Understanding the Lacey Act Updates
Lacey Act updates are coming! A new phase of the Lacey Act is on the horizon, and will impact global trade and the importation of plant products into the United States. As these changes take effect, it’s essential for importers and logistics professionals to understand the latest developments, ensuring compliance and avoiding potential disruptions. At Everglory Logistics, we’re committed to helping businesses navigate these shifts, especially as Phase VII of the Lacey Act introduces new requirements that affect a wider range of products.
The Evolution of the Lacey Act
First enacted in 1900, the Lacey Act initially focused on preventing the illegal trade of wildlife and birds. Its scope broadened significantly with the 2008 amendments in the Farm Bill, which expanded the Act’s reach to cover plants and plant products. These amendments aimed to curb illegal logging and the unsanctioned harvesting of plants, actions often tied to environmental concerns like deforestation, political instability, and even funding for illegal activities. Since then, the Lacey Act has required importers to submit declarations to confirm that plant products were harvested legally, underscoring the importance of corporate environmental, social, and governance (ESG) compliance for importers.
What to Expect in Phase VII of the Lacey Act
Phase VII of the Lacey Act introduces new requirements for importers. As of this phase, Import Declarations will be mandatory for all remaining plant product Harmonized Tariff Schedule (HTS) codes that are not classified as 100% composite materials. This means that products previously exempt from declaration, such as certain furniture, essential oils, and cork, require comprehensive documentation. Importers will need to prepare for the added compliance burden by gathering detailed information about the genus, species, and country of harvest for these newly included plant products.
The Animal and Plant Health Inspection Service (APHIS) is evaluating the specific HTS codes that will be impacted by Phase VII and plans to publish the list in the Federal Register. Importers will have a six-month window after the announcement to fully prepare for the changes. During this time, businesses should audit their product lines, engage with suppliers, and update internal records to ensure compliance with the new requirements.
Preparing for Compliance: What Importers Should Do Now
Though the final list of products affected by Phase VII has yet to be released, preparation is crucial. Importers should review their current product catalog for items that may fall under the new regulations. Early outreach to suppliers can also help gather necessary data points, such as the species and origin of plant materials, to ensure a smooth transition when the new rules take effect. Establishing clear communication with supply chain partners is a best practice that can prevent last-minute compliance issues.
Updating IT systems to handle the new declaration requirements is also essential. Systems should be configured to capture all required data, validate for accuracy, and integrate smoothly with U.S. Customs & Border Protection’s Automated Commercial Environment (ACE) system for filing declarations. Utilizing Global Trade Management (GTM) software can simplify the process, helping businesses streamline product classification, manage documentation, and ensure they meet all regulatory obligations under the Lacey Act.
The Role of Everglory Logistics in Navigating the Lacey Act Changes
At Everglory Logistics, we understand the complexities of regulatory changes like those introduced by the Lacey Act. Our team is equipped to help importers ensure compliance through robust supply chain solutions, expert customs brokerage services, and a commitment to minimizing disruptions. With our support, businesses can navigate the evolving landscape of import regulations, avoid penalties, and maintain the integrity of their supply chains.
Stay ahead of the Lacey Act updates with Everglory Logistics. Contact us today to learn how we can help your business ensure compliance with new import declaration requirements.
