TREE Act

Summary#

This bill, called the Trade Responsibly for Environmental Emissions Act (TREE Act), would make it illegal starting January 1, 2029, to import or introduce into interstate commerce any product that is a "deforestation good." A deforestation good is a covered commodity, covered product, or covered source produced, sourced, made, or otherwise derived from land subject to deforestation or forest degradation on or after December 31, 2020. Covered commodities named in the bill are cattle, cocoa, palm oil, rubber, soy, and wood.

The bill requires importers to give Customs and Border Protection (CBP) a due diligence statement with details such as commodity type, quantity, supplier information, proof the product is deforestation-free, and, for goods from higher-risk countries, country of origin and geolocation when practical. The United States Trade Representative (USTR) must categorize countries and regions into Level I (high), Level II (moderate), or Level III (low) risk for exporting deforestation goods and publish that list. CBP must inspect a minimum percentage of imports by risk level (Level I at 9%, Level II at 3%, Level III at 1%) beginning December 31, 2029. The act creates civil penalties including fines (up to 4 percent of an operator's or trader's total U.S. revenue for the previous fiscal year), confiscation of goods, and temporary ineligibility for federal contracts or funding. For serious or repeat violations, a party may be barred from importing for up to 12 months.

The bill also directs the Secretary of State to give preference for forest-related financial assistance to Level I countries and requires that half of civil penalties collected be used to provide assistance to underdeveloped countries for deforestation and forest-degradation management. The bill includes definitions for terms like forest, deforestation, forest degradation, operator, and trader.

What it means for you#

• If you import, trade, or place covered commodities or products into interstate commerce, you must provide a CBP due diligence statement with supplier details and verifiable proof the goods are not deforestation goods. False labeling or false records are unlawful.
• Importers of goods from countries or regions the USTR labels Level I or Level II should expect additional data requirements (including geolocation when practical) and higher inspection rates.
• Importers and traders face fines up to 4% of their U.S. revenue, confiscation of offending goods, and possible suspension from federal contracts or grants for violations.
• If you are a consumer, the bill targets products linked to deforestation (cattle, cocoa, palm oil, rubber, soy, wood), but there is no detailed public information in the bill text about direct retail impacts or availability.

Expenses#

No publicly available information on total federal costs or formal budgetary estimates is included in the bill text or metadata provided. The bill requires increased inspections and administrative actions by CBP and USTR but does not include cost figures. The bill does specify that half of civil penalty revenue collected under the Act shall be used to provide assistance to underdeveloped countries for deforestation and forest-degradation management.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.