---
kind: "section"
citation: "16 U.S.C. § 620b"
title: "16"
title_heading: "Conservation"
number: "620b"
heading: "Limitations on substitution of unprocessed Federal timber for unprocessed timber exported from private lands"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/620b"
units:
  - "Chapter 4 — Protection of Timber, and Depredations"
---

# §620b. Limitations on substitution of unprocessed Federal timber for unprocessed timber exported from private lands

- (a) **Direct substitution—**
  - (1) Except as provided in [paragraph (3)](#a-3) and [subsection (c)](#c), no [person](/usc/16/450rr–1.md?p=b) may purchase directly from any department or agency of the United States [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) west of the 100th meridian in the contiguous 48 [States](/usc/16/544.md?p=r) if—
    - (A) such [unprocessed timber](/usc/16/620e.md?p=9-A) is to be used in substitution for exported [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6); or
    - (B) such [person](/usc/16/450rr–1.md?p=b) has, during the preceding 24-month period, exported [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6).
  - (2) Notwithstanding [paragraph (1)](#a-1)—
    - (A) Federal timber purchased pursuant to a contract entered into between the purchaser and the [Secretary concerned](/usc/16/620e.md?p=8) before the date on which regulations to carry out this subsection are issued under [section 620f of this title](/usc/16/620f.md) shall be governed by the regulations of the [Secretary concerned](/usc/16/620e.md?p=8) in effect before such date that restrict the substitution of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) for exported timber originating from [private lands](/usc/16/620e.md?p=6);
    - (B) in the 1-year period beginning on August 20, 1990, any [person](/usc/16/450rr–1.md?p=b) who operates under a Cooperative Sustained Yield [Unit](/usc/16/430f–7.md?p=4) Agreement, and who has an historic export quota shall be limited to entering into contracts under such a quota to a volume equal to not more than 66 percent of the [person](/usc/16/450rr–1.md?p=b)’s historic export quota used during fiscal year 1989;
    - (C) a [person](/usc/16/450rr–1.md?p=b) referred to in [subparagraph (B)](#a-2-B) shall reduce the [person](/usc/16/450rr–1.md?p=b)’s remaining substitution volume by an equal amount each year thereafter such that no volume is substituted under such a quota in fiscal year 1995 or thereafter; and
    - (D) the 24-month period referred to in [paragraph (1)(B)](#a-1-B) shall not apply to any [person](/usc/16/450rr–1.md?p=b) who—
      - (i) before August 20, 1990, has, under an historic export quota approved by the [Secretary concerned](/usc/16/620e.md?p=8), purchased [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) west of the 100th meridian in the contiguous 48 [States](/usc/16/544.md?p=r) in substitution for exported [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6);
      - (ii) certifies to the [Secretary concerned](/usc/16/620e.md?p=8), within 3 months after August 20, 1990, that the [person](/usc/16/450rr–1.md?p=b) will, within 6 months after August 20, 1990, cease exporting [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6); and
      - (iii) ceases exports in accordance with such certification.
  - (3) **Applicability.—** In the case of the purchase by a [person](/usc/16/450rr–1.md?p=b) of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) west of the 119th meridian in the [State](/usc/16/590q.md?p=a) of Washington, [paragraph (1)](#a-1) shall apply only if—
    - (A) the [private lands](/usc/16/620e.md?p=6) referred to in [paragraph (1)](#a-1) are owned by the [person](/usc/16/450rr–1.md?p=b); or
    - (B) the [person](/usc/16/450rr–1.md?p=b) has the exclusive right to harvest timber from the [private lands](/usc/16/620e.md?p=6) described in [paragraph (1)](#a-1) during a period of more than 7 years, and may exercise that right at any time of the [person](/usc/16/450rr–1.md?p=b)’s choosing.
- (b) **Indirect substitution—**
  - (1) **In general—** Except as provided in [paragraph (2)](#b-2), no [person](/usc/16/450rr–1.md?p=b) may, beginning 21 days after August 20, 1990, purchase from any other [person](/usc/16/450rr–1.md?p=b) [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) west of the 100th meridian in the contiguous 48 [States](/usc/16/544.md?p=r) if such [person](/usc/16/450rr–1.md?p=b) would be prohibited from purchasing such timber directly from a department or agency of the United States. [Acquisitions](/usc/16/620e.md?p=1) of western red cedar which are domestically processed into finished products to be sold into domestic or international markets are exempt from the prohibition contained in this paragraph.
  - (2) **Exceptions—**
    - (A) The [Secretary](/usc/16/410r–5.md?p=c-1) of Agriculture shall, as soon as practicable but not later than 9 months after August 20, 1990, establish, by rule, a limited amount of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) described in [subparagraph (B)](#b-2-B) which may be purchased by a [person](/usc/16/450rr–1.md?p=b) otherwise covered by the prohibition contained in [paragraph (1)](#b-1). Such limit shall equal—
      - (i) the amount of such timber acquired by such [person](/usc/16/450rr–1.md?p=b), based on the higher of the applicant’s actual timber purchasing receipts or the appropriate Federal agency’s records, during fiscal years 1988, 1989, and 1990, divided by 3, or
      - (ii) 15 million board feet,

