CBP Posts Penalties and Liquidated Damage Guidelines for Wood Packaging Material Violations

CBP posted an updated guidance for liquidated damages and penalties for non-compliant wood packaging materials. CBP said in September it would increase the frequency of penalties for WPM violations and no longer limit some penalties to parties with five or more violations (see 1709250038) to motivate better compliance with the rules. A penalty may be assessed against the party "in all instances where the party responsible for the importation, attempts to import contrary to law," CBP said. Regulated WPM, which include "crates, pallets, boxes, and pieces of wood used to support or brace cargo," must "display a visible, legible, and permanent mark certifying" heat or fumigation treatment, it said.

CBP "will evaluate the totality of the situation in regards to any aggravating and/or mitigating circumstances in deciding whether to issue the penalty," it said. "In the course of the pest risk mitigation of the importation, if the party fails to fulfill obligations as directed on the [Emergency Action Notification (EAN)], then CBP can issue a penalty against the party even if a claim for liquidated damages has already been assessed." The WPM must display a visible, permanent mark certifying treatment that has been approved under the International Standards of Phytosanitary Measures (ISPM 15) regulation. Foreign-origin WPM lacking the appropriate markings or found to be infested with a timber pest is considered to be in violation of ISPM 15.

Penalties may also apply when "the carrier or shipping line discharged dunnage that is independent of shipments" and "an EAN was issued for immediate remediation, then CBP personnel may issue a penalty for a 'technical violation,'" the agency said. Such penalties may be "assessed from $1,000 to $2,000 for first time violation, and from $2,000 to $10,000 for subsequent violations." Penalties may also be issued for other circumstances, such as attempts to conceal violative WPM or failure to comply "on WPM that is associated with merchandise and the violation has been documented and notice of violation given to the responsible party," it said.

CBP can issue liquidated damages in response to WPM violations that aren't remediated despite notification from the agency to do so. "If the party whose bond is obligated at the time of the discovery of the violation has received an Emergency Action Notification (EAN) requiring remediation of the violative WPM but fails to do so, CBP may issue a liquidated damages claim against that party," the agency said.