Environmental Investigation Agency’s report leads to an American federal investigation of illegal import of timber
EIA’s investigation revealed that since the 2008 Lacey Act amendments became law, Lumber Liquidators, the largest specialty retailer of hardwood flooring in the United States, has imported millions of square feet of solid oak flooring from a manufacturer that freely describes its own illegal logging practices and that buys wood from suppliers that are under scrutiny by Russian authorities for illegal logging in the most threatened temperate forest in the world.
In September 2013, the Department of Justice (DOJ) initiated a federal investigation of Lumber Liquidators for alleged violations of the Lacey Act. This is the second criminal investigation for alleged violations of the Lacey Act since the 2008 plant amendments took effect. Unlike the first case, which focused on a relatively small volume (but high value) timber flow, this investigation focuses on high volume product flow that occupies an increasingly prominent position in the US forest products sector. Equally importantly, it represents the first time that illegal timber has been tracked through manufacturing bases in China through to its final destination in another country, and finally leading to an enforcement action at its final destination. This provides a powerful case study about how to identify timber through the opaque processing centers in China, which will ultimately be essential to the success of new laws in the US and the EU given the scale of exports from China to both regions. Stakeholders have long claimed that unless China takes action to address illegal timber imports, the advent of new consumer country laws like the Lacey Act imperil China’s bourgeoning export market. However, this presents the first time that such claims have been evidenced in realworld enforcement actions.
EIA partners (RAN) also educated their members about the Lacey Act and the DOJ investigation,
resulting in over 70,000 RAN supporters and over fifty forest product consumer companies being
informed of Lumber Liquidators import of illegal flooring and importance of Lacey Act. Additionally, over 17,000 RAN supporters took action to pressure Lumber Liquidators and support Lacey Act implementation. Consumer awareness and strong reaction to illegal logging presents another risk factor for corporations that continue to source high-risk or illegal timber.
Finally, in March 2014, Russia listed its populations of oak and ash (the subject of our investigation) on CITES Appendix III, providing additional protections for these highly valued species in international trade. Importantly, while China does not yet have in place legislation that prohibits import of illegal timber broadly speaking, the Government of China does have in place CITES implementing legislation that allows border officials to seize timber not in compliance with CITES permitting regulations. The Chinese government increasingly highlights the importance of CITES enforcement as a key pillar in its efforts to address illegal timber imports.