. /.WORLD TRADE
ORGANIZATIONG/SPS/GEN/107
23 November 1998
(98-4685)
Committee on Sanitary and Phytosanitary Measures
INTERIM RULE AFFFECTING SOLID WOOD PACKAGING
MATERIAL (G/SPS/N/USA/137)
Statement by the United States at the meeting
of 11-12 November 1998
1. The United States measure, notified to the WTO and scheduled to enter into effect on
17 December 1998, amends the regulations for importing logs, lumber and other unmanufactured
wood articles by adding treatment and documenta tion requirements for solid wood packing material
(SWPM) imported from China, incl uding the Hong Kong Special Administrative Region.  The rule
has a 60-day comment period which will end on 17 November 1998.  Interested parties, including
other governments, importers and exporters are invited to comment.
2. This change means that wooden pallets, crating, dunnage, and other wooden packing material
imported into the United States from China will have to be heat-treated, fumigated or treated with
preservatives prior to departure from China.  All shipments leaving China on or after
17 December 1998 will be affected by the new requirements.
3. This action is necessary to control the risk th at solid wood packing material from China could
introduce dangerous plant pests, including forest pests, into the United States, a risk demonstrated bymany recent incidents where exotic pests were detected in solid wood packing material from China.
4. Over the past three to four years, the Asia n long-horned beetle and several other closely
related genera of beetles have been intercepted frequently in merchandise shipments from China.Following a period of increased detections, two infestations of the beetle were discovered, in NewYork and Chicago.
5. The infestations in Illinois and New York pose a significant risk to US forests.  The Asian
long-horned beetle is a large insect that bores holes into trees, in urban and rural areas, resulting in the
death of the tree.  The beetle is known to att ack hardwood tree species found in the United States,
including horse chestnut, poplar, willow, elm, mulberry, black locust, and all maple trees.  Some
experts believe that without measures to control its entry and spread, the Asian long-horned beetle
could be the most devastating forest pest in US history.  Estimates indicate that economic losses
greater than US$40 billion could be experienced by the forest products, fruit, maple syrup, andtourism industries.
6. The United States would like to emphasize that great pains were taken in the development of
this measure to ensure compliance with our obligations under the SPS Agreement, including through
pest risk analysis.  The United States has also performed an environmental assessment.
(a) The United States evaluated several alternatives in developing its measure, including
a complete prohibition on the entry of SWPM from China, and has chosen the leasttrade-restrictive measure to achieve its appropriate level of protection.G/SPS/GEN/107
Page 2
(b) The United States has adopted its measure to the pest risk status of the area where the
product originates.  The Asian long-horned beetle is know to be native only to China.
Further, APHIS's records of interceptions of long-horned beetles from 1985 to thepresent indicate a pattern of entry associated with wood in commerce from China.
(c) The requirements that SWPM be treated prior to entry into the United States is
consistent with the requirement, applicable to all countries exporting to the United
States, that wood used for packing be rendered safe prior to arrival.
(d) The United States promptly notified other Members through the WTO Secretariat on
18 September1998.
7. Understanding that this interim rule imposes a new set of requirements upon Chinese and
Hong Kong, China, exports, our Embassy and Cons ulate Offices in China and Hong Kong, China,
have been diligently working to ensure that the information is available to the public.  Fact sheetshave been prepared about the rule and its requirements and a number of press statements have beenissued.  Television coverage has helped to raise the level of awareness as well.
8. This interim rule is intended to address the problem of serious plant pests, such as the Asian
long-horned beetle, being introduced into the United States on SWPM imported from the mainland of
China.  Due to the close and unique economi c connections between the Hong Kong Special
Administrative Region and the mainland of China, and the fact that about half of the mainland's
exports to the United States come through Hong Kong, China, it is necessary to include the Hong
Kong Special Administrative Region in this interim rule in some form to effectively address the
problem.
9. This interim rule is intended to require certification of all SWPM originating on the mainland
of China as having been treated.  In view of the separate customs territory status and separatequarantine and inspection regime maintained by th e Hong Kong Special Administrative Region with
regard to the mainland of China, and in view of th e fact that a large amount of goods not originating
on the mainland of China or in the Hong Kong Special Administrative Region pass through the Hong
Kong Special Administrative Region on the way to the United States, we are considering changes to
the interim rule in order to avoid unnecessary effect on Hong Kong, China's trade with the United
States and other parts of the world while preventing further introductions of serious plant pests from
Hong Kong, China, or the mainland of China.
10. The United States is concerned about risks to its forests posed by pests imported with SWPM,
and is developing additional regulations to address the risks associated with imported SWPM from
sources other than China, including the Hong K ong Special Administrative Region.  In developing
these regulations, the United States is very conscious of its obligations under the SPS Agreement, andwill make every effort to ensure that disruptions of trade are minimized while achieving our legitimateSPS objectives.
11. We understand that Hong Kong, China, has some concerns and comments on this action.  We
would invite their comments not only within this Committee, but would urge that for full
consideration they be made to our enquiry point and regulatory authority before the close of the
official comment period that does on 17 November  1998 .  All official comments will be fully
considered in any modifications to the scope or procedures identified in the interim rule.
12. The United States has sent technical experts to both China and Hong Kong, China, to consult
on means to comply with the new regulations.  We will be responding to questions and working with
the relevant authorities to assist in facilitating compliance with this important measure.
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