The TREE Act prohibits the import and sale of deforestation goods in U.S. commerce starting in 2029, requiring due diligence statements and imposing civil penalties based on country risk categorization.
Lloyd Doggett
Representative
TX-37
The Trade Responsibly for Environmental Emissions (TREE) Act prohibits the import and sale of "deforestation goods"—commodities linked to deforestation or forest degradation after December 31, 2020—starting in 2029. Importers must submit detailed due diligence statements to Customs and Border Protection, with violations resulting in significant civil penalties, including fines up to 4% of U.S. revenue and potential import bans. The bill also mandates a risk-based country categorization system to guide increased border inspections.
New TREE Act to Ban Imports Linked to Deforestation: Strict Supply Chain Rules Kick Off in 2029.
The TREE Act is designed to scrub deforestation out of the American economy by making it illegal to import or sell products tied to forest destruction. Starting January 1, 2029, the bill bans the import and sale of 'deforestation goods'—specifically cattle, cocoa, palm oil, rubber, soy, and wood—if they were produced on land cleared or degraded after December 31, 2020. This isn't just a suggestion; it’s a hard line in the sand for any company moving these goods through U.S. borders or across state lines.
The Paperwork in Your Pantry
For businesses, from large-scale food processors to local furniture makers, the bill introduces a mandatory 'due diligence statement.' Companies must provide Customs and Border Protection with the exact geolocation and verifiable evidence that their rubber or cocoa didn't come from a recently leveled rainforest (Section 3). If you’re a small business owner sourcing specialty wood or palm oil, this means your suppliers will need to get much more transparent about their origins. The bill gives the government broad power to demand 'any other information' deemed necessary, which could mean a lot of extra administrative work for companies trying to prove they’re playing by the rules.
Global Risk Ratings and Your Wallet
The U.S. Trade Representative will begin ranking countries as High, Moderate, or Low risk based on their deforestation rates (Section 4). This ranking directly affects how often shipments are inspected; for example, at least 9% of goods from High-risk countries will be pulled aside for checks (Section 3). While this is great for the planet, these extra inspections and compliance costs could lead to price bumps for everyday items like chocolate, tires, or beef if supply chains get bottlenecked at the border.
High Stakes for Rule-Breakers
The enforcement side of this bill has real teeth. Companies caught slipping up face civil fines of up to 4% of their total U.S. revenue from the previous year—a massive hit for any corporation. Beyond the cash, repeat offenders can be banned from federal contracts or blocked from importing any goods at all for up to a year. To balance the scales, half of the money collected from these fines will be funneled into aid for underdeveloped countries to help them protect their forests (Section 5), essentially using penalty money to fix the root of the problem.