[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6515 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 6515

   To combat illegal deforestation by prohibiting the importation of 
products made wholly or in part of certain commodities produced on land 
       undergoing illegal deforestation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 2023

    Mr. Blumenauer (for himself and Mr. Fitzpatrick) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
    and in addition to the Committees on Foreign Affairs, Financial 
Services, Oversight and Accountability, and the Judiciary, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
   To combat illegal deforestation by prohibiting the importation of 
products made wholly or in part of certain commodities produced on land 
       undergoing illegal deforestation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fostering Overseas Rule of law and 
Environmentally Sound Trade Act of 2023'' or the ``FOREST Act of 
2023''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) According to the Food and Agriculture Organization of 
        the United Nations, 31 percent of land on earth is covered in 
        forests, but that area is rapidly decreasing. An estimated 
        1,600,000 square miles of forest has been converted to other 
        land uses since 1990, with 42,500 square miles converted 
        annually since 2010. Since the early 2000s, \2/3\ of global 
        forest cover loss has occurred in the tropics and subtropics.
            (2) At least 69 percent of tropical forest conversion into 
        commercial agriculture uses between 2013 and 2019 was carried 
        out in contravention of the laws of the country in which the 
        conversion occurred.
            (3) Such illegal forest conversion results in the emission 
        of more than 2.7 gigatons of carbon dioxide equivalent per 
        year, more than the entire annual fossil fuel emissions of 
        India in 2018.
            (4) The global increase of average temperatures can be 
        mitigated by natural climate solutions like rapid and 
        significant reductions in deforestation globally. Cost-
        effective greenhouse gas emission mitigation from forests and 
        land use can provide roughly \1/3\ of the mitigation required 
        by 2030 to hold the increase in the global average temperature 
        below 2 degrees Celsius above pre-industrial levels.
            (5) Forests contain most of the world's terrestrial 
        biodiversity, providing habitats for 80 percent of amphibian 
        species, 75 percent of bird species, 68 percent of mammal 
        species, and 60,000 different species of trees.
            (6) Forests are also an important source of livelihoods, 
        food, and fuel, with more than 1,600,000,000 people depending 
        directly on forests for their livelihoods.
            (7) The Intergovernmental Science-Policy Platform on 
        Biodiversity and Ecosystem Services found in 2019 that the rate 
        of global species extinction is accelerating and is now tens to 
        hundreds of times higher than the average rate over the last 
        10,000,000 years, threatening the loss of 1,000,000 species, 
        and illegal land-use change has an overwhelming relative impact 
        on terrestrial ecosystems.
            (8) Illegal deforestation in many countries is closely 
        associated with violations of the rights of indigenous peoples 
        and local communities and with the exploitation of workers, 
        including through the use of forced labor and child labor, and 
        in many cases is enabled by corruption, criminality, and 
        violence against individuals defending their land rights.
            (9) Congress has taken a number of steps to address the 
        trade in illegal timber to protect legitimate forestry 
        businesses and reduce illegal logging globally, such as, in 
        section 8204 of the Food, Conservation, and Energy Act of 2008 
        (Public Law 110-246; 122 Stat. 2052), amending the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3371 et seq.) to prohibit the 
        importation of illegal plant products, including such products 
        made from illegally logged wood.
            (10) As with illegal timber, agricultural commodities 
        produced on illegally deforested land enter international 
        markets, including the United States, and compete with 
        commodities produced legally.
            (11) The United States is a significant market for products 
        made wholly or in part of commodities such as palm oil, cattle, 
        cocoa, and rubber at risk of being produced on illegally 
        deforested land. For example, in 2022, the United States 
        imported--
                    (A) processed cowhides and beef products valued at 
                more than $1,100,000,000 from Brazil, where a recent 
                study estimated 95 percent of deforestation was not in 
                full compliance with applicable laws; and
                    (B) crude palm oil and palm kernel oil valued at 
                more than $2,600,000,000 and oleochemicals commonly 
                derived from palm oils valued at more than 
                $900,000,000, from Indonesia, where government audits 
                of the sector in recent years have indicated widespread 
                noncompliance with applicable laws regarding 
                deforestation.
            (12) The lack of traceability in the supply chains for such 
        commodities and the absence of importer due diligence 
        requirements increases the risk that United States trade is 
        associated with illegal deforestation and human rights abuses, 
        preventing United States consumers from knowing where or how 
        the goods they purchase were produced and putting companies 
        that ensure legal sourcing at a competitive disadvantage.
    (b) Sense of Congress.--It is the sense of Congress that the United 
States must do more to address illegal deforestation, including--
            (1) avoiding trade that incentivizes foreign governments to 
        allow illegal deforestation;
            (2) assisting foreign governments in eliminating illegal 
        deforestation and limiting all deforestation to the extent 
        practicable;
            (3) requiring that goods entering the United States market 
        be subject to requirements, including the necessary supply 
        chain traceability, to reduce the risk of association with 
        illegal deforestation;
            (4) preventing the United States financial system from 
        being used to launder proceeds from illegal deforestation; and
            (5) providing procurement preference incentives to 
        suppliers of the Federal Government to adopt and implement 
        policies to eliminate goods produced on deforested land from 
        their supply chains.

