Timber Market Reports from USA & Canada - North American Timber Market -1-15th Feb 2009

North American Lumber Market

1-15th Feb. 2009

Amendments to the US Lacey Act to be implemented
in April 2009
Changes to the US Lacey Act (16 U.S.C. 3371 et seq.) that
were enacted in May 2008 have attracted considerable
attention among timber producers and traders. However,
there has also been some misunderstanding of the Lacey
Act. The following is a brief summary of these new
provisions.

The Lacey Act was initially enacted in 1900; it is the
oldest national wildlife protection statute in the United
States. Prior to the 2008 amendments, the Lacey Act was
an anti-trafficking measure covering a broad range of fish
and wildlife, but relatively few plants. The amendments
expand the scope of plants covered so that the Act can,
among other things, serve as a tool to help the US support
the efforts of other countries, as well as its own states, to
combat illegal logging. Specifically, with these
amendments, the Lacey Act now makes it unlawful to,
among other things, import, export, transport, sell, receive,
acquire, or purchase in interstate or foreign commerce any
plant, with some exceptions, taken or traded in violation of
the laws of a US state and most foreign laws.

The definition of the term ‘plant’ in the amended Lacey
Act includes ‘any wild member of the plant kingdom,
including roots, seeds, parts, and products thereof, and
including trees from either natural or planted forest
stands’. There are certain exclusions, including: (1)
common cultivars (except trees) and common food crops;
(2) live plants that are to remain or be planted or replanted;
and (3) scientific specimens of plant genetic material to be
used for research. Exclusions under (2) and (3) do not
apply for those species that are listed in an Appendix to
the Convention on International Trade in Endangered
Species of Wild Fauna and Flora (CITES), as endangered
or threatened under the US Endangered Species Act, or
pursuant to any US state law providing for conservation of
indigenous species threatened with extinction.

As of 22 May 2008, if a tree is illegally harvested, made
into wood products, and then exported to the US, anyone
who imported, exported, transported, sold, received,
acquired or purchased the wood products made from that
illegal timber, who knew or should have known that the
wood was illegal, may be prosecuted for violation of the
Lacey Act. The defendant need not be the one who
violated the foreign law; the plants or timber, and the
products made from the illegal plants or timber, become
‘tainted’ even if someone else commits the foreign law
violation. However, the defendant must know, or in the
exercise of due care should know, about the underlying
violation. Illegal plants and plant products may also be
seized and forfeited whether or not the person from whom
they are seized knew of the illegal nature of the product.
In any prosecution or forfeiture under the Lacey Act, the
burden of proof of a violation rests on the US government.

The 2008 amendments also introduce the requirement for
an import declaration for plants entering the US.
Enforcement of this requirement will be phased in,
beginning 1 April 2009, or as soon thereafter as the
electronic system used to collect customs information is
revised to collect the new information.

The plant import declaration will require the scientific
name of the plant (tree genus and species), quantity and
value of the importation and name of the country where
the timber was harvested. The plant import declaration
does not require information on legality and does not
require certification of any kind.

A revised schedule for the initial phase-in of enforcement
of the plant import declaration was published in the US
Federal Register on 3 February 2009. In the initial stage
(starting 1 April 2009 or soon thereafter), the requirement
for the declaration will be enforced for the following
Harmonized System (HS) tariff classifications:

Current information on implementation of the amended
Lacey Act can be found on the USDA-APHIS webpage:
www.aphis.usda.gov/plant_health/lacey_act/.

US EPA to hold public hearings on formaldehyde
emissions
The US Environmental Protection Agency (US EPA) has
extended the deadline for public comment on its
investigation on formaldehyde emissions from pressed
wood products. In addition to extending the period of
comment on the Federal Register information of 3
December 2008 to 19 March 2009, it is also holding a
public consultation on the issue on 4 March 2009 at 1 pm
in the Sheraton New Orleans Hotel. The investigation is to
generate public feedback on the proposed national
extension of California’s regulations on formaldehyde
emissions from hardwood plywood, particleboard, and
MDF.

Abbreviations

LM Loyale Merchant, a grade of log parcel	Cu.m Cubic Metre
QS Qualite Superieure	Koku 0.278 Cu.m or 120BF
CI Choix Industriel	FFR French Franc
CE Choix Economique	SQ Sawmill Quality
CS Choix Supplimentaire	SSQ Select Sawmill Quality
FOB Free-on-Board	FAS Sawnwood Grade First and
KD Kiln Dry	Second
AD Air Dry	WBP Water and Boil Proof
Boule A Log Sawn Through and Through	MR Moisture Resistant
the boards from one log are bundled	pc per piece
together	ea each
BB/CC Grade B faced and Grade C backed	MBF 1000 Board Feet
Plywood	MDF Medium Density Fibreboard
BF Board Foot	F.CFA CFA Franc
Sq.Ft Square Foot	Price has moved up or down

Source: ITTO' Tropical Timber Market Report