The Lacey Act

Authored by Congressman John F. Lacey and first released in 1900, The Lacey Act is the oldest wildlife protection statute on U.S. books. It was originally created to combat trafficking in illegal wildlife, fish and some plants. The 2008 amendment expands the field of protection to include illegal logging practices, any plant, including derivative products and hardwoods. Furthermore, this amendment gives teeth to the prosecution in terms of both criminal and civil courts.

On March 13, 2007, the amendment introduced by Congressmen Jerry Weller (R-IL), Earl Blumenauer (D-OR), and Robert Wexler (D-FL) in the House of Representatives and then by Senators Lamar Alexander (R-TN) and Ron Wyden (D-OR) in the Senate on August 1 followed the extension to ban the product of illegal logging. The law took effect in May of 2008 after it was passed unanimously by the Senate in December 2007.

Most representatives of the flooring industry are behind the movement toward honest environmental action. The truth is that there is little doubt that the amendment to the Lacey Act will have a profound effect on every link in the chain. Enforcement of the law will level the playing field for domestic production companies who have been forced to compete with lower prices generated by manufacturers and suppliers using illegally obtained wood.

What Exactly, Is Illegal?

This amendment holds all parties guilty by specifying that it is illegal to take, possess, transport, sell, or own illegally harvested wood or products made from illegally harvested wood. The U.S. is not completely able to directly enforce action against illegal logging, importers, manufacturers, sellers, and even customers can be culpable. Up to $500,000 civil penalties may be imposed, along with criminal liability in the form of felony charge of up to five years in prison. Severity of charges and fines depends on knowledge, whether a person should have known that the wood or wood item was procured in violation of the law. Importers, retailers, and even customers are expected to refuse the wood items it if the origins are suspect.

The law acknowledges that a company using a trusted supplier may be duped into believing a product is legal when it is not. In most such cases, no further legal action would be taken but the product would be forfeit.

Flooring contractors and retailers are advised by the World Floor Covering Association (WFCA) to protect themselves and their investments by taking the following steps:

• Require the origin information supplied by the exporter.
• Obtain written confirmation that the fabrication material has been harvested in a manner that complies with the law.
• Document at every level all steps the company takes to ensure the products are legally harvested and manufactured.
• Include a specific provision in the purchase agreement that the supplier will “hold harmless, indemnify, and defend” the purchasing company for inaccurate information provided by the supplier resulting in a violation of the Lacey Act.

Sellers should protect themselves and their practices with similar documentation, since trafficking of illegally harvested products puts the retailers at equal risk to importers.

Why Lacey is Relevant

These laws may sound harsh, but the importation of illegally harvested wood products is on the increase. It is estimated by The Environmental Investigation Agency that 10% of the hardwood flooring sold in the U.S. comes from illegally harvested forests.

The amendment places the legal harvesting burden of proof on the country of origin. At the same time it holds importers accountable. It is important to report suspected violations to the Department of Agriculture’s Animal Plant and Health Inspection Service, the Fish and Wildlife Service, the U.S. Customs and Border Protection or the International Trade Commission.

Enforcement

The Lacey Act Amendment is only the beginning. Enforcement presents a significant challenge and requires cooperation by industry as well as regulatory bodies. Exporters, importers, manufacturers, shippers, and retailers must all be aware and understand the law. New laws are expected to have global market impact. The great news is that many countries are already embracing alternatives on the Lacey Act to establish their own set of laws. For example, the U.K. has undertaken a Lacey Act approach and global leaders agree that such action is vital and sustained.

According to a spokesperson from Greenpeace, The Lacey Act Amendment “is the most important piece of US forestry legislation passed in the past decade.” The U.S. ambitions to use its purchasing power to globally fight against illegal logging practices.