Notice2025-02293
Implementation of Additional Duties on Products of the People's Republic of China Pursuant to the President's February 1, 2025 Executive Order Imposing Duties To Address the Synthetic Opioid Supply Chain in the People's Republic of China
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Published
February 5, 2025
Effective
February 4, 2025
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
In order to effectuate the President's February 1, 2025 Executive Order "Imposing Duties to Address the Synthetic Opioid Supply Chain in the People's Republic of China," which imposes specified rates of duty on imports of articles that are products of the People's Republic of China (PRC or China), the Secretary of Homeland Security has determined that appropriate action is needed to modify the Harmonized Tariff Schedule of the United States (HTSUS) as set out in the annex to this notice.
Full Text
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<title>Federal Register, Volume 90 Issue 23 (Wednesday, February 5, 2025)</title>
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[Federal Register Volume 90, Number 23 (Wednesday, February 5, 2025)]
[Notices]
[Pages 9038-9040]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-02293]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Implementation of Additional Duties on Products of the People's
Republic of China Pursuant to the President's February 1, 2025
Executive Order Imposing Duties To Address the Synthetic Opioid Supply
Chain in the People's Republic of China
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice.
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SUMMARY: In order to effectuate the President's February 1, 2025
Executive Order ``Imposing Duties to Address the Synthetic Opioid
Supply Chain in the People's Republic of China,'' which imposes
specified rates of duty on imports of articles that are products of the
People's Republic of China (PRC or China), the Secretary of Homeland
Security has determined that appropriate action is needed to modify the
Harmonized Tariff Schedule of the United States (HTSUS) as set out in
the annex to this notice.
DATES: The duties set out in the annex to this document are effective
with respect to products of the PRC that are entered for consumption,
or withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern standard time on February 4, 2025.
FOR FURTHER INFORMATION CONTACT: Brandon Lord, Executive Director,
Trade Policy and Programs, Office of Trade, U.S. Customs and Border
Protection, (202) 325-6432 or by email at <a href="/cdn-cgi/l/email-protection#13676172777661767e76776a537071633d777b603d747c65"><span class="__cf_email__" data-cfemail="5b2f293a3f3e293e363e3f221b38392b753f3328753c342d">[email protected]</span></a>.
Susan Thomas, Executive Director, Cargo and Conveyance Security, Office
of Field Operations, U.S. Customs and Border Protection, (202) 344-3401
or by email at <a href="/cdn-cgi/l/email-protection#92e6e0f3f6f7e0f7fff7f6ebd2f1f0e2bcf6fae1bcf5fde4"><span class="__cf_email__" data-cfemail="097d7b686d6c7b6c646c6d70496a6b79276d617a276e667f">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On January 20, 2025, the President declared
a national emergency with respect to the grave threat to the United
States posed by the influx of illegal aliens and drugs into the United
States in Proclamation 10886 (Declaring a National Emergency at the
Southern Border). See National Emergencies Act (50 U.S.C. 1601 et seq.)
(NEA).
On February 1, 2025, the President expanded the scope of the
national emergency declared in that proclamation to cover the failure
of the People's Republic of China (PRC or China) government to arrest,
seize, detain, or otherwise intercept, chemical precursor suppliers,
money launderers, other transnational criminal organizations, criminals
at large, and drugs. In addition, the President determined that this
failure to act on the part of the PRC constitutes an unusual and
extraordinary threat, which has its source in substantial part outside
the United States, to the national security, foreign policy, and
economy of the United States.
To address this threat, pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the NEA, section
604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and 3 U.S.C.
301, the President imposed ad valorem tariffs on all imports that are
products of the PRC, excluding those encompassed by 50 U.S.C. 1702(b).
Specifically, the February 1, 2025 Executive Order adjusted duties on
imported products of the PRC, by imposing, consistent with law, an
additional 10 percent ad valorem rate of duty as described in the annex
to this notice.
The Executive Order directed the Secretary of Homeland Security, to
determine and implement the necessary modifications to the Harmonized
Tariff Schedule of the United States (HTSUS), consistent with law, in
order to effectuate the Executive Order.
In order to implement the rates of duty imposed by the Executive
Order, effective on 12:01 a.m. eastern standard time on February 4,
2025, subchapter III of chapter 99 of the HTSUS is modified by the
annex to this notice.
Articles that are the products of China, which hereinafter will
include products of Hong Kong in accordance with Executive Order 13936
on Hong Kong Normalization (See 85 FR 43413 (July 17, 2020)), excluding
those encompassed by 50 U.S.C. 1702(b), that are entered for
consumption, or withdrawn from warehouse for consumption, on or after
12:01 a.m. eastern standard time on February 4, 2025, will be subject
to the additional ad valorem rate of duty provided for in new HTSUS
heading 9903.01.20, except that goods entered for consumption, or
withdrawn from warehouse for consumption, after 12:01 a.m. eastern
standard time on February 4, 2025, that were loaded onto a vessel at
the port of loading, or in transit on the final mode of transport prior
to entry into the United States, before 12:01 a.m. eastern time on
February 1, 2025, shall not be subject to such additional duty only if
the importer certifies to CBP that the goods so qualify by declaring
new HTSUS heading 9903.01.23 as described in the annex to this notice.
