Export Compliance Daily is a Warren News publication.

Lawmakers, Doobie Brothers Split on Lacey Act Revisions

Lawmakers, industry executives and musicians voiced disparate views over the need for adjustment to the Lacey Act during a House Natural Resources Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs hearing May 9, 2012. Congress expanded the law in 2008 to ban trade in products containing illegally harvested wood or plant material. Those changes also require importers to document the genus, species and country of harvest of any wood or plant material contained in an imported product.

Sign up for a free preview to unlock the rest of this article

Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

The "rushed changes in 2008 made for imperfect outcomes that need to be addressed," said Subcommittee Chairman John Fleming (R-La.), during an opening statement.

Two bills were discussed at the hearing that would change the Lacey Act. They are:

H.R. 3210: To amend the Lacey Act Amendments of 1981 to limit the application of that Act with respect to plants and plant products that were imported before the effective date of amendments to that Act enacted in 2008.

H.R. 4171: To amend the Lacey Act Amendments of 1981 to repeal certain provisions relating to criminal penalties and violations of foreign laws, and for other purposes.

Sen. Rand Paul (R-Ky.) testified in support of H.R. 4171, and a similar Senate bill (S. 2062) saying the current law is unconstitutional because it is too vague and essentially delegates law-making authority to other nations. Rep. Jim Cooper (D-Tenn.), a sponsor of H.R. 3210, said the bill improves several unintentional mistakes of the 2008 legislation. Owners of rare wood guitars purchased before 2008 should be grandfathered in, especially because musicians can't claim the innocent owner defense or file a complaint, he said.

Rep. Earl Blumenauer (D-Ore) said H.R. 4171 and H.R. 3210 would "throw into question a century of environmental protections while adding additional uncertainty to a n already complex issue." The "legislation before us is not the solution," he said.

Barry Rutenberg, chairman of the National Association of Home Builders, said "by deeming Lacey-violative wood and plant products “contraband”, innocent companies are "left without legal standing to challenge a government in court”, which coupled with the requirement that the U.S. enforce “an almost limitless set of foreign laws….leaves wide open the entire supply chain of custody of a timber product, including builders who have no way of knowing the origin of a particular piece of lumber, a component of a cabinet, closet door or crown molding, to the details of an enforcement action.” The NAHB called for Congress to amend the Lacey Act in order to “recognize the need to hold harmless those who exercised due care…” and narrow the scope of foreign laws covered by the Lacey Act.

Laurie Everill, Regional Customs Compliance Manager at IKEA, said the data requirements make the process difficult. “Providing genus, species, and country of harvest information on a transactional basis” per the declaration requirement “even for seemingly simple wood products requires a tremendous amount of data to be submitted,” she said. These submissions are “costly and…burdensome,” and Congress should consider alternative means of providing declaration information, she said. American Forest and Paper Association CEO Donna Harman said the government should first release promised report before addressing Lacey concerns. “We are concerned with the proposed exclusion of non-solid wood products from the declaration requirement of the Lacey Act," she said.

Doobies Divided

“Skunk” Baxter, a former Doobie Brothers guitarist, said Congress should narrow the scope of applicable foreign laws to those that deal directly with the environment and conservation, while establishing a voluntary pre-certification program that would allow businesses to work with the Department of Agriculture to ensure that products and raw materials comply with the Lacey Act before importation into the U.S. A former band member seems to disagree, though. Testimony submitted by the frontman of the band Guster listed Pat Simmons of the Doobie Brothers among musicians concerned with the two bills.