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Green Blog: Elizabeth Baldwin

Lacey’s Broad Scope
The Lacey Act is not just about guitars, although Gibson’s case has certainly gotten guitar owners concerned. The 2008 Lacey amendment applies to any plant or plant product. We’re not just talking flooring and furniture here.

Lacey covers the burl on a fancy car’s dashboard and the rubber tires on bikes—or for that matter, any machinery with a rubber gasket. There’s instant lemonade (pineapple pulp), maple syrup and chewing gum. We’re looking at clothing containing rayon as well as pet shampoo (pine tar). Books and paper products might be obvious, as well as wine corks, but did you know lipstick contains wood rosin, so that’s also covered by Lacey?

Many Americans might think, “Well that’s good it covers so many items. If they are using illegally logged components then they deserve to be cracked down on!” Yet that very scope means Lacey isn’t even being fully enforced.

Justice and APHIS (the Animal and Plant Health Inspection Service) and the other governmental organizations are stretched thin—despite their best efforts, APHIS can’t even process the declarations they receive for the handful of products for which they are currently requiring submissions. Although Lacey requires APHIS to collect declarations for thousands of products, they aren’t doing so at this time. (Ironically, doesn’t that mean imported chewing gum or lipstick could be illegal since Congress requires a Lacey declaration upon entry and the form it isn’t being collected?)

Lacey also has excessive, and unfortunately, really meaningless data requirements for species and genus names. Wood is traded under a commercial or trade name, but is rarely purely a single species of tree. However Lacey says that if you do not know exactly what species are in your product, you are require to list out any possible species that could be in there.

Wood professionals know that a commercially marketed species such as “red oak” can contain dozens of different species. The NHLA (National Hardwood Lumber Association) has traditionally marketed certain species purely under an “spp” definition—Carya spp., for example, is the traditional definition of both the pecans and hickories. But Lacey doesn’t allow Carya spp. as a valid entry, which can make many declarations really rather absurd.

For example, say your leather furniture is made with a mixed U.S. hardwood lumber core. Your mill may use poplar, hickory, red oak, white oak or any number of other species, depending on what’s available at the right price at the right moment. They may buy from brokers specializing in Southern material, or get a shipment from the Appalachian region one week and a Northern state the next. You never know what they will use from week-to week. Consequently, for every single entry you need to list every possible scientific name for every possible species they could use. That could be 100 different species since what is marketed as “red oak” could be a blend of 30-50 different Quercus species.

APHIS has tried to be practical in a few areas. Although it’s not exactly what the letter of the law requires, APHIS has wisely created a special category for HDF and a few other products that are truly impossible to clearly declare—trying to figure out which grain of sawdust came from which species simply isn’t feasible. They even have a category for “driftwood” now. But they don’t accept “spp” for mixed species of the same genus. The idea is that you want to be able to track if the product is Quercus rubra or Quercus alba. But if you’re importing plywood made of meranti, to be truly accurate, you might have to list over 250 different species, which makes it truly meaningless data.

Next week we’ll look at efforts by a coalition seeking to amend Lacey so that it helps prevent illegal logging while not preventing commerce, trade, and the growth of an already struggling economy. The Lacey Act is a vital law that has protected wildlife and the environment for over 100 years. And the 2008 amendments were added with the best of intentions. But there were a lot of unintended consequences and questions raised by those amendments that mean there are ways we can make a good law even better.
Dear Elizabeth,

I have been reading your blog for a while and I really enjoy it. Thank you for all the information you are posting here and for taking the boredom out of the 'Green' aspect of floors.
I did follow the links in your last post and it really is a shame what is going on with Gibson right now. It seems as though the intention is great until the law is put to the test. We wouldn't need all these laws if everyone were doing the right thing, right?
My mother always said: Be good. That's all you need to know.
Anyway, question: how does all of the particle board products from China fall into play here (the ones with all the resins in them and the paint that starts curing in our homes when we open the boxes)? Do they need to specify what wood they use?
Comment By Avi Hadad At 12/7/2011 12:26 PM
Thanks for the kind words, much appreciated.

Regarding the particleboard question specifically: your entry requirements depend on the product. For example, if you are bringing in a sheet of MDF/HDF or OSB, there is no declaration requirement because HTS codes 4410 and 4411 have not yet been placed on the schedule.

However, if the MDF or OSB is a COMPONENT of a product--flooring core, cabinetry core, furniture core that enters under a scheduled code, then it does have to be declared.

That said, because the particles that make up MDF and OSB and other type products are generally too hard to identify, APHIS is currently accepting them as 'Special' categories, so they would be entered as 'Special OSB' or 'Special MDF' and so on. Of course, if you DO know that your particleboard is made of a specific item (for example, if it is 100% eucalyptus), then you do need to enter that name. It is only if it's made of unknown sawdust or fibers, you use the special designation.

Declaration requirements aside, the particleboard products/OSB material and just about EVERY plant product, if it is being declared or not at entry, if it's produced in the US or overseas, and that includes the car dashboard and the maple syrup, is subject to the legality aspect of Lacey. So even if you are not required to declare a product's genus and species at entry, you are obligated to ensure it's legality.

hope that helps--like almost all regulations, it gets more confusing and complicated the better you 'understand' it.

thank you,
Elizabeth
Comment By Elizabeth Baldwin At 12/8/2011 11:35 AM
As Elizabeth has pointed out, the Lacey Act creates a law that is for all purposes unenforceable. To enforce it to the letter would cost billions of dollars and basically stop commerce in its tracks. To only pick and choose portions to enforce would flood the courts with law suits. The question is: Do we have an agency in the US that will even try to oversee the enforcement without giving into political pressures from special interest groups or politicians?
As I have stated previously in other discussions the best way to enforce the terms of the act is to require nations in which the species covered by the Act are produced to be the ones to provide certification.
Comment By Gail Hopper At 12/8/2011 12:23 PM
Gail, thanks for the additional thought. I agree that Lacey, in it's current form, is basically impossible to enforce widely. I'm not sure what you mean about requiring certification though. If you're saying have the Brazilian or Canadian government issue a certificate saying 'this is legal' and have the US government agree to accept it, that sounds like a better system then what we have. There would need to be some work on how it would be done, but it would provide everyone a great deal of clarity. The foreign governments would have control as to what they define as legal within their own countries and the importers and consumers would have clarity about what they needed to do to ensure they were purchasing legal material.