SEC. 3. PROHIBITION ON IMPORTATION OF COMMODITIES PRODUCED ON ILLEGALLY 
              DEFORESTED LAND AND PRODUCTS MADE FROM SUCH COMMODITIES.

    (a) In General.--The Tariff Act of 1930 is amended by inserting 
after section 527 (19 U.S.C. 1527) the following:

``SEC. 527A. PROHIBITION ON IMPORTATION OF PRODUCTS MADE WHOLLY OR IN 
              PART OF COMMODITIES PRODUCED ON ILLEGALLY DEFORESTED 
              LAND.

    ``(a) In General.--It shall be unlawful for any person to import 
any product made wholly or in part of a covered commodity produced on 
land that undergoes illegal deforestation on or after the date of the 
enactment of the FOREST Act of 2023.
    ``(b) Import Declarations.--
            ``(1) In general.--On and after the date that is one year 
        after the date of the enactment of the FOREST Act of 2023, and 
        subject to paragraph (2), a person may not import a covered 
        product unless the person files electronically upon entry a 
        declaration stating that the person has exercised reasonable 
        care to assess and mitigate the risks that any covered 
        commodity used to make the covered product was produced on land 
        subject to illegal deforestation on or after such date of 
        enactment.
            ``(2) Covered commodities from countries under an action 
        plan.--On and after the date that is one year after an action 
        plan applicable to a foreign country is finalized under 
        subsection (d)(2), a person may not import a covered product 
        containing any covered commodity produced in the country and 
        identified in the action plan unless the person files upon 
        entry a declaration that includes sufficient information to 
        show--
                    ``(A)(i) the supply chain and the point of origin 
                of the covered commodity; and
                    ``(ii) steps taken to assess and mitigate the risks 
                that the point of origin was subject to illegal 
                deforestation on or after the date of the enactment of 
                the FOREST Act of 2023; or
                    ``(B)(i) all possible points of origin that could 
                have contributed to the supply chain of the covered 
                commodity, if mixing or points of aggregation exist 
                within the supply chain; and
                    ``(ii) steps taken to assess and mitigate the risks 
                that any possible points of origin were subject to 
                illegal deforestation on or after such date of 
                enactment.
            ``(3) Guidance.--Not later than 90 days after the date of 
        the enactment of the FOREST Act of 2023, and as appropriate 
        thereafter, the Secretary of Homeland Security--
                    ``(A) shall publish guidance on what constitutes 
                reasonable care under paragraph (1) and sufficient 
                information under paragraph (2), which may include 
                guidance with respect to specific commodities, as 
                appropriate; and
                    ``(B) may, as appropriate, issue guidance about the 
                potential role of third-party certifications assisting 
                importers with meeting the requirements of this 
                section.
            ``(4) Trusted trader program.--
                    ``(A) In general.--Not later than one year after 
                the date of the enactment of the FOREST Act of 2023, 
                the Commissioner of U.S. Customs and Border Protection 
                (in this section referred to as the `Commissioner') 
                shall establish a program to streamline the 
                requirements of this section for importers that have 
                demonstrated--
                            ``(i) a transparent and credible due 
                        diligence system; and
                            ``(ii) a track record of compliance, supply 
                        chain traceability and transparency, and 
                        sourcing of products not made wholly or in part 