      whichever is less, except that such limit shall not exceed such [person](/usc/16/450rr–1.md?p=b)’s proportionate share, with respect to all [persons](/usc/16/450rr–1.md?p=b) covered under this paragraph, of 50 million board feet.

    - (B) The [Federal lands](/usc/16/620e.md?p=2) referred to in [subparagraph (A)](#b-2-A) are [Federal lands](/usc/16/620e.md?p=2) administered by the United States Forest Service Region 6 that are located north of the Columbia River from its mouth and east to its first intersection with the 119th meridian, and from that point north of the 46th parallel and east.
    - (C) Any [person](/usc/16/450rr–1.md?p=b) may sell, trade, or otherwise exchange with any other [person](/usc/16/450rr–1.md?p=b) the rights obtained under [subparagraph (A)](#b-2-A), except that such rights may not be sold, traded, or otherwise exchanged to [persons](/usc/16/450rr–1.md?p=b) already in possession of such rights obtained under [subparagraph (A)](#b-2-A).
    - (D) Federal timber purchased from [Federal lands](/usc/16/620e.md?p=2) described in [subparagraph (B)](#b-2-B) pursuant to a contract entered into between the purchaser and the [Secretary](/usc/16/410r–5.md?p=c-1) of Agriculture before the date on which regulations to carry out this subsection are issued under [section 620f of this title](/usc/16/620f.md) shall be governed by the regulations of the [Secretary](/usc/16/410r–5.md?p=c-1) of Agriculture in effect before such date that restrict the substitution of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) for exported timber originating from [private lands](/usc/16/620e.md?p=6).
- (c) **Sourcing areas—**
  - (1) **In general—** The prohibitions contained in subsections [(a)](#a) and [(b)](#b) shall not apply with respect to the [acquisition](/usc/16/620e.md?p=1) of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) within a sourcing [area](/usc/16/539m–1.md?p=1-A) west of the 100th meridian in the contiguous 48 [States](/usc/16/544.md?p=r) approved by the [Secretary concerned](/usc/16/620e.md?p=8) under this subsection by a [person](/usc/16/450rr–1.md?p=b) who—
    - (A) in the previous 24 months, has not exported [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6) within the sourcing [area](/usc/16/539m–1.md?p=1-A); and
    - (B) during the period in which such approval is in effect, does not export [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6) within the sourcing [area](/usc/16/539m–1.md?p=1-A).

    The [Secretary concerned](/usc/16/620e.md?p=8) may waive the 24-month requirement set forth in [subparagraph (A)](#c-1-A) for any [person](/usc/16/450rr–1.md?p=b) who, within 3 months after August 20, 1990, certifies that, within 6 months after August 20, 1990, such [person](/usc/16/450rr–1.md?p=b) will, for a period of not less than 3 years, cease exporting [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6) within the sourcing [area](/usc/16/539m–1.md?p=1-A).

  - (2) **Requirements for application for sourcing areas for processing facilities located outside the northwestern private timber open market area—** The [Secretaries](/usc/16/410r–5.md?p=c-1) concerned shall, not later than 3 months after August 20, 1990, prescribe procedures to be used by a [person](/usc/16/450rr–1.md?p=b) applying for approval of a sourcing [area](/usc/16/539m–1.md?p=1-A) under [paragraph (1)](#c-1). Such procedures shall require, at a minimum, the applicant to provide—
    - (A) information regarding the location of [private lands](/usc/16/620e.md?p=6) (except private land located in the [northwestern private timber open market area](/usc/16/620e.md?p=4)) from which such [person](/usc/16/450rr–1.md?p=b) has, within the previous year, harvested or otherwise acquired [unprocessed timber](/usc/16/620e.md?p=9-A) which has been exported from the United States; and
    - (B) information regarding the location of each timber manufacturing facility owned or operated by such [person](/usc/16/450rr–1.md?p=b) within the proposed sourcing [area](/usc/16/539m–1.md?p=1-A) boundaries at which the applicant proposes to process timber originating from [Federal lands](/usc/16/620e.md?p=2).

