Guidelines have been published on the US Customs and Border Protection website for liquidated damages and penalties on wood packing material (WPM).
The visible, legible, and permanent mark on the WPM must include:
- The International Plant Protection Convention (IPPC) logo
- The ISO two-letter country code for the country that produced the wood packing material followed by a unique number code, traceable to the facility that treated and stamped the WPM
- An abbreviation that discloses the type of treatment - HT for heat treatment or MB for methyl bromide fumigation
The Customs webpage on wood packaging materials has several helpful links.
There are three categories for enforcement:
- Unmarked WPM
- Inappropriately marked WPM
- Infested WPM
The importer of record, the carrier, or the bonded custodian is responsible for any costs or charges associated with export of the violative shipment. When assessing liquidated damages and/or penalties, the value of the merchandise is the value of the WPM plus the value of the commodity on the entry document.
Failure to comply with an Emergency Action Notice (EAN) requiring export of the violative WPM shall result in the following liquidated damages claim:
- If a consumption entry is made and the goods were conditionally released... the liquidated damages claim shall be issued at three times the entered value of the merchandise but not greater than the bond amount.
- If a consumption entry is made but the goods were not conditionally released... the amount of liquidated damages claim shall be the cost of export or remediation but no greater than the bond amount.
- If an entry is not made... the liquidated damages claim shall be issued at the entered value of the merchandise, but no greater than the bond amount.
- If a party other than the carrier or importer failed to comply with the EAN and that party is responsible for the merchandise under its custodial bond… the liquidated damages claim shall be issued at three times the entered value of the merchandise, but no greater than the bond amount.
Penalties (under Title 19 United States Code 1592, or 1595a(b)) may be assessed in addition to claims for liquidated damages, and may be assessed even though there is compliance with all EANs in cases wherein:
- The importer, carrier, or bonded custodian attempts to conceal a violation of the WPM, CBP
- The importer, carrier, or bonded custodian has continuous documented violations (more than 5) over one fiscal year period nationally