                        of a covered commodity produced on land that 
                        undergoes illegal deforestation.
                    ``(B) Audits.--The Commissioner shall carry out, 
                and publish the results of, regular, random audits of 
                participants in the program established under 
                subparagraph (A)--
                            ``(i) to assess the compliance of 
                        participants with the requirements of the 
                        program; and
                            ``(ii) to terminate the participation in 
                        the program of participants found to be in 
                        violation of those requirements.
                    ``(C) Requirements for participants.--Each 
                participant in the program established under 
                subparagraph (A) shall make up-to-date information on 
                implementation of due diligence systems and supply 
                chains publicly available to facilitate third-party 
                monitoring.
                    ``(D) Continued compliance.--Participation in the 
                program does not remove any obligation of a participant 
                to comply with the requirements of subsection (a) or 
                paragraph (1) or (2).
                    ``(E) Consultations.--The Commissioner shall 
                establish the program under subparagraph (A) in 
                consultation with--
                            ``(i) the interagency working group 
                        established under subsection (f);
                            ``(ii) the advisory committee established 
                        under subsection (g); and
                            ``(iii) the public.
    ``(c) Lists of Covered Commodities and Covered Products.--
            ``(1) Initial lists.--Not later than 30 days after the date 
        of the enactment of the FOREST Act of 2023, the United States 
        Trade Representative (in this section referred to as the `Trade 
        Representative') shall publish the following:
                    ``(A) An initial list made up of the following 
                commodities (in this section referred to as `covered 
                commodities'):
                            ``(i) Palm oil.
                            ``(ii) Soybeans.
                            ``(iii) Cocoa.
                            ``(iv) Cattle.
                            ``(v) Rubber.
                    ``(B) An initial list made up of the following 
                products made wholly or in part of a covered commodity 
                (in this section referred to as `covered products'):
                            ``(i) Palm oil or palm oil products 
                        classifiable under any of the following 
                        headings or subheadings of the HTS:


``1511................................  2905.17.00...................  3823.11.00
1513.21.00............................  2905.45.00...................  3823.12.00
1513.29.00............................  2915.70.01...................  3823.19
2306.60.00............................  2915.90......................  3823.70.
 

                            ``(ii) Soybeans or soybean products 
                        classifiable under heading 1201 or 1507 or 
                        subheading 2304.00.00 of the HTS.
                            ``(iii) Cocoa or cocoa products 
                        classifiable under heading 1803 or 1806 or 
                        subheading 1801.00.00, 1802.00.00, 1804.00.00, 
                        or 1805.00.00, of the HTS.
                            ``(iv) Cattle or cattle products 
                        classifiable under any of the following 
                        headings or subheadings of the HTS:


``0201................................  0206.21.00...................  1602.50
0202..................................  0206.22.00...................  4104
0206.10.00............................  0206.29.00...................  4107.
 

