Two class-action lawsuits have been filed against Lumber Liquidators in Eastern Virginia U.S. District Court seeking damages related to alleged Lacey Act and wood formaldehyde standard violations. Investor Gregg Kiken filed a securities fraud lawsuit against the company Nov. 27. About one week later, three law firms filed a class action suit on behalf of consumers who purchased wood flooring from Lumber Liquidators. Both suits are related to allegations that Lumber Liquidators sourced illegally logged Siberian wood from China, and that the wood had elevated levels of formaldehyde emissions despite being marked as compliant with California Air Resources Board regulations.
Lacey Act
The Lacey Act and subsequent amendments make it unlawful to import, export, transport, sell, receive, or acquire any plant, fish or wildlife obtained in violation of U.S., tribal or foreign law, as well as any injurious wildlife. The law is administered by the Fish and Wildlife Service, National Oceanic and Atmospheric Administration, Animal and Plant Health Inspection Service and CBP. APHIS has been implementing Lacey Act declaration requirements since 2009. Lacey Act declarations may be filed by the importer of record or its licensed customs broker, and include information on imported item's species name, value, quantity, and country where it was harvested.
Faruqi & Faruqi is investigating "potential claims" against the Lumber Liquidators' board of directors by company shareholders over possible Lacey Act violations, the firm said in a press release. "The investigation concerns actions by Lumber Liquidators' Board of Directors that have caused the Company to allegedly violate the federal Lacey Act relating to the allegedly illegal importation of lumber from China and Russia," the press release said. ICE and U.S. Fish and Wildlife Service executed a sealed search warrant on Sept. 26 at the company's Toana and Richmond, Va., corporate offices (see 13092716).
International Trade Today is providing readers with some of the top stories for Oct. 7-11 in case they were missed.
The recently introduced Lacey Act Amendments Act of 2013 would grandfather any plant or plant product purchased before the enactment of the 2008 Lacey Act Amendments, relieving U.S. importers of considerable risk, said House Natural Resources Subcommittee Chairman Congressman John Fleming, R-La., through a press official. Congressman Fleming introduced the legislation on Oct. 9 (see 13101004). The legislation addresses the Lacey Act Amendments of 2008 and lower restrictions on:
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International Trade Today is providing readers with some of the top stories for Sept. 23-27 in case they were missed.
Federal authorities raided the corporate offices of Lumber Liquidators as part of an apparent investigation into the company's wood imports, Lumber Liquidators said in a Sept. 27 press release. ICE and U.S. Fish and Wildlife Service (FWS) executed a sealed search warrant on Sept. 26 at the company's Toana and Richmond, Va., corporate offices, the company said. The raid was reportedly related to potential Lacey Act violations, though no complaint has been filed.
Recent trade-related bills introduced in Congress include:
International Trade Today is providing readers with some of the top stories for Sept. 9-13 in case they were missed.
CBP's Newark field office outlined the recently revised form requirements under Lacey Act provisions being enforced by the Animal and Plant Health Inspection Service (see 3081926). CBP gave a presentation on the subject at the Sept. 12 quarterly meeting in Newark. The changes, which add to language to Protection and Quarantine (PPQ) Form 585 (Permit to Import Timber or Timber Products) and PPQ Form 621 (Protected Plant Permit to Engage in the Business of Importing, Exporting or Re-exporting Terrestrial Plants or Plant Products that are Protected), are meant "to make certain importers understand their obligations under the Lacey Act," the presentation said. The revised language will include information on the requirement to submit a PPQ Form 505 when importing applicable commodities, it said. The agency also offered some best practices when an importer is unsure if a form is needed, including checking with foreign governments and asking APHIS.