In October 2015, Department of Justice published conviction and penalty information of Lumber Liquidators Inc.’ criminal activities (also available here). The fine is $13,150,000. According to February 2, 2016 Google Finance report, (holding) company’s market cap is about $354,470,000. This means that Lumber Liquidators Inc.’s criminal activities cost company 3.7 percent of its market cap (attorneys’ fees not included). According to DOJ, it is “the largest financial penalty ever under the Lacey Act.” Now that the Lacey Act criminal precedent is set to cost 3.7% of the corporate market cap, it is a good reason to revisit Lacey Act itself, especially since its has been over four years since LawCustoms published on the topic. In a nutshell, Lacey Act makes it unlawful to import, export, sell, acquire, or purchase fish, wildlife or plants that are taken, possessed, transported, or sold: 1) in violation of U.S. or Indian law, or 2) in interstate or foreign commerce involving any fish, wildlife, or plants taken possessed or sold in violation of State or foreign law. Lumber Liquidators Inc. pleaded guilty to violation of 18 U.S.C. § 542 (entry of goods by means of false statements). Lacey Act requires importer of to submit a…
Fish and Wildlife Service banned imports and interstate commerce activities that includes the following species: Python molurus (which includes Burmese python Python molurus bivittatus and Indian python Python molurus molurus), Northern African python (Python sebae), Southern African python (Python natalensis), and Yellow anaconda (Eunectes notaeus) The official notice was published in 77 Fed. Reg. 3,330. The notice labels, under Lacey Act, these species as “injurous,” and therefore gives basis to exclude them from interstate commerce. The notice leaves the door open for exceptions, by permit, and on case by case basis. But, the notice goes on to state that “[t]he rule does not address under what circumstances a person may qualify for exception to the importation or interstate transportation prohibitions under the zoological purposes provisions,” leaving circus performers in the dark. One thing that is clear, is that a traveling circus performer will need to apply for the permit to take applicable snakes out of state. If that is not done, and if caught, the performer may get criminal charges filed against him. The example statement in the notice provides a good example of what can happen: A person would violate the injurious wildlife provisions of the Lacey Act (18…
Read More Traveling Circus Performers Be Aware – State Travel Ban on Certain Species
Importers of any products falling within these headings need to be aware of declaration requirements administered by APHIS. The easiest way to stay informed of developments is to sign up for APHIS email alerts. Briefly, if your product is falling within these headings, you need to report it using APHIS declaration. According to Q/A APHIS posting, “Importers should have the form available for Customs and Border Protection (CBP) to review at the port of entry. After CBP clears the shipment, the importer must mail the form to USDA at the following address: The Lacey Act, c/o the U.S. Department of Agriculture, Box 10, 4700 River Road, Riverdale, MD 20737.” This is yet another statistical exercise that may bring forward liability for of the importers: “The Lacey Act now makes it unlawful to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce any plant, with some limited exceptions, taken, possessed, transported or sold in violation of the laws of the United States, a State, an Indian tribe, or any foreign law that protects plants or that regulates certain plant related offenses. It is the responsibility of the importer to be aware of any foreign laws that may…
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