                            ``(v) Rubber or rubber products 
                        classifiable under heading 4001 or 4011 of the 
                        HTS.
            ``(2) Reviews and updates.--
                    ``(A) In general.--Not less frequently than 
                annually, the Trade Representative shall--
                            ``(i) review the list of covered 
                        commodities published under subparagraph (A) of 
                        paragraph (1) and the list of covered products 
                        published under subparagraph (B) of that 
                        paragraph to assess whether covered commodities 
                        or covered products, as the case may be, should 
                        be added to or removed from the lists to ensure 
                        that the scope of the lists is sufficient to 
                        deter illegal deforestation and to ensure that 
                        neither commodities produced in the United 
                        States nor imported commodities that were not 
                        produced on illegally deforested land are 
                        displaced by imported commodities produced on 
                        illegally deforested land;
                            ``(ii) consult and solicit relevant 
                        information from the interagency working group 
                        established under subsection (f) and the 
                        advisory committee established under subsection 
                        (g) regarding the list of covered commodities 
                        published under subparagraph (A) of paragraph 
                        (1) and the list of covered products published 
                        under subparagraph (B) of that paragraph; and
                            ``(iii) publish updated lists based on the 
                        review under clause (i) and the consultation 
                        under clause (ii).
                    ``(B) Exclusions from updates.--
                            ``(i) Additions.--The Trade Representative 
                        may not add under subparagraph (A) to the list 
                        of covered commodities published under 
                        paragraph (1)(A) a commodity for which an 
                        import declaration is required under section 
                        3(f) of the Lacey Act Amendments of 1981 (16 
                        U.S.C. 3372(f)).
                            ``(ii) Removals.--The Trade Representative 
                        may not remove a commodity under subparagraph 
                        (A) from the list of covered commodities 
                        published under paragraph (1)(A) solely because 
                        an import declaration is required under section 
                        3(f) of the Lacey Act Amendments of 1981 (16 
                        U.S.C. 3372(f)) with respect to the commodity.
                    ``(C) Effect on import declarations.--Any addition 
                under subparagraph (A) to the list of covered products 
                under paragraph (1)(B) shall be subject to the 
                declaration requirement under subsection (b) on and 
                after the date that is one year after the updated list 
                including the addition is published.
    ``(d) Action Plans for Countries Without Adequate and Effective 
Protection Against Illegal Deforestation.--
            ``(1) Identification of countries.--
                    ``(A) In general.--Not later than 180 days after 
                the date of the enactment of the FOREST Act of 2023, 
                the Trade Representative shall--
                            ``(i) identify foreign countries without 
                        adequate and effective protection against 
                        illegal deforestation for the production of 
                        commodities likely to enter the United States; 
                        and
                            ``(ii) publish in the Federal Register--
                                    ``(I) a list of the countries 
                                identified under clause (i); and
                                    ``(II) data and analysis related to 
                                the considerations described in 
                                subparagraph (B).
                    ``(B) Considerations.--In identifying a foreign 
                country under subparagraph (A), the Trade 
                Representative shall consider--
                            ``(i) trends in illegal deforestation in 
                        that country;
                            ``(ii) whether policies and practices of 
                        the government of the country provide adequate 
                        and effective enforcement against illegal 
                        deforestation;
                            ``(iii) trends in the capacity and 
                        effectiveness of enforcement against illegal 
                        deforestation by the country; and
                            ``(iv) the incidence of violence against, 
                        and other violations of the rights of, 
                        indigenous peoples and local residents in the 
                        country in connection with illegal 
                        deforestation.
                    ``(C) Reassessment.--Not less frequently than every 
