TRADE ALERT
CBP Issuing Liquidated
Damages and Penalties for Wood Packing Material
(May 8, 2007)
The Customs and Border Protection’s (CBP’s),
“Guidelines for Liquidated Damages and Penalties on Wood Packing Material”
became effective March 9, 2007. Such
regulated materials include dunnage, crating, pallets, packing blocks, drums,
cases, skids, etc.
According to CBP, all regulated wood packing material (WPM) must be
heat treated or fumigated with methyl bromide in accordance with the
International Standards of Phytosanitary Measures (ISPM). Such processes are required to kill any
insects that may be present in the wood.
In addition, WPM goods must also include an internationally recognized mark
that certifies that the wood has completed the required treatment.
WPM that does not contain the appropriate marking or which contains live
wood boring pests will be subject to immediate export.
Furthermore, CBP will issue liquidated damages at three times the
entered value of the merchandise, but not greater than the bond amount. The value of the merchandise includes the WPM
and the value of the commodity or commodities identified for importation on the
entry documentation. In addition to
liquidated damages claims, penalties may be assessed if the violator attempts
to conceal a violation of the WPM, or if more than five violations are documented
over one fiscal year nationally.
The
importer of record, carrier, or bonded custodian will be responsible for any
cost or charges associated with the liquidated damages and/or penalties for any
WPM that does not comply with the regulations enforced by the U.S. Department
of Agriculture (USDA).
To avoid
liquidated damages and/or penalties associated with WPM, along with any delays
at the border, all shippers and importers should familiarize themselves with 7
CFR 319.40-3, available at: http://a257.g.akamaitech.net/7/257/2422/14feb20071500/edocket.access.gpo.gov/cfr_2007/janqtr/pdf/7cfr319.40-3.pdf
“Guidelines
for Liquidated Damages and Penalties on Wood Packing Material” can be found on
the CBP website at: http:www.cbp.gov/linkhandler/cgov/import/commercial_enforcement/wpm/guidelines_wpm.ctt/guidelines_wpm.doc