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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8744 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8744
To prohibit the import of certain goods produced, sourced, made, or
otherwise derived from deforestation and the sale of such items in
interstate commerce, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 12, 2026
Mr. Doggett (for himself, Ms. Ansari, Ms. Brownley, Mr. Casar, Mr.
Casten, Ms. Castor of Florida, Mr. Cleaver, Mr. Cohen, Ms. Escobar, Mr.
Frost, Mrs. Grijalva, Ms. Jayapal, Mr. Johnson of Georgia, Ms. Lee of
Pennsylvania, Mr. McGovern, Ms. Norton, Mr. Pocan, Mr. Quigley, Mr.
Raskin, Ms. Schakowsky, Ms. Tlaib, and Ms. Williams of Georgia)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committees on Foreign Affairs,
and Energy and Commerce, 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 prohibit the import of certain goods produced, sourced, made, or
otherwise derived from deforestation and the sale of such items in
interstate commerce, 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 ``Trade Responsibly for Environmental
Emissions Act'' or the ``TREE Act''.
SEC. 2. PROHIBITION ON IMPORT AND SALE IN INTERSTATE COMMERCE OF
DEFORESTATION GOODS.
(a) In General.--Beginning on January 1, 2029, it shall be unlawful
for any operator or trader--
(1) to import into the United States any deforestation
good; or
(2) introduce into interstate commerce, manufacture for
introduction into interstate commerce, or sell, trade, or
advertise in interstate commerce in the United States any
deforestation good.
(b) False Labeling.--It shall be unlawful for any operator or
trader to make or submit any false record, account, label, or other
information, with respect to any deforestation good that has been, or
is intended to be, imported into the United States.
SEC. 3. ENFORCEMENT.
(a) Due Diligence Statement.--The Commissioner of Customs and
Border Protection shall require a due diligence statement that complies
with subsection (b) to be provided by each operator or trader who
imports into the United States a covered commodity.
(b) Requirements.--The due diligence statement required under
subsection (a) shall contain--
(1) a description of each covered commodity, that
includes--
(A) the trade name of each such commodity;
(B) the quantity and required unit of measurement,
as determined by the Commissioner of Customs and Border
Protection, of each such commodity;
(C) with respect to each such commodity that is
wood or is otherwise produced using wood, the common
and scientific names of such wood; and
(D) with respect to each such commodity coming from
countries categorized under section 3 as a Level I or
Level II risk, the country of origin and geolocation
coordinates, as determined practical by the
Commissioner of Customs and Border Protection;
(2) the name, postal address, and contact information of
each person that supplied to such operator or trader each
covered commodity;
(3) adequately conclusive and verifiable information that
the covered products are deforestation free; and
(4) any other information the Commissioner of Customs and
Border Protection determines necessary to determine that each
covered commodity is not a deforestation good and has been
produced in accordance with the relevant law regarding
deforestation of the country of origin.
(c) Civil Penalties.--
(1) In general.--In addition to any civil or criminal
penalty that may be imposed under title 18, United States Code,
or any other provision of law, any operator or trader who
violates this Act, or any regulation issued under this Act,
shall--
(A) be assessed a civil penalty in an amount not
more than 4 percent of the total United States revenue
of such operator or trader for the fiscal year
preceding the issuance of such fine;
(B) have each deforestation good confiscated; and
(C) for a period of not more than 12 months, be
ineligible--
(i) to enter into any contract with any
Federal agency for the procurement of goods,
materials, and services; and
(ii) for any Federal funding, grants, and
concessions.
(2) Determining fine.--In calculating each fine required
under paragraph (1), the United States Trade Representative may
consider--
(A) the environmental damage caused by the
deforestation good;
(B) the ability of the violator to pay;
(C) ensure such fine effectively deprives the
violator of the economic benefits derived from
importing the deforestation good; and
(D) gradually increase such fine for each repeat
violation until the fine is in an amount equal to 4
percent of the total United States revenue of the
violator for the fiscal year preceding the issuance of
such fine.
(3) Serious or repeat violations.--In the case of a serious
or repeat violation, an operator or trader shall be prohibited
from importing into the United States any good for a period of
not more than 12 months.
(4) Determining serious violation.--In determining what
constitutes a serious violation under paragraph (3), the United
States Trade Representative shall consider--
(A) the nature, circumstances, extent, and gravity
of the violation;
(B) the degree of culpability; and
(C) such other matters as the United States Trade
Representative, in consultation with the Commissioner
of Customs and Border Protection, determines necessary.
(d) Increased Inspection Rates.--
(1) In general.--Beginning on December 31, 2029, based on
the country categorization list required under section 3(a)(1),
the Commissioner of Customs and Border Protection shall
implement the following increased inspection rates:
(A) Of the goods originating from a country, or
region thereof, categorized by the United States Trade
Representative under section 3(a)(1) as a Level I risk,
not less than 9 percent of such goods imported into the
United States in a calendar year shall be inspected for
deforestation goods.
