H.R. 2239: Strengthen Wood Product Supply Chains Act of 2025

This bill, known as the Strengthen Wood Product Supply Chains Act of 2025, amends the Lacey Act Amendments of 1981 related to the importation of plants and wildlife products, particularly wood products. The key points of the bill are as follows:

Purpose

The primary aim is to improve the enforcement of laws related to the importation of wood and wood products, ensuring that these products comply with U.S. regulations and are sourced legally and sustainably.

Detention of Merchandise

When merchandise is detained for inspection under this act:

• The Secretary of the Interior must notify the importer within 5 days if their merchandise is detained, or release the merchandise.
• The notice must include:
• The date of detention.
• A specific reason for the detention.
• The anticipated length of the detention.
• A description of the tests or inquiries to be conducted.
• Information on how the importer might expedite the process.

Transport of Detained Merchandise

Importers can request to move detained merchandise to another location, provided they cover any associated fees and the Secretary agrees that the move won’t hinder the enforcement of the act.

Testing and Results

If the Secretary conducts tests on the detained merchandise, they must provide the importer with the results and enough information for the importer to replicate those tests.

Seizure Process

The Secretary must either release or seize the detained merchandise within 30 days. If there is a failure to act within this timeframe, it will be considered a seizure.

Administrative Review and Court Proceedings

Importers can request an administrative review if they disagree with a seizure. The Secretary must respond within 30 days. If the seizure is affirmed or not acted upon, the importer can file a claim in court, which can result in the merchandise being ordered to be released unless the Secretary can provide sufficient justification for the seizure.

Definitions

• Detained merchandise: Items that are held for inspection under this act.
• Merchandise: Refers to any fish, wildlife, or plant that is imported for sale.

Overall Impact

By improving procedures for the inspection and release of detained merchandise, the bill aims to provide clarity and fairness in enforcement while promoting sustainable practices in wood product sourcing.

Relevant Companies

• WOOD - This is an ETF that focuses on global timber and forestry investments and may face regulatory impacts due to changes in enforcement related to wood product imports.
• PHM - PulteGroup, a homebuilder that uses a significant amount of wood in its construction, could experience supply chain impacts related to wood product sourcing and compliance with new regulations.