CBP to Issue Liquidated Damages Claims/Penalties for Wood Packaging Material Violations
U.S. Customs and Border Protection (CBP) has issued a notice stating that effective March 9, 2007, it may issue claims for liquidated damages and/or penalties against importers, carriers or bonded custodians for importing wood packaging material (WPM) in violation of the regulations.
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Damages/penalties to be based on value of merchandise plus WPM. CBP states that liquidated damages result from a breach of obligation under bond. When violations occur, liquidated damages and/or penalties will be assessed based on the value of the merchandise, which is considered the value of the WPM plus the value of the commodity or commodities identified for importation on the entry documentation.
According to CBP, a liquidated damages claim may be issued at three times the entered value of the merchandise but not greater than the bond amount.
(CBP states that the WPM regulations have been in full enforcement since July 5, 2006 and were implemented in a three-phase approach to ensure that the trade was fully informed. The regulations require all WPM entering or transiting through the U.S. 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), and be free of timber pests.
Immediate exportation is required of any noncompliant WPM. This includes WPM that is unmarked, inappropriately marked, or marked but found infested with a live wood-boring pest of the families Cerambycidae, Buprestidae, Siricidae, Cossidae, Curculionidae, Platypodidae, Sesiidae and Scolytidae. All costs associated with the handling of violative WPM, including the cost of exportation, are the responsibility of the violator.)
(See ITT's Online Archives or 07/14/06 news, 06071410, for BP summary of CBP's updated operating procedures for full enforcement of WPM regulation.)
CBP WPM Penalty notice (dated 03/08/07) available at http://www.cbp.gov/xp/cgov/newsroom/news_releases/03082007_5.xml
BP Note
In September 2006, CBP had stated at a NCBFAA Conference that about 35 shipments a day were being refused due to issues regarding WPM, with Turkey and Mexico the worst offenders. Other problems had occurred when the broker or importer was not timely in moving problem merchandise or following up with requirements or procedures.
At that time, CBP had stated that it was thinking of setting penalties to encourage better cooperation (USDA had been taking care of any problems and billing the company(s), but CBP wasn't sure that this was working). (See ITT's Online Archives or 09/25/06 news, 06092505, for BP summary of NCBFAA Conference, including CBP comments on WPM.)