4704 (Chemical wood pulp, sulfite) |
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4701 (Mechanical wood pulp) |
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Chapters 4405 - 4416 (Particle,
Fiberboards, Barrels) |
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Chapter 4701 (Wood Pulp) |
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Phase 4 (April 1, 2010 –
September 30, 2010): |
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HTS Chapter 44 (Wood & Articles of Wood) |
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4421 (Other articles of wood) |
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4802 (Uncoated writing paper) |
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HTS Chapter
66 (Umbrellas, Walking Sticks, Riding crops) |
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6602 (Walking sticks, whips, crops) |
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HTS Chapter 82 (tools, implements) |
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8201 (Hand tools) |
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HTS Chapter 92 (musical instruments) |
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9201 (Pianos) |
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9202 (Other Stringed Instruments) |
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HTS Chapter 93 (Arms and ammunition) |
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9302 (Revolvers and pistols) |
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93051020 (Parts and accessories for
revolvers and pistols) |
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HTS Chapter 94 (Furniture, etc.) |
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940169 (Seats with wood frames) |
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HTS Chapter 95 (Toys, games, &
sporting equipment) |
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950420 (Articles and accessories for
billiards) |
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HTS Chapter 97 (Works of art) |
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9703 (Sculptures) |
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Plus Phase I, II,
and III’s Requirements |
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Future Products
Under Consideration, Post-September 1, 2010 |
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HTS Chapter 48 (Paper & articles of) |
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HTS Chapter 66 (Umbrellas, Walking
sticks) |
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HTS Chapter 82 (Tools) |
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HTS Chapter 89 (Ships, boats) |
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HTS Chapter 92 (Musical Instruments) |
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HTS Chapter 93 (Arms and ammunition) |
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HTS Chapter 94 (Furniture) |
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HTS Chapter 95 (Toys, games, and
sporting goods) |
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HTS Chapter 96 (Brooms, pencils,
buttons) |
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3. What are the declaration requirements and
when will it be effective?
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Beginning December 15, 2008, an Importer
must submit a declaration by the time of importation (i.e., entry) for
affected products with: |
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Scientific name of plant (including genus
& species) |
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Value of importation |
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Quantity of the plant |
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Name of the country in which the plant
was harvested |
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For paper and paperboard products with
recycled content, state the average % recycled content without regard
for species or country of harvest |
4. How does this impact your company’s
imports?
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If your company imports any of the defined
HTS chapters listed within the Federal Register, as summarized above,
you must compile the necessary declaration requirements and be readied
for reporting them along with your entry declaration. Additional
wood-based products are likely to be included in future phases.
Some key business process considerations include: |
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How would you identify your set of
products that may be subjected to the Lacey Act declaration
requirements? |
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How would you complete the product
declaration requirements for entry declaration and audit purposes? |
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How would you validate and verify the
product declaration requirements with your shipment transaction? |
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How would you then communicate the
product declaration requirements to prepare entry? |
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5. How will Management Dynamics’
Trade
Content and
Trade Automation solutions help Importers?
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For each of the business process
considerations listed above, Management Dynamics has the right solution
to meet your Lacey Act declaration needs: |
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With updates to our
Global Trade Content, the
industry’s most powerful source of trade compliance information, an
Importer will be alerted and then respond to the Lacey Act declaration
requirements when classifying goods for importation into the U.S. |
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With our
Trade Import solution, an
Importer can compile the details of the Lacey Act declaration by
products for reusability and audit purposes. |
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During your shipment process, products
that are on hold due to Lacey Act declaration requirements will provide
the necessary alerts to manage exceptions. |
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A confirmed shipment could then be
electronically transmitted to your brokers or filing services to prepare
the entry with the Lacey Act declaration details. |
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Best-in-Class companies are integrating Management Dynamics’ Trade
Import solution
into their enterprise procurement software in order to capture and
review a complete audit trail of all import transaction activities
from pre-entry to Customs to post-entry.
Download our white paper, “Automating the Import Supply Chain”
for details. |
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Additional Resources:
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For each of the business process
considerations listed above, Management Dynamics has the right solution
to meet your Lacey Act declaration needs: |
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