                2 years, the Trade Representative shall assess whether 
                additional foreign countries should be identified under 
                subparagraph (A).
            ``(2) Action plans.--
                    ``(A) In general.--The Trade Representative shall 
                publish in the Federal Register an action plan with 
                respect to each foreign country identified under 
                paragraph (1) not later than 2 years after the date on 
                which the country is identified under that paragraph.
                    ``(B) Involvement of foreign country and public.--
                The Trade Representative shall--
                            ``(i) seek to involve each foreign country 
                        for which the Trade Representative develops an 
                        action plan under subparagraph (A) in the 
                        development of the action plan for that foreign 
                        country; and
                            ``(ii) publish in the Federal Register a 
                        draft of each action plan for public review and 
                        comment before publishing the action plan under 
                        subparagraph (A).
                    ``(C) Goals of action plans.--The Trade 
                Representative shall design an action plan developed 
                under subparagraph (A) with respect to a foreign 
                country to achieve adequate and effective protection 
                against illegal deforestation, including by--
                            ``(i) instituting policies and practices to 
                        prevent illegal deforestation;
                            ``(ii) ensuring sufficient capacity to 
                        enforce relevant laws;
                            ``(iii) establishing processes to 
                        adjudicate and remedy previous illegal 
                        deforestation activities;
                            ``(iv) ensuring comprehensive monitoring, 
                        transparency, and data sharing related to land 
                        ownership and use, deforestation, and potential 
                        impacts to other ecosystems; and
                            ``(v) promoting traceability, transparency, 
                        and data sharing for commodity supply chains.
                    ``(D) Benchmarks.--The Trade Representative shall 
                include in each action plan developed under 
                subparagraph (A) intermediate and final benchmarks, 
                including such legislative, institutional, enforcement, 
                or other actions as the Trade Representative determines 
                to be necessary to demonstrate that the foreign country 
                has achieved the goals described in subparagraph (C).
                    ``(E) Identification of covered commodities.--The 
                Trade Representative shall identify in the action plan 
                developed under subparagraph (A) with respect to a 
                foreign country the specific covered commodities at 
                risk of being produced on illegally deforested land in 
                that country that shall be subject to the declaration 
                requirement under subsection (b)(2).
            ``(3) Petitions for determination of compliance.--
                    ``(A) In general.--A foreign country to which an 
                action plan developed under paragraph (2)(A) applies 
                may petition the Trade Representative to determine that 
                the country has achieved all benchmarks in the action 
                plan and therefore provides adequate and effective 
                protection against illegal deforestation.
                    ``(B) Determination of adequacy and effectiveness 
                of protection.--
                            ``(i) Countries that provide adequate and 
                        effective protection against illegal 
                        deforestation.--If the Trade Representative 
                        determines under subparagraph (A) that a 
                        foreign country to which an action plan 
                        developed under paragraph (2)(A) applies has 
                        achieved all benchmarks in the action plan to 
                        provide adequate and effective protection 
                        against illegal deforestation, the action plan 
                        shall terminate.
                            ``(ii) Countries that fail to provide 
                        adequate and effective protection against 
                        illegal deforestation.--If the Trade 
                        Representative determines under subparagraph 
                        (A) that a foreign country to which an action 
                        plan developed under paragraph (2)(A) applies 
                        has not achieved all benchmarks in the action 
                        plan, the action plan shall remain in force.
    ``(e) Enforcement.--
            ``(1) Administration.--
                    ``(A) In general.--The provisions of this section 
                and any regulations issued under this section shall be 
                enforced, as appropriate, by the Commissioner, the 
                Secretary of Agriculture, the Secretary of the 
                Interior, and the Attorney General.
