Regulated Wood Packaging Material Violations — What Importers Need to Know
Wood packaging material — pallets, crates, dunnage, skids, and similar items used to ship goods internationally — is subject to strict phytosanitary requirements enforced by U.S. Customs and Border Protection at every port of entry. When WPM arrives in violation of those requirements, CBP can detain the entire shipment, demand re-exportation of the violative material, and — since November 2017 — assess a monetary penalty for the very first violation. There is no longer a tolerance threshold. One violation is enough.
This page covers the current state of WPM enforcement, the penalty exposure importers face, what CBP can do when a violation is discovered, and what options are available — including the application to separate violative WPM and the petition for mitigation of any penalty assessed.
What Is Regulated Wood Packaging Material?
Wood packaging material is any wood product used in the transport of goods across international borders — including pallets, crates, boxes, wooden drums, cases, load boards, pallet collars, and dunnage. WPM is regulated because it can harbor invasive insects and plant pathogens that pose a serious threat to U.S. forests, agriculture, and ecosystems. The Asian longhorned beetle and the emerald ash borer are among the most damaging invasive species that have entered the United States through non-compliant wood packaging.
To be compliant, all WPM entering the United States must meet the international phytosanitary standard known as ISPM 15 — the International Standards for Phytosanitary Measures No. 15. Under ISPM 15, WPM must be either heat-treated or methyl bromide fumigated, and must bear an IPPC mark — a specific stamp or brand that identifies the country of origin, the treatment provider, and the treatment method used.
WPM that lacks the IPPC mark, bears an illegible or improperly formatted mark, was treated by an unauthorized provider, or shows evidence of live insects or bark despite treatment is considered non-compliant. CBP agriculture specialists inspect WPM at ports of entry, and violations are discovered both through routine examination and through targeted enforcement.
The Enforcement Change: Penalties Now Apply on the First Violation
Prior to November 1, 2017, CBP’s published enforcement policy allowed importers a tolerance of five WPM violations per year before a monetary penalty was assessed. That threshold no longer exists.
Effective November 1, 2017, CBP may issue a penalty for the first documented WPM violation — with no yearly reset for calculating repeat violations. The change was announced through CBP’s Cargo Systems Messaging Service in CSMS #17-000612, which stated the reason for the change as follows:
To motivate WPM compliance, effective November 1, 2017, responsible parties with a documented WPM violation may be issued a penalty under Title 19 United States Code (USC) § 1595a(b) or under 19 USC § 1592. This is a change from the previous published threshold of 5 violations. There will be no yearly reset for calculating repeat violations as each WPM violation may incur a penalty.
CBP has also published a frequently asked questions document summarizing the change, and maintains a WPM resources page on its website. The enforcement change applies to all importers — regardless of their prior compliance history — and the absence of intent is not a defense to the violation.
Which Penalties Apply to WPM Violations?
CBP has two primary statutory tools for penalizing WPM violations, and the agency can choose between them depending on the circumstances of the violation.
19 USC § 1592 is the general customs penalty statute — covering material false statements, omissions, and acts in connection with an entry. A WPM violation can be charged under § 1592 when the violation reflects a misrepresentation about the nature or compliance status of the packaging material in the entry documents. Penalties under § 1592 are calculated as a percentage of the dutiable value of the merchandise, and are tiered by culpability: fraud, gross negligence, and negligence each carry different maximum penalty amounts. For negligence — the most common culpability level in WPM cases — the maximum penalty is the lesser of the domestic value of the merchandise or two times the unpaid duties.
19 USC § 1595a(b) is a separate penalty authority applicable when merchandise is introduced or attempted to be introduced into the United States contrary to law. This statute allows CBP to assess penalties up to four times the value of the merchandise in cases involving contraband or merchandise introduced contrary to law — a broad category that can encompass WPM violations when the non-compliant packaging is treated as the relevant “merchandise” subject to penalty.
In practice, WPM penalty notices are typically issued as liquidated damages claims against the importer’s customs bond rather than as formal § 1592 penalty notices — but the underlying authority and the petition process are the same regardless of how the claim is labeled.
What Happens When CBP Discovers a WPM Violation?
When a CBP agriculture specialist discovers non-compliant WPM at a port of entry, the agency’s immediate response typically includes one or more of the following:
Hold on the shipment. CBP will place the entire shipment on hold — not just the violative packaging material — pending a decision on how to resolve the violation. This means the goods themselves cannot be released to the importer until the WPM issue is addressed. Goods sitting at the port accrue storage charges and can miss delivery commitments, making a fast response essential.
Redelivery demand or re-exportation order. CBP will typically demand that the violative WPM be re-exported from the United States at the importer’s expense. If the WPM cannot be separated from the merchandise, the entire shipment may need to be re-exported. This is where the application to separate violative WPM becomes critical — it allows the importer to remove and destroy or otherwise dispose of the non-compliant packaging in the United States, rather than bearing the cost of re-exporting the entire load.