The exception for goods that were in transit before February 1, 2025 is
time limited, to prevent importers from abusing this provision when it
is no longer realistic due to the passage of time, as provided in new
HTSUS heading 9903.01.23 that is described the annex to this notice,
and will only apply to goods entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m. eastern standard time
on February 4, 2025, and before 12:01 a.m. eastern standard time on
March 7, 2025.
Imported products of China that are encompassed by 50 U.S.C.
1702(b) will not be subject to the additional ad valorem duty provided
for in new HTSUS heading 9903.01.20, but such qualifying products,
other than products for personal use included in accompanied baggage of
persons arriving in the United States, must be declared and entered
under new HTSUS heading 9903.01.21 or new HTSUS heading 9903.01.22.
Specifically, new HTSUS heading 9903.01.21 covers products encompassed
by 50 U.S.C. 1702(b)(2) and new HTSUS heading 9903.01.22 covers
products encompassed by 50 U.S.C. 1702(b)(3).\1\
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\1\ 50 U.S.C. 1702(b)(1) covers ``postal, telegraphic,
telephonic, or other personal communication[s], which do[ ] not
involve a transfer of anything of value,'' and hence does not
encompass any imported articles of merchandise. 50 U.S.C. 1702(b)(4)
covers ``transactions ordinarily incident to travel to or from any
country, including [1] importation of accompanied baggage for
personal use, [2] maintenance within any country including payment
of living expenses and acquisition of goods or services for personal
use, and [3] arrangement or facilitation of such travel including
nonscheduled air, sea, or land voyages,'' only the first of which
encompasses imported articles of merchandise.
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[[Page 9039]]
The additional ad valorem duty provided for in new HTSUS heading
9903.01.20 applies in addition to all other applicable duties, taxes,
fees, exactions, and charges. Further, the February 1, 2025 Executive
Order clarifies that duty-free de minimis treatment under 19 U.S.C.
1321 shall not be available for the articles of China subject to the
additional 10 percent ad valorem rate of duty. Accordingly, articles
covered by heading 9903.01.20 shall not be eligible for the
administrative exemption from duty and certain taxes at 19 U.S.C.
1321(a)(2)(C)--the so-called ``de minimis'' exemption.
In order to protect the revenue of the United States and
effectively carry out the Executive Order's instruction to exclude such
articles from eligibility for the de minimis exemption, including with
respect to shipments arriving by international mail from China, CBP has
determined that, in accordance with 19 CFR 145.12(a)(1), it is
necessary to require formal entry for all mail shipments from China.
Without regard to their value, no mail shipments from China will be
cleared or released by CBP unless and until formal entry is properly
filed.
Products of China that are eligible for temporary duty exemptions
or reductions under subchapter II to chapter 99 shall be subject to the
additional ad valorem rate of duty imposed by heading 9903.01.20.
The additional duties imposed by heading 9903.01.20 shall not apply
to goods for which entry is properly claimed under a provision of
chapter 98 of the tariff schedule pursuant to applicable regulations of
U.S. Customs and Border Protection (``CBP''), and whenever CBP agrees
that entry under such a provision is appropriate, except for goods
entered under heading 9802.00.80; and subheadings 9802.00.40,
9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and
9802.00.60, the additional duties apply to the value of repairs,
alterations, or processing performed (in the PRC), as described in the
applicable subheading. For heading 9802.00.80, the additional duties
apply to the value of the article assembled abroad (in the PRC), less
the cost or value of such products of the United States, as described.
Articles that are products of the PRC, excluding those encompassed
by 50 U.S.C. 1702(b), except those that are eligible for admission to a
foreign trade zone under ``domestic status'' as defined in 19 CFR
146.43, and are admitted into a United States foreign trade zone on or
after 12:01 a.m. eastern standard time on February 4, 2025, must be
admitted as ``privileged foreign status'' as defined in 19 CFR 146.41.
Such articles will be subject, upon entry for consumption, to the
duties imposed by the Executive Order and the rates of duty related to
the classification under the applicable HTSUS subheading in effect at
the time of admission into the United States foreign trade zone.
No drawback shall be available with respect to the additional
duties imposed pursuant to the Executive Order.
Kristi Noem,
Secretary.
Annex
To Modify Chapter 99 of the Harmonized Tariff Schedule of the United
States
Effective with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern standard time on February 4, 2025, subchapter III of chapter
99 of the Harmonized Tariff Schedule of the United States (HTSUS) is
modified:
1. by inserting the following new heading 9903.01.20 in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', ``Rates of Duty 1--General'', ``Rates of Duty 1--
Special'' and ``Rates of Duty 2'', respectively:
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Rates of duty
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Heading/ subheading Article description 1
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General Special
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``9903.01.20........................ Except for products described in The duty provided in The duty provided in No change''.
headings 9903.01.21, 9903.01.22, or the applicable the applicable
9903.01.23 articles the product of subheading + 10%. subheading + 10%.