    The prohibition contained in [subsection (a)](#a) shall not apply to a [person](/usc/16/450rr–1.md?p=b) before the date which is 1 month after the procedures referred to in this paragraph are prescribed. With respect to any [person](/usc/16/450rr–1.md?p=b) who submits an application in accordance with such procedures by the end of the time period set forth in the preceding sentence, the prohibition contained in [subsection (a)](#a) shall not apply to such [person](/usc/16/450rr–1.md?p=b) before the date on which the [Secretary concerned](/usc/16/620e.md?p=8) approves or disapproves such application.

  - (3) **Grant of approval for sourcing areas for processing facilities located outside of the northwestern private timber open market area—**
    - (A) **In general—** For each applicant, the [Secretary concerned](/usc/16/620e.md?p=8) shall, on the record and after an opportunity for a hearing, not later than 4 months after receipt of the application for a sourcing [area](/usc/16/539m–1.md?p=1-A), either approve or disapprove the application. The [Secretary concerned](/usc/16/620e.md?p=8) may approve such application only if the [Secretary](/usc/16/410r–5.md?p=c-1) determines that the [area](/usc/16/539m–1.md?p=1-A) that is the subject of the application, in which the timber manufacturing facilities at which the applicant desires to process timber originating from [Federal lands](/usc/16/620e.md?p=2) are located, is geographically and economically separate from any geographic [area](/usc/16/539m–1.md?p=1-A) from which that [person](/usc/16/450rr–1.md?p=b) harvests for export any [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6).
    - (B) **For timber manufacturing facilities located in Idaho—** Except as provided in [subparagraph (D)](#c-3-D), in making a determination referred to in [subparagraph (A)](#c-3-A), the [Secretary concerned](/usc/16/620e.md?p=8) shall consider the private timber export and the private and Federal timber sourcing patterns for the applicant’s timber manufacturing facilities, as well as the private and Federal timber sourcing patterns for the timber manufacturing facilities of other [persons](/usc/16/450rr–1.md?p=b) in the same local vicinity of the applicant, and the relative similarity of such private and Federal timber sourcing patterns.
    - (C) **For timber manufacturing facilities located in States other than Idaho—** Except as provided in [subparagraph (D)](#c-3-D), in making the determination referred to in [subparagraph (A)](#c-3-A), the [Secretary concerned](/usc/16/620e.md?p=8) shall consider the private timber export and the Federal timber sourcing patterns for the applicant’s timber manufacturing facilities, as well as the Federal timber sourcing patterns for the timber manufacturing facilities of other [persons](/usc/16/450rr–1.md?p=b) in the same local vicinity of the applicant, and the relative similarity of such Federal timber sourcing patterns. Private timber sourcing patterns shall not be a factor in such determinations in [States](/usc/16/544.md?p=r) other than Idaho.
    - (D) **Area not included—** In deciding whether to approve or disapprove an application, the [Secretary](/usc/16/410r–5.md?p=c-1) shall not—
      - (i) consider land located in the [northwestern private timber open market area](/usc/16/620e.md?p=4); or
      - (ii) condition approval of the application on the inclusion of any such land in the applicant’s sourcing [area](/usc/16/539m–1.md?p=1-A), such land being includable in the sourcing [area](/usc/16/539m–1.md?p=1-A) only to the extent requested by the applicant.
  - (4) **Denial of application for sourcing areas for processing facilities located outside the northwestern private timber open market area—**
    - (A) Subject to [subparagraph (B)](#c-4-B), and notwithstanding any other provision of law, in the 9-month period after receiving disapproval of an application submitted pursuant to this subsection, the applicant may purchase [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) in the [area](/usc/16/539m–1.md?p=1-A) which is the subject of the application in an amount not to exceed 75 percent of the annual average of such [person](/usc/16/450rr–1.md?p=b)’s purchases of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) in the same [area](/usc/16/539m–1.md?p=1-A) during the 5 full fiscal years immediately prior to submission of the application. In the subsequent 6-month period, such [person](/usc/16/450rr–1.md?p=b) may purchase not more than 25 percent of such annual average, after which time the prohibitions contained in [subsection (a)](#a) shall fully apply.
    - (B) If a [person](/usc/16/450rr–1.md?p=b) referred to in [subparagraph (A)](#c-4-A) certifies to the [Secretary concerned](/usc/16/620e.md?p=8), within 90 days after receiving disapproval of such application, that such [person](/usc/16/450rr–1.md?p=b) shall, within 15 months after such disapproval, cease the export of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6) from the geographic [area](/usc/16/539m–1.md?p=1-A) determined by the [Secretary](/usc/16/410r–5.md?p=c-1) for which the application would have been approved, such [person](/usc/16/450rr–1.md?p=b) may continue to purchase [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) in the [area](/usc/16/539m–1.md?p=1-A) which is the subject of the application, without being subject to the restrictions of [subparagraph (A)](#c-4-A), except that such purchases during that 15-month period may not exceed 125 percent of the annual average of such [person](/usc/16/450rr–1.md?p=b)’s purchases of [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [Federal lands](/usc/16/620e.md?p=2) in the same [area](/usc/16/539m–1.md?p=1-A) during the 5 full fiscal years immediately prior to submission of the application which was denied.