Penalty or liquidated damages notice. Following resolution of the immediate shipment hold, CBP will typically issue a monetary penalty notice or liquidated damages claim. This notice arrives by mail from the Fines, Penalties & Forfeitures office at the port of entry, and triggers the response deadline — typically 60 days from the date on the notice — for filing a petition for mitigation.
Can an Application to Separate Violative WPM Still Be Filed?
Yes. The November 2017 enforcement change affected the penalty threshold — not the availability of the application to separate. Importers who are notified that their wood packaging material is in violation of ISPM 15 can still file an application to separate the violative WPM from the accompanying merchandise. If the application is granted, the importer is permitted to remove and dispose of the non-compliant packaging in the United States, and the goods themselves can be released without requiring re-exportation of the entire shipment.
The application to separate must be filed promptly — before CBP makes a final disposition decision on the shipment. An importer who waits too long, or who is unaware that the application is available, may find that CBP has already ordered re-exportation of the entire shipment by the time they engage counsel.
If you have been informed that your wood packaging material is in violation and needs to be re-exported, contact us immediately at (734) 855-4999, by text, or on WhatsApp. We can prepare an application to separate violative wood packaging material so that — if it is granted — you do not have to bear the time and expense of re-exporting the merchandise you are trying to import.
Can WPM Penalties Be Mitigated?
Yes. WPM penalties — like most CBP civil penalties and liquidated damages claims — are subject to mitigation through the administrative petition process. Never pay the full assessed amount without first exploring mitigation options. CBP’s mitigation guidelines for WPM violations consider a range of factors, and a well-prepared petition can achieve a substantial reduction from the amount on the notice.
Mitigating factors that CBP considers in WPM penalty cases include:
First-time violation. An importer with no prior WPM violations — or with a long gap since any prior violation — is in a better position for mitigation than a repeat violator. The absence of a prior history is one of the most significant factors CBP weighs in determining the mitigated amount.
Good faith reliance on supplier representations. When the importer had reason to believe the WPM was compliant — because the supplier represented it as compliant, because the IPPC mark appeared to be present but was subsequently found to be defective, or because the violation involved a documentation error rather than a failure to treat — that good faith reliance supports mitigation.
Corrective action taken. Steps the importer has taken since the violation to prevent recurrence — such as implementing supplier WPM compliance requirements, conducting inspections of incoming WPM, or switching to heat-treated packaging from a certified provider — are a standard element of an effective mitigation petition.
Cooperation with CBP. An importer who cooperated fully with CBP during the examination, promptly addressed the redelivery demand, and filed the petition in a timely manner is in a better position than one who resisted or delayed the process.
Aggravating factors that can limit mitigation include prior WPM violations, evidence that the importer was aware of the compliance issue and failed to address it, and cases involving live insects or other evidence of active infestation — which CBP treats as more serious than a marking deficiency alone.
How to Prevent WPM Violations
The most effective way to avoid WPM penalties is to build compliance requirements into your supply chain before goods ship. Practical steps include:
Require ISPM 15 compliance from all suppliers. Your purchase orders and supplier agreements should specify that all wood packaging material must be ISPM 15-compliant and bear the required IPPC mark. This creates a contractual basis for holding suppliers accountable when non-compliant WPM causes a detention or penalty.
Inspect WPM before loading. When possible, have a representative or freight forwarder inspect the WPM before goods are loaded for export. Catching a compliance problem before the shipment departs is far less costly than addressing it after CBP detains the goods at the U.S. port of entry.
Use certified treatment providers. The IPPC mark must be applied by a certified treatment provider authorized by the national plant protection organization of the country of origin. Verify that your supplier’s WPM is being treated and marked by a properly authorized provider — not simply stamped with a mark that has not been earned through actual treatment.
Document your compliance program. Maintain records of your WPM compliance requirements, supplier communications, and inspection procedures. This documentation can be the difference between a significant mitigation and a full penalty assessment if a violation occurs despite your best efforts.
Received a WPM Penalty Notice or Redelivery Demand?
If CBP has notified you of a WPM violation — whether through a shipment hold, a redelivery demand, a penalty notice, or a liquidated damages claim — contact Great Lakes Customs Law immediately. WPM enforcement actions move quickly, and the window to file an application to separate or a petition for mitigation is narrow. We handle WPM matters at ports nationwide and know what CBP needs to see to achieve the best possible outcome.
Call us at (734) 855-4999, send a text, reach us on WhatsApp, or contact us online for a free consultation. For more background on WPM violations and the history of CBP enforcement, see our earlier article: Regulated Wood Packaging Material Customs Violations.