(B) Of the goods originating from a country, or
region thereof, categorized by the United States Trade
Representative under section 3(a)(1) as a Level II
risk, not less than 3 percent of such goods imported
into the United States in a calendar year shall be
inspected for deforestation goods.
(C) Of the goods originating from a country, or
region thereof, categorized by the United States Trade
Representative under section 3(a)(1) as a Level III
risk, not less than 1 percent of such goods imported
into the United States in a calendar year shall be
inspected for deforestation goods.
(2) Rulemaking authority.--The Commissioner of Customs and
Border Protection may, in consultation with the Attorney
General, Secretary of State, United States Trade
Representative, Secretary of Commerce, and Administrator of the
United States Agency for International Development, promulgate
such rules and regulations as such Commissioner determines
necessary to carry out paragraph (1).
(e) Interstate Commerce Prohibition.--Not later than January 1,
2029, the Secretary of the Interior shall by regulation establish a
plan to enforce the prohibition under section 1(a)(2).
SEC. 4. COUNTRY CATEGORIZATION BASED ON RISK POSED OF IMPORTING
DEFORESTATION GOODS.
(a) Country Categorization.--
(1) In general.--The United States Trade Representative
shall--
(A) not later than December 1, 2029, and every
other year thereafter, categorize every country under
one of the three risk levels described under subsection
(b), except as provided under paragraph (2), based on
the risk that imports originating from such country are
deforestation goods; and
(B) not later than December 31, 2029, and every
other year thereafter--
(i) publish such categorization on the
internet website of the United States Trade
Representative; and
(ii) formally notify each country, as
described under subsection (c)(4), of the risk
level of such country and of each regional
categorization of such country under paragraph
(2).
(2) Regional categorizations.--A region within a country
may be categorized by the United States Trade Representative
under a different risk level under subsection (b) than the risk
level such country is categorized under if sufficient
information is available for the United States Trade
Representative to determine that such region warrants a
different categorization than the country such region is in.
(3) Interim categorization.--For the period beginning on
January 1, 2029, and ending on the date on which the United
States Trade Representative completes the risk level
categorization required under paragraph (1), each country, and
each region thereof, shall be categorized under subsection
(b)(2) as a Level II risk.
(b) Risk Levels.--
(1) Level i.--A country, or region thereof, shall be
categorized as a ``Level I'' if the imports originating from
such country, or region thereof, pose a high risk of being
deforestation goods.
(2) Level ii.--A country, or region thereof, shall be
categorized as a ``Level II'' if the imports originating from
such country, or region thereof, pose a moderate risk of being
deforestation goods.
(3) Level iii.--A country, or region thereof, shall be
categorized as a ``Level III'' if the imports originating from
such country, or region thereof, pose a low risk of being
deforestation goods.
(c) Determining Risk Level.--
(1) Assessment.--The risk level categorization required
under subsection (a)(1) shall be based on an objective and
transparent assessment, determined by the United States Trade
Representative, considering the latest scientific evidence and
internationally recognized sources, and shall be primarily
based on the following criteria:
(A) The rate of deforestation and forest
degradation since December 31, 2020, within the
country, or region thereof, being categorized.
(B) The rate at which the country, or region
thereof, being categorized is expanding the use of
agriculture land for covered products, covered
commodities, and covered sources.
(C) The production trends of the covered products,
covered commodities, and covered sources within the
country, or region thereof, being categorized.
(2) Additional considerations.--The assessment required
under paragraph (1) shall also consider the following:
(A) Information related to the effective covering
of emissions and removals from agriculture, forestry,
and land use in the nationally determined contribution
to the United Nations Framework Convention on Climate
Change (adopted in Rio de Janeiro, Brazil, in June
1992) that may be submitted by the country, or region
thereof, being categorized, regional authorities and
operators in such country, or region thereof,
nongovernmental organizations, indigenous peoples,
local communities, civil society organizations and any
other interested party the United States Trade
Representative determines appropriate.
(B) Agreements and other instruments between the
country, or region thereof, being categorized and the
United States that address deforestation, forest
degradation, and compliance with section 1.
(C) Whether the country, or region thereof, being
categorized has national, regional, or local laws in
place to combat deforestation and forest degradation,
including whether such country, or region thereof,
has--
(i) implemented Article 5 the decision by
the United Nations Framework Convention on
Climate Change's 21st Conference of Parities in
Paris, France, adopted on December 12, 2015
(commonly referred to as the ``Paris
Agreement'');
(ii) whether such country effectively
enforces such laws; and
(iii) whether the penalties imposed under
such laws are of sufficient severity to deprive
the penalized operator or trader of the
benefits gained from engaging in deforestation
or forest degradation.
