Friday, July 17, 2009

Updated Information on Damages, Penalties for Wood Packaging Violations

(World Trade Interactive)

U.S. Customs and Border Protection has recently posted to its Web site an updated list of answers to frequently asked questions concerning the regulations on how imported wood packaging material must be treated before it can enter the U.S. The updated information concerns the imposition of liquidated damages and penalties.

Under the WPM regulations, which have been in full force since July 5, 2006, all WPM entering or transiting through the U.S. must be properly marked to indicate that it has been either heat treated or treated with methyl bromide in accordance with the International Standards for Phytosanitary Measures: Guidelines for Regulating Wood Packaging Material in International Trade (ISPM 15). Such WPM must also be free of timber pests. […]

CBP now states that liquidated damages will be assessed when a party fails to comply with the terms of an emergency action notice, which will be issued when WPM entering the U.S. does not adhere to the required treatment. As a result, liquidated damages claims will not be assessed for the mere importation of violative WPM, but instead will be assessed for non-compliance with the EAN issued as a result of the importation of violative WPM. Read more here.