    - (C) Any [person](/usc/16/450rr–1.md?p=b) to whom [subparagraph (B)](#c-4-B) applies may not, during the 15-month period after the [person](/usc/16/450rr–1.md?p=b)’s application for sourcing [area](/usc/16/539m–1.md?p=1-A) boundaries is denied, export [unprocessed timber](/usc/16/620e.md?p=9-A) originating from [private lands](/usc/16/620e.md?p=6) in the geographic [area](/usc/16/539m–1.md?p=1-A) determined by the [Secretary concerned](/usc/16/620e.md?p=8) for which the application would have been approved in amounts that exceed 125 percent of the annual average of such [person](/usc/16/450rr–1.md?p=b)’s exports of [unprocessed timber](/usc/16/620e.md?p=9-A) from such [private lands](/usc/16/620e.md?p=6) during the 5 full fiscal years immediately prior to submission of the application.
  - (5) **Review of determinations for sourcing areas for processing facilities located outside the northwestern private timber open market area—** Determinations made under [paragraph (3)](#c-3) shall be reviewed, in accordance with the procedures prescribed in sections [620](/usc/16/620.md) to [620j](/usc/16/620j.md) of this title, not less often than every 5 years.
  - (6) **Sourcing areas for processing facilities located in the northwestern private timber open market area—**
    - (A) **Establishment—** In the [northwestern private timber open market area](/usc/16/620e.md?p=4)—
      - (i) a sourcing [area](/usc/16/539m–1.md?p=1-A) boundary shall be a circle around the processing facility of the sourcing [area](/usc/16/539m–1.md?p=1-A) applicant or holder;
      - (ii) the radius of the circle—
        - (I) shall be the furthest distance that the sourcing [area](/usc/16/539m–1.md?p=1-A) applicant or holder proposes to haul Federal timber for processing at the processing facility; and
        - (II) shall be determined solely by the sourcing [area](/usc/16/539m–1.md?p=1-A) applicant or holder;
      - (iii) a sourcing [area](/usc/16/539m–1.md?p=1-A) shall become effective on written notice to the Regional Forester for Region 6 of the Forest Service of the location of the boundary of the sourcing [area](/usc/16/539m–1.md?p=1-A);
      - (iv) the 24-month requirement in [paragraph (1)(A)](#c-1-A) shall not apply;
      - (v) a sourcing [area](/usc/16/539m–1.md?p=1-A) holder—
        - (I) may adjust the radius of the sourcing [area](/usc/16/539m–1.md?p=1-A) not more frequently than once every 24 months; and
        - (II) shall provide written notice to the Regional Forester for Region 6 of the adjusted boundary of its sourcing [area](/usc/16/539m–1.md?p=1-A) before using the adjusted sourcing [area](/usc/16/539m–1.md?p=1-A); and
      - (vi) a sourcing [area](/usc/16/539m–1.md?p=1-A) holder that relinquishes a sourcing [area](/usc/16/539m–1.md?p=1-A) may not reestablish a sourcing [area](/usc/16/539m–1.md?p=1-A) for that processing facility before the date that is 24 months after the date on which the sourcing [area](/usc/16/539m–1.md?p=1-A) was relinquished.
    - (B) **Transition—** With respect to a portion of a sourcing [area](/usc/16/539m–1.md?p=1-A) established before November 14, 1997, that contains Federal timber under contract before November 14, 1997, and is outside the boundary of a new sourcing [area](/usc/16/539m–1.md?p=1-A) established under [subparagraph (A)](#c-6-A)—
      - (i) that portion shall continue to be a sourcing [area](/usc/16/539m–1.md?p=1-A) only until unprocessed Federal timber from the portion is no longer in the possession of the sourcing [area](/usc/16/539m–1.md?p=1-A) holder; and
      - (ii) [unprocessed timber](/usc/16/620e.md?p=9-A) from private land in that portion shall be exportable immediately after [unprocessed timber](/usc/16/620e.md?p=9-A) from [Federal land](/usc/16/3102.md?p=2) in the portion is no longer in the possession of the sourcing [area](/usc/16/539m–1.md?p=1-A) holder.
  - (7) **Relinquishment and termination of sourcing areas—**
    - (A) **In general—** A sourcing [area](/usc/16/539m–1.md?p=1-A) may be relinquished at any time.
    - (B) **Effective date—** A relinquishment of a sourcing [area](/usc/16/539m–1.md?p=1-A) shall be effective as of the date on which written notice is provided by the sourcing [area](/usc/16/539m–1.md?p=1-A) holder to the Regional Forester with jurisdiction over the sourcing [area](/usc/16/539m–1.md?p=1-A) where the processing facility of the holder is located.
    - (C) **Exportability—**
      - (i) **In general—** On relinquishment or termination of a sourcing [area](/usc/16/539m–1.md?p=1-A), [unprocessed timber](/usc/16/620e.md?p=9-A) from private land within the former boundary of the relinquished or terminated sourcing [area](/usc/16/539m–1.md?p=1-A) is exportable immediately after [unprocessed timber](/usc/16/620e.md?p=9-A) from [Federal land](/usc/16/3102.md?p=2) from within that [area](/usc/16/539m–1.md?p=1-A) is no longer in the possession of the former sourcing [area](/usc/16/539m–1.md?p=1-A) holder.
      - (ii) **No restriction—** The exportability of [unprocessed timber](/usc/16/620e.md?p=9-A) from private land located outside of a sourcing [area](/usc/16/539m–1.md?p=1-A) shall not be restricted or in any way affected by relinquishment or termination of a sourcing [area](/usc/16/539m–1.md?p=1-A).
- (d) **Domestic transportation and processing of private timber—** Nothing in this section restricts or authorizes any restriction on the domestic transportation or processing of timber harvested from private land, except that the [Secretary](/usc/16/410r–5.md?p=c-1) may prohibit processing facilities located in the [State](/usc/16/590q.md?p=a) of Idaho that have sourcing [areas](/usc/16/539m–1.md?p=1-A) from processing timber harvested from private land outside of the boundaries of those sourcing [areas](/usc/16/539m–1.md?p=1-A).