                    ``(B) Audits.--The Commissioner, in collaboration 
                with the heads of other Federal agencies, shall conduct 
                random audits of importers filing declarations under 
                subsection (b)(1) to ensure such importers are 
                retaining the supporting documentation demonstrating 
                reasonable care was exercised as required by that 
                subsection.
                    ``(C) Agreements.--An official specified in 
                subparagraph (A) may enter into an agreement with any 
                other Federal agency or any State agency or Indian 
                Tribe under which that official may use, with or 
                without reimbursement (as determined by the head of the 
                relevant agency or Indian Tribe), the personnel, 
                services, and facilities of the agency or Indian Tribe 
                for the enforcement of this section and regulations 
                issued under this section.
                    ``(D) Availability of information.--Not later than 
                one year after the date of the enactment of the FOREST 
                Act of 2023, the Commissioner shall develop a process 
                to make information filed with a declaration required 
                by subsection (b)(2) (other than information considered 
                to be confidential business information) available to 
                the public.
            ``(2) Coordination of enforcement.--The Commissioner shall 
        share declarations filed under subsection (b) and other 
        information received by U.S. Customs and Border Protection with 
        the Trade Representative, the Secretary of Agriculture, the 
        Secretary of the Interior, the Attorney General, and the heads 
        of other Federal agencies as needed to ensure effective 
        enforcement of this section.
            ``(3) Notice to importers.--Before taking any enforcement 
        action with respect to an importer suspected of violating 
        subsection (a) or (b), the Commissioner shall--
                    ``(A) notify the importer of the suspected 
                violation; and
                    ``(B) provide the importer with an opportunity to 
                provide additional information to demonstrate that the 
                importer is in compliance with subsections (a) and (b).
            ``(4) Information from outside sources.--Not later than 180 
        days after the date of the enactment of the FOREST Act of 2023, 
        the Commissioner shall establish a process for receiving 
        information from persons outside U.S. Customs and Border 
        Protection indicating that a covered commodity may be being 
        imported in violation of this section.
            ``(5) Report required.--Not later than 2 years after the 
        date of the enactment of the FOREST Act of 2023, and annually 
        thereafter, the Commissioner, with input from the heads of 
        relevant Federal agencies, shall submit to Congress a report on 
        the enforcement of this section that includes, for the year 
        preceding submission of the report--
                    ``(A) the number of audits conducted by Federal 
                agencies of importers of record to detect potential 
                violations of this section;
                    ``(B) the number of instances in which information 
                was submitted to the Commissioner under paragraph (4);
                    ``(C) the number of investigations initiated into 
                possible violations of this section;
                    ``(D) the number of notices to importers under 
                paragraph (3) with respect to such violations;
                    ``(E) the number of such investigations initiated 
                based on information submitted to the Commissioner 
                under paragraph (4);
                    ``(F) the results of cases adjudicated following 
                such an investigation;
                    ``(G) the number of such investigations pending as 
                of the date of the report; and
                    ``(H) an explanation of how information submitted 
                to the Commissioner under paragraph (4) was used to 
                prioritize audits and other checks.
    ``(f) Interagency Working Group.--
            ``(1) In general.--There is established an interagency 
        working group to provide advice and recommendations to the 
        Trade Representative, the Commissioner, and the heads of other 
        relevant Federal agencies on the implementation of this 
        section.
            ``(2) Membership.--The interagency working group 
        established under paragraph (1) shall be composed of 
        representatives of--
                    ``(A) the Department of State;
                    ``(B) the Department of Agriculture;
                    ``(C) U.S. Customs and Border Protection;
                    ``(D) the Office of the United States Trade 
                Representative;
                    ``(E) the United States Agency for International 
                Development;
                    ``(F) the Department of the Interior;
                    ``(G) the Department of Justice; and
                    ``(H) such other Federal agencies as the Trade 
                Representative considers appropriate.
            ``(3) Chairperson.--The representative of the Office of the 
        United States Trade Representative shall serve as the 