(D) Whether the country, or region thereof, being
categorized has transparent data on deforestation and
forest degradation and, where applicable, the existence
of, compliance with, or effective enforcement of laws
protecting human rights, the rights of indigenous
peoples, and local communities.
(E) Sanctions imposed by the Security Council of
the United Nations or the United States on the import
or export of deforestation goods.
(F) Risk classification determined by the European
Union under the European Union Deforestation
Regulation.
(3) Engagement.--The United States Trade Representative
shall engage with each country, or region thereof, that is
categorized, at risk of being categorized as a Level I risk,
with the objective of reducing the level of risk of such
country or region thereof.
(4) Notification.--Upon finalizing the second risk-level
categorization required under subsection (a)(1), and each risk-
level categorization thereafter, the United States Trade
Representative shall--
(A) formally notify each country of a change from
the most recently published risk-level categorization
under subsection (a)(2) in the risk-level of such
country or region thereof;
(B) provide not longer than 6 months for such
country to respond; and
(C) include in such notification the following:
(i) Each reason for the intention to change
the risk level of the country or region
thereof.
(ii) In the case of an increase in risk
level, an invitation to respond in writing to
provide information on measures taken by such
country to remedy the situation.
(iii) The consequences such country will
face because of a change in the risk level of
such country or region thereof.
(d) Duty To Update.--The United States Trade Representative shall
update the risk-level categorization required under subsection (a)(1)
earlier than required under such subsection if any new evidence is
received that the United States Trade Representative determines affects
the risk-level categorization of a country or region thereof.
(e) Rulemaking Authority.--The United States Trade Representative
may, in consultation with the Attorney General, Secretary of State,
Commissioner of Customs and Border Protection, Secretary of Commerce,
and Administrator of the United States Agency for International
Development, promulgate such rules and regulations as such
representative determines necessary to carry out this paragraph.
SEC. 5. INTERNATIONAL ASSISTANCE.
(a) Assistance to Level I Countries.--The Secretary of State shall
provide preference to countries categorized under section 1(d)(2)(A) as
a Level I risk when providing financial assistance related to
deforestation and forest-related degradation.
(b) Revenue From Penalties.--With respect to all amounts collected
in the form of civil penalties pursuant to section 1, and
notwithstanding any other provision of law, the Secretary of the
Treasury shall use an amount equal to half of the total amount of
penalties collected in the preceding fiscal year to provide assistance
to under developed countries with respect to deforestation and forest-
degradation management.
SEC. 6. DEFINITIONS.
In this Act:
(1) Agriculture use.--The term ``agriculture use'' means
the use of land for the purpose of--
(A) agriculture, including agricultural plantations
and set-aside agricultural areas; or
(B) rearing livestock.
(2) Covered commodity.--The term ``covered commodity''
means each of the following:
(A) Cattle.
(B) Cocoa.
(C) Palm oil.
(D) Rubber.
(E) Soy.
(F) Wood.
(3) Covered product.--The term ``covered product'' means
any item that has been fed with, made with, contains, or was
otherwise produced with a covered commodity.
(4) Covered source.--The term ``covered source'' means any
precursor to a covered commodity that is used to produce such
commodity.
(5) Deforestation.--The term ``deforestation'' means the
loss of a forest resulting from the whole or partial conversion
of such forest to--
(A) agricultural use or another non forest land
use; or
(B) a tree plantation.
(6) Deforestation good.--The term ``deforestation good''
means each of the following, only if produced, sourced, made,
or otherwise derived from land, on or after December 31, 2020,
that is subject to deforestation or forest degredation:
(A) A covered product.
(B) A covered commodity.
(C) A covered source.
(7) Forest.--The term ``forest'' means land spanning more
than 0.5 hectares with trees higher than 5 meters and a canopy
of more than 10 percent, or trees able to reach those
thresholds in situ, excluding land that is predominately under
agricultural or urban land use.
(8) Forest degradation.--The term ``forest degradation''--
(A) means human-driven structural changes to forest
cover that result in a change in species composition,
structure, or function of the forest, which can be
indicated by factors such as--
(i) impacts to carbon storage and other
ecosystem services;
(ii) native species abundance and
composition; and
(iii) tree age class distribution; and
(B) includes the conversion of--
(i) primary forests, naturally regenerating
forests, or old growth forests into plantation
forests or into other wooded land; and
(ii) primary forests or old growth forests
into temporarily unstocked forests due to
clearcutting or other harvesting.
(9) Operator.--The term ``operator'' means any person who,
in the course of commercial activity--
(A) places relevant products into the interstate
commerce of the United States; or
(B) imports relevant products into the United
States.
(10) Trader.--The term ``trader'' means any person in the
supply chain other than the operator who, in the course of a
commercial activity, makes a product available to be imported
into the United States.
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