## Source credit

(Pub. L. 101–382, title IV, § 490, Aug. 20, 1990, 104 Stat. 715; Pub. L. 105–83, title VI, § 602(a), Nov. 14, 1997, 111 Stat. 1618.)

## Notes

### Editorial Notes

### References in Text

August 20, 1990, referred to in subsec. (a)(2)(B), was in the original “the effective date of this title”, which is the date of enactment of title IV of Pub. L. 101–382, approved Aug. 20, 1990, except as otherwise provided in sections 620 to 620j of this title, see section 494 of Pub. L. 101–382, set out as an Effective Date note under section 620 of this title.

### Amendments

1997—Subsec. (a)(1). Pub. L. 105–83, § 602(a)(1)(A), inserted “paragraph (3) and” after “Except as provided in”.

Subsec. (a)(3). Pub. L. 105–83, § 602(a)(1)(B), added par. (3).

Subsec. (c). Pub. L. 105–83, § 602(a)(2)(A), struck out “Approval of” before “Sourcing areas” in heading.

Subsec. (c)(2). Pub. L. 105–83, § 602(a)(2)(B)(i), inserted “for sourcing areas for processing facilities located outside the northwestern private timber open market area” after “application” in heading.

Subsec. (c)(2)(A). Pub. L. 105–83, § 602(a)(2)(B)(ii), inserted “(except private land located in the northwestern private timber open market area)” after “private lands”.

Subsec. (c)(3). Pub. L. 105–83, § 602(a)(2)(C), inserted “for sourcing areas for processing facilities located outside of the northwestern private timber open market area” in heading, designated existing provisions as subpar. (A), inserted heading, and struck out at end “In making a determination referred to in this paragraph, the Secretary concerned shall consider equally the timber purchasing patterns, on private and Federal lands, of the applicant as well as other persons in the same local vicinity as the applicant, and the relative similarity of such purchasing patterns.”, and added subpars. (B) to (D).

Subsec. (c)(4), (5). Pub. L. 105–83, § 602(a)(2)(D), (E), inserted “for sourcing areas for processing facilities located outside the northwestern private timber open market area” in headings.

Subsec. (c)(6), (7). Pub. L. 105–83, § 602(a)(2)(F), added pars. (6) and (7).

Subsec. (d). Pub. L. 105–83, § 602(a)(3), added subsec. (d).