Wood Packaging Material violations are the kind of compliance issue that should have largely disappeared by now. The restrictions on WPM have been in place since 2005 — the trade community was given ample time to update its packaging practices, and most of the industry adapted years ago. Yet nearly a decade after the rules took effect, CBP issued a C-TPAT alert flagging a new wave of non-compliant WPM violations involving flat rack cargo carried by ocean vessels traversing the Mediterranean. The full alert is available here.
The purpose of this C-TPAT Alert is to inform all C-TPAT Partners, particularly its sea carriers, of recent interceptions of non-compliant wood packing material used in flat rack cargo carried by ocean vessels traversing the Mediterranean. WPM is defined as wood or wood products (excluding paper products) used in supporting, protecting, or carrying a commodity. Some examples of WPM include: bins, cases, cratings, reels, load boards, boxes, containers, pallets, skids, dunnage and crates. Snails and other pests may infest non-compliant wood packing material. These pests are regulated under the Federal Plant Protection Act. The commodities with the highest incidence of WPM pests include: manifested WPM; machinery including auto parts; metal products; and stone products including tile. Other high risk commodities include electronics and electronic components, finished wood articles, plant products and foodstuffs.
What Wood Packaging Material Regulations Require
The WPM requirements stem from the International Plant Protection Convention’s International Standards for Phytosanitary Measures No. 15 — commonly referred to as ISPM 15. The regulations require that all wood packaging material used in international trade be treated to eliminate the risk of invasive pests — primarily through heat treatment or methyl bromide fumigation — and marked with the IPPC symbol to certify compliance. The mark must appear on both sides of the WPM and must include a two-letter country code, a unique producer or treatment provider number, and an abbreviation indicating the treatment method used.
WPM that arrives in the United States without the required mark, with a mark that does not meet specifications, or with visible evidence of live pests is non-compliant. Non-compliant WPM is subject to one of three CBP responses: immediate re-export of the entire shipment, treatment at the port (when treatment is available and approved), or destruction. None of those options is free or fast, and all of them create delays and costs that compound the underlying penalty exposure.
Why the Mediterranean Alert Matters
The C-TPAT alert specifically flags flat rack cargo from vessels traversing the Mediterranean — which covers a significant portion of European and Middle Eastern export traffic. Flat rack containers, used for oversized or irregularly shaped cargo like machinery, vehicles, and construction equipment, commonly use dunnage and blocking material that may not meet ISPM 15 treatment requirements, particularly when the material is sourced locally at the port of loading without proper certification.
The alert’s focus on C-TPAT partners — sea carriers in particular — signals that CBP is holding supply chain participants to a higher standard on this issue. C-TPAT membership is supposed to represent a commitment to supply chain security and compliance. A C-TPAT partner whose vessels are repeatedly carrying non-compliant WPM risks jeopardizing their program standing, which carries consequences well beyond a single penalty notice.
The Penalties — and Why They Are Negotiable
WPM violations can result in two types of CBP enforcement actions beyond the immediate disposition of the non-compliant material. First, a notice of penalty under 19 U.S.C. § 1592 for importation contrary to law — the same statute that governs commercial fraud and negligence penalties in other import contexts. Second, a notice of liquidated damages under the importer’s entry bond. Both can be contested through CBP’s petition for mitigation process.
WPM penalties are among the more negotiable customs penalties in our experience, particularly for first-time violations where the importer had no prior knowledge that the foreign supplier’s packaging was non-compliant. CBP’s mitigation guidelines for WPM cases consider factors including the importer’s compliance history, whether the violation was the result of a foreign supplier’s failure rather than the importer’s own practices, whether the importer has taken corrective action, and whether the importer has implemented a WPM compliance program going forward. A well-prepared petition that documents these factors and demonstrates a commitment to future compliance can result in substantial penalty reductions.
Never pay the full assessed penalty in a WPM case without first evaluating your mitigation options. The assessed amount is CBP’s opening position — it is not necessarily what you owe after a proper legal response.
The Application to Separate — An Important Option
When non-compliant WPM is discovered, the importer’s first instinct is often to focus on the penalty. But the more immediate and often more costly problem is the disposition of the merchandise itself. If the entire shipment must be re-exported because of non-compliant packing material, the importer faces not just CBP penalties but freight costs, storage fees, and the delay of goods that may be urgently needed.
CBP has a procedure for handling this: an application to separate the violative wood packaging material from the compliant merchandise. If the application is approved, CBP allows the non-WPM merchandise to enter the United States while only the non-compliant packing material is re-exported or destroyed. This is almost always the better commercial outcome — you get your merchandise, and the non-compliant pallets or dunnage are dealt with separately. The application needs to be submitted quickly, before CBP requires re-export of the full shipment.
Contact Us About a WPM Violation
If CBP has notified you that your wood packaging material is non-compliant, or if you have received a notice of penalty or liquidated damages related to a WPM violation, contact us immediately. Time matters — both for the application to separate and for the petition deadline. Call us at (734) 855-4999, send a text message, or reach us on WhatsApp. You can also contact us online. Read our full article on regulated wood packaging material violations and penalties for a complete overview of the compliance requirements and enforcement framework.