        chairperson of the interagency working group established under 
        paragraph (1).
    ``(g) Advisory Committee.--
            ``(1) In general.--The Trade Representative shall establish 
        an advisory committee to provide advice and recommendations to 
        the Trade Representative and the heads of other relevant 
        Federal agencies on the implementation of this section.
            ``(2) Membership.--The advisory committee established under 
        paragraph (1) shall be made up of 14 individuals--
                    ``(A) 5 of whom shall be representatives of 
                institutions of higher education or nongovernmental 
                organizations with expertise relevant to international 
                deforestation, associated human rights abuses, or 
                trade;
                    ``(B) 4 of whom shall be representatives of the 
                covered commodity industry;
                    ``(C) 3 of whom shall be representatives of the 
                covered product industry; and
                    ``(D) 2 of whom shall be representatives of labor 
                organizations.
    ``(h) Consistency With International Agreements.--This section 
shall be applied in a manner consistent with the obligations of the 
United States under international agreements.
    ``(i) Definitions.--In this section:
            ``(1) Deforestation.--The term `deforestation' means a loss 
        of natural forest resulting from the whole or partial 
        conversion of natural forest to--
                    ``(A) agricultural use or another non-forest land 
                use; or
                    ``(B) a tree plantation.
            ``(2) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States.
            ``(3) Illegal deforestation.--The term `illegal 
        deforestation' means deforestation conducted in violation of 
        the law (or any action that has the force and effect of law) of 
        the country in which the deforestation is occurring, 
        including--
                    ``(A) anti-corruption laws;
                    ``(B) laws relating to land tenure rights; and
                    ``(C) laws relating to the free, prior, and 
                informed consent of indigenous peoples and local 
                communities.
            ``(4) Indian tribe.--The term `Indian Tribe' has the 
        meaning given the term `Indian tribe' in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 5304).
            ``(5) Natural forest.--The term `natural forest' means a 
        natural arboreal ecosystem that--
                    ``(A) has a species composition a significant 
                percentage of which is native species; and
                    ``(B) includes--
                            ``(i) a native tree canopy cover of more 
                        than 10 percent over an area of not less 0.5 
                        hectares; or
                            ``(ii) other wooded land with a combined 
                        cover of shrubs, bushes, and trees of more than 
                        10 percent over an area of not less than 0.5 
                        hectares.
            ``(6) Point of origin.--
                    ``(A) In general.--The term `point of origin', with 
                respect to a covered commodity, means the geographical 
                location, identified by the smallest administrative 
                unit of land reasonably possible (such as a concession, 
                farm, ranch, property, or other type of public or 
                private land allocation), where the covered commodity 
                was produced.
                    ``(B) Application to livestock.--In the case of 
                livestock, the term `point of origin' includes all 
                geographic locations where that animal existed from 
                birth to slaughter.
            ``(7) Produce.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), the term `produce' means growing, 
                harvesting, rearing, collecting, extracting, or 
                otherwise producing a commodity.
                    ``(B) Exclusion.--The term `produce' does not 
                include refining or manufacturing.
            ``(8) Supply chain.--The term `supply chain' means the end-
        to-end process for getting commodities or products to the 
        United States, beginning at the point of origin and including 
        all points until entry into the United States, including 
        refiners, manufacturers, suppliers, distributors, or vendors.
            ``(9) Wholly or in part.--
                    ``(A) In general.--The term `wholly or in part' 
                shall have the meaning given that term in regulations.
                    ``(B) Regulations.--Regulations prescribed under 
                section 3(b) of the FOREST Act of 2023 shall define the 
                term `wholly or in part' in a manner designed to limit 
                the administrative burden on the importer of record 
                while deterring illegal deforestation. The definition 
                of the term may be commodity specific as needed.''.
    (b) Regulations.--Not later than one year after the date of the 
enactment of this Act, the Commissioner of U.S. Customs and Border 
Protection and the United States Trade Representative shall publish 
final regulations for implementing section 527A of the Tariff Act of 
1930, as added by subsection (a).