However, if you're talking about a certification system such as what is currently available for the wood industry, I would have to personally disagree that requiring certification in other countries is the correct response. Some reasons for that would be:


1. You noted 'in which the species are covered by the Act'--the Act covers ALL species and all plant products--we'd have to develop certification systems for Canadian maple syrup and Malaysian palm oil and the coconut water drinks that are so popular, plus every single wood everywhere in the world. The burden would be impossible.


2. You suggest requiring the nations that the Act covers be forced to certify--that would be every country in the world, including the US, which would put a huge burden (in all countries) on small private landowners and small companies. We'd end up wiping out almost every tiny company out there. You'd discourage economic growth, and you'd actually encourage the burning of forests to put in plantations that would be easier to certify or conversion of land to cattle grazing or something else that didn't require certification.


If you're looking at certification in terms of just the wood industry and tree fiber, setting aside the double standard of not requiring it on everything the Act covers, it would increase costs based not just on the growing/harvesting (where it can be an insanely expense requirement) but also on every company within the chain.


3. You would be putting the determination of 'legal' in private hands, in the auditors and certifying bodies. Which certification program are you going to give this power to? We all know that there is no perfect certification system out there, and who will assume responsibility for one of their failures? Who will watch the watchers? Who will determine what is sufficient in one country vs another?


Those are some quick concerns if we're looking at 'certification' as it is commonly thought of by the wood professional with an extended chain of custody and the involvement of private (for profit) auditors. The bottom line is that mandatory certification is practically and economically unfeasible, but beyond that, would be disastrous for every industry. One of the few good things I find in Lacey is that it doesn't require certification or even recognize certification as sufficient. I think certification can be a very important and useful CHOICE for a company to make for some or all of their products, but I would never support a mandatory and federally required certification program as we commonly think of it.

If you're thinking of some other form, post some details, I'm curious!

thank you,
Elizabeth
Comment By Elizabeth Baldwin At 12/8/2011 2:09 PM
. Yes, wood products and derivatives (such as nitrocellulose in
ping pong balls and resins in lipstick) are ubiquitous. But to belabor these hypothetical situations is not helpful, nor truthful. Common cultivars and common food crops are exempt from the Lacey Act. Pineapple pulp and chewing gum, as per your example, fall under this category.

. APHIS is processing the declarations in real-time, they are
caught up. the paperwork does not sit in a warehouse, and the mere act if filling it out is a major driving force in the law. This information is not meaningless. The collection of scientific name, country of harvest, value, and volume is important and necessary for curbing the trade in illegal wood and has practical utility.



The declarations can serve three principle purposes.

1. *Strengthening the enforcement approach of the implementing agencies*.
The declarations assist with risk analysis for inspections and
investigations by enabling agencies to examine patterns, compare
declarations to manifests, other trade data or CITES permits, understand
which ports might be priorities, and better understand which species and or
countries to watch thereby aiding enforcement activities. The declarations
contain information that can support cases that emerge from other
information, such as the current Gibson investigation, and allow
investigators to pinpoint individual shipments of interest.



Specifically for example, in June 2009, agents of the U.S. Fish & Wildlife Service seized three pallets of tropical hardwood as they entered the Port of Tampa, Florida from Iquitos, Peru. Originating deep in the Amazon, the pallets contained numerous species of decorative woods, including tigrillo ( *Swartzia arborescence*), palisangre (*Brosimum rubescens*), and tigre caspi (*Zygia cataractae*). Unlike the Gibson case, *agents confiscated the wood on grounds that the shipment violated the declaration requirement of the Lacey Act*. The seizure was supported by substantial evidence that the exporter was using stolen and forged documents.



1. *Augmenting trade data to support policy making*. The declaration
data is critical to enhance our understanding of where US imports are
actually originating and therefore what forest regions are impacted by US
consumption. This can support better decision making with regard to
bilateral aid priorities, trade or other negotiations (Free Trade
Agreements, Stop Burmese JADE Act), or US climate strategy including REDD
negotiaions.



1. *Increasing transparency in supply chains*. The requirement to ask
even basic questions about species and country of origin are fundamental
facts for a company try to reduce risk of legality and thereby exercise
'due care.' The increased level of questioning in a previously unregulated
global market establishes a new level of transparency in business
practices, and furthers the underlying purpose of the Lacey Act.



Our ongoing experience and interactions with people in the forest products industry both within the United States and abroad suggests ever more strongly that the declaration requirement is a critical element for achieving the intent of the broader Lacey Act. On-the-ground evidence confirms that those sectors such as flooring and sawn timber that are subject to the declaration are far more aware of the requirements and consequences of the statute. This reinforces our strong belief that, regardless of the quality of incoming data during these first years, regardless of the government's limited ability to process it right now, the declaration is forcing companies to ask questions, simplify their supply chains, and create transparency in an essentially previously unregulated market.

See www.forestlegality.org for more information.
Comment By Anne Middleton At 12/16/2011 3:52 PM
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