TREE Act

Reduction in Deforestation: The bill prohibits the import of goods produced from land subject to deforestation on or after December 31, 2020, which targets the conversion of forests to agricultural use or tree plantations (Section 6).

Financial Assistance for Underdeveloped Countries: Half of the total civil penalties collected will be used to provide assistance to underdeveloped countries specifically for managing deforestation and forest degradation (Section 5).

Prioritized Aid for High-Risk Areas: The Secretary of State will give preference to countries categorized as a Level I risk when providing financial assistance related to deforestation and forest-related degradation (Section 5).

Increased Transparency in Supply Chains: Importers are required to provide a due diligence statement that includes descriptions of commodities, quantities, wood names, country of origin, and geolocation coordinates for certain items (Section 3).

Financial Penalties for Operators and Traders: Violators can be assessed civil penalties of up to 4 percent of their total United States revenue for the preceding fiscal year (Section 3).

Loss of Federal Benefits: Entities that violate the act may be ineligible to enter into federal contracts or receive federal funding, grants, and concessions for up to 12 months (Section 3).

Import Bans: In cases of serious or repeat violations, an operator or trader may be prohibited from importing any goods into the United States for a period of up to 12 months (Section 3).

Confiscation of Goods: Any operator or trader found in violation of the act will have each of their deforestation goods confiscated (Section 3).