SEC. 4. IMPLEMENTATION OF LACEY ACT IMPORT DECLARATIONS FOR PULP AND 
              PAPER PRODUCTS.

    If the requirement for an import declaration under section 3(f)(1) 
of the Lacey Act Amendments of 1981 (16 U.S.C. 3372(f)(1)) has not been 
fully implemented with respect to products classified under chapters 47 
and 48 of the Harmonized Tariff Schedule of the United States by the 
date of the enactment of this Act, the Secretary of Agriculture shall--
            (1) take such actions as are necessary to ensure that the 
        requirement is fully enforced with respect to those products on 
        and after the date that is 210 days after such date of 
        enactment; and
            (2) not later than 30 days after such date of enactment, 
        publish a notice in the Federal Register that the requirement 
        will be fully enforced with respect to those products on and 
        after the date specified in paragraph (1).

SEC. 5. FOREIGN ASSISTANCE FOR COUNTRIES COMMITTED TO ELIMINATING 
              DEFORESTATION.

    (a) Statement of Policy.--It is the policy of the United States to 
assist foreign governments in eliminating illegal deforestation and to 
limit all deforestation to the extent practicable.
    (b) Establishment of Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States a fund, consisting of amounts authorized to 
        be appropriated or appropriated under paragraph (2).
            (2) Deposits to the fund.--There are authorized to be 
        appropriated, and there are appropriated, to the fund 
        established under paragraph (1) for fiscal year 2023 and each 
        fiscal year thereafter an amount equivalent to the amount of 
        penalties estimated by the Secretary of the Treasury to be 
        collected under section 527A(e) of the Tariff Act of 1930, as 
        added by section 3, in that fiscal year.
            (3) Availability of funds.--Amounts in the fund established 
        under paragraph (1) shall be available as follows:
                    (A) 40 percent shall be available to the Secretary 
                of State--
                            (i) to provide financial and technical 
                        assistance and other resources to the 
                        governments of countries and implementing 
                        partners that are working to complete the 
                        benchmarks in action plans developed under 
                        section 527A(d) of the Tariff Act of 1930, as 
                        added by section 3; and
                            (ii) to be transferred, notwithstanding 
                        section 3302 of title 31, United States Code, 
                        to the Administrator of the United States 
                        Agency for International Development and the 
                        heads of other appropriate Federal agencies to 
                        provide assistance under clause (i).
                    (B) 50 percent shall be available to the 
                Commissioner of U.S. Customs and Border Protection--
                            (i) to carry out the duties of the 
                        Commissioner under section 527A of the Tariff 
                        Act of 1930, as added by section 3; and
                            (ii) to be transferred, notwithstanding 
                        section 3302 of title 31, United States Code, 
                        to the Secretary of Agriculture and the 
                        Secretary of the Interior for monitoring, 
                        audits, enforcement, and other duties assigned 
                        under such section 527A.
                    (C) 10 percent shall be available to the United 
                States Trade Representative to carry out the duties of 
                the Trade Representative under such section 527A.
    (c) Definitions.--In this section, the terms ``deforestation'' and 
``illegal deforestation'' have the meanings given those terms in 
section 527A(i) of the Tariff Act of 1930, as added by section 3.

SEC. 6. INCLUSION OF ILLEGAL DEFORESTATION AS SPECIFIED UNLAWFUL 
              ACTIVITY.

    Section 1956(c)(7)(B) of title 18, United States Code, is amended--
            (1) in clause (vi), by striking ``; or'' and inserting a 
        semicolon;
            (2) in clause (vii), by striking the semicolon and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(viii) any act, engaged in knowingly, to 
                        carry out, enable, or encourage illegal 
                        deforestation (as defined in section 527A(i) of 
                        the Tariff Act of 1930).''.

SEC. 7. PROCUREMENT PREFERENCE FOR COMMODITIES NOT PRODUCED ON LAND 
              SUBJECT TO DEFORESTATION.

    (a) In General.--Chapter 47 of title 41, United States Code, is 
amended by adding at the end the following:
``Sec. 4715. Procurement preference for commodities not produced on 
              land subject to deforestation
    ``(a) In General.--In comparing proposals for the purpose of 
awarding a contract involving any product made wholly or in part of a 
covered commodity, the head of an executive agency shall reduce the bid 
price by 10 percent if the contractor demonstrates to the satisfaction 
of the head of the agency that--
            ``(1) the contractor has a policy described in subsection 
        (b) in effect; and
            ``(2) the policy and data on monitoring and enforcement of 
        that policy are publicly available and updated not less 
        frequently than annually.
    ``(b) Policy Described.--A policy described in this subsection is a 
policy that includes, at a minimum, for each covered commodity included 
in a product described in subsection (a), the following:
            ``(1) Measures to identify the point of origin of the 
        commodity and ensure compliance with the policy when supply 
        chain risks are present.
            ``(2) Data detailing the complete list of direct and 
        indirect suppliers and supply chain traceability information, 
        including refineries, processing plants, farms, and 
        plantations, and their respective owners, parent entities, and 
        farmers, maps, and geolocations, for the commodity.
            ``(3) Measures taken to ensure that the commodity does not 
        contribute to deforestation.
            ``(4) Measures taken to ensure compliance with the laws of 
        any country in which the commodity is produced.
    ``(c) Buy American Requirements.--Subsection (a) does not affect 
the application of the requirements of chapter 83 of title 41, United 
States Code.
    ``(d) Definitions.--In this section, the terms `covered commodity', 
`deforestation', `point of origin', and `produce' have the meanings 
given those terms in section 527A(i) of the Tariff Act of 1930.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 4714 the 
following:

``4715. Procurement preference for commodities not produced on land 
                            subject to deforestation.''.
                                 <all>