China and Hong Kong, as provided for
in U.S. note 2(s) to this subchapter.
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2. by inserting the following new heading 9903.01.21 in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', ``Rates of Duty 1--General'', ``Rates of Duty 1--
Special'' and ``Rates of Duty 2'', respectively:
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Rates of duty
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Heading/ subheading Article description 1
------------------------------------------------- 2
General Special
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``9903.01.21........................ Articles the product of China and Hong The duty provided in The duty provided in No change''.
Kong that are donations, by persons the applicable the applicable
subject to the jurisdiction of the subheading. subheading.
United States, of articles, such as
food, clothing, and medicine,
intended to be used to relieve human
suffering, as provided for in U.S.
note 2(t) to this subchapter.
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3. by inserting the following new heading 9903.01.22 in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', ``Rates of Duty 1--General'', ``Rates of Duty 1--
Special'' and ``Rates of Duty 2'', respectively:
[[Page 9040]]
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Rates of duty
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Heading/ subheading Article description 1
------------------------------------------------- 2
General Special
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``9903.01.22........................ Articles the product of China and Hong The duty provided in The duty provided in No change''.
Kong that are informational the applicable the applicable
materials, including but not limited subheading. subheading.
to, publications, films, posters,
phonograph records, photographs,
microfilms, microfiche, tapes,
compact disks, CD ROMs, artworks, and
news wire feeds.
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4. by inserting the following new heading 9903.01.23 in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', ``Rates of Duty 1--General'', ``Rates of Duty 1--
Special'' and ``Rates of Duty 2'', respectively:
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Rates of duty
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Heading/ subheading Article description 1
------------------------------------------------- 2
General Special
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``9903.01.23........................ Except for products described in The duty provided in The duty provided in No change''.
headings 9903.01.21 and 9903.01.22, the applicable the applicable
and other than products for personal subheading. subheading.
use included in accompanied baggage
of persons arriving in the United
States, articles the product of China
and Hong Kong that: (1) were loaded
onto a vessel at the port of loading,
or in transit on the final mode of
transport prior to entry into the
United States, before 12:01 a.m.
eastern standard time on February 1,
2025; and (2) are entered for
consumption, or withdrawn from
warehouse for consumption, on or
after 12:01 a.m. eastern standard
time on February 4, 2025, and before
12:01 a.m. eastern standard time on
March 7, 2025.
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5. by inserting the following new U.S. note 2(s) to subchapter
III of chapter 99 of the HTSUS in numerical sequence:
``2. (s) For the purposes of heading 9903.01.20, products of
China and Hong Kong, other than products described in heading
9903.01.21, heading 9903.01.22, heading 9903.01.23, and other than
products for personal use included in accompanied baggage of persons
arriving in the United States, shall be subject to an additional 10%
ad valorem rate of duty. Notwithstanding U.S. note 1 to this
subchapter, all products of China and Hong Kong that are subject to
the additional ad valorem rate of duty imposed by heading 9903.01.20
shall also be subject to the general rates of duty imposed on
products of China and Hong Kong entered under subheadings in
chapters 1 to 97 of the tariff schedule. Products of China and Hong
Kong that are eligible for temporary duty exemptions or reductions
under subchapter II to chapter 99 shall be subject to the additional
ad valorem rate of duty imposed by heading 9903.01.20.
The additional duties imposed by heading 9903.01.20 shall not
apply to goods for which entry is properly claimed under a provision
of chapter 98 of the tariff schedule pursuant to applicable
regulations of U.S. Customs and Border Protection (``CBP''), and
whenever CBP agrees that entry under such a provision is
appropriate, except for goods entered under heading 9802.00.80; and
subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings
9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply
to the value of repairs, alterations, or processing performed (in
China and Hong Kong), as described in the applicable subheading. For
heading 9802.00.80, the additional duties apply to the value of the
article assembled abroad (in China and Hong Kong), less the cost or
value of such products of the United States, as described.
Products of China and Hong Kong that are provided for in heading
9903.01.20 shall continue to be subject to antidumping,
countervailing, or other duties, taxes, fees, exactions and charges
that apply to such products, as well as to the additional ad valorem
rate of duty imposed by heading 9903.01.20.
Products of China and Hong Kong that are provided for in heading
9903.01.20 shall not be eligible for the administrative exemption
from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)--the so-
called ``de minimis'' exemption.
(t) Heading 9903.01.21 covers only products of China and Hong
Kong, that are donations, by persons subject to the jurisdiction of
the United States, of articles, such as food, clothing, and
medicine, intended to be used to relieve human suffering, except to
the extent that the President determines that such donations (A)
would seriously impair his ability to deal with any national
emergency declared under section 1701 of title 19 of the U.S. Code,
(B) are in response to coercion against the proposed recipient or
donor, or (C) would endanger Armed Forces of the United States which
are engaged in hostilities or are in a situation where imminent
involvement in hostilities is clearly indicated by the
circumstances.''
[FR Doc. 2025-02293 Filed 2-3-25; 1:15 pm]
BILLING CODE 9111-14-P
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