Notice2025-03664
Notice of Implementation of Additional Duties on Products of Canada Pursuant to the President's Executive Order 14193, Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 6, 2025
Effective
March 4, 2025
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
In order to effectuate the President's Executive Order 14193, "Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border," as amended by Executive Order 14197, "Progress on the Situation at Our Northern Border", and subsequently amended by the President's March 2, 2025 Executive Order "Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border", which imposed specified rates of duty on imports of articles that are products of Canada, 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
<html>
<head>
<title>Federal Register, Volume 90 Issue 43 (Thursday, March 6, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 43 (Thursday, March 6, 2025)]
[Notices]
[Pages 11423-11426]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03664]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Implementation of Additional Duties on Products of
Canada Pursuant to the President's Executive Order 14193, Imposing
Duties To Address the Flow of Illicit Drugs Across Our Northern Border
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In order to effectuate the President's Executive Order 14193,
``Imposing Duties to Address the Flow of Illicit Drugs Across Our
Northern Border,'' as amended by Executive Order 14197, ``Progress on
the Situation at Our Northern Border'', and subsequently amended by the
President's March 2, 2025 Executive Order ``Amendment to Duties to
Address the Flow of Illicit Drugs Across Our Northern Border'', which
imposed specified rates of duty on imports of articles that are
products of Canada, 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 Canada that are entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern standard time on March 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#cbbfb9aaafaeb9aea6aeafb28ba8a9bbe5afa3b8e5aca4bd"><span class="__cf_email__" data-cfemail="88fcfae9ecedfaede5edecf1c8ebeaf8a6ece0fba6efe7fe">[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#582c2a393c3d2a3d353d3c21183b3a28763c302b763f372e"><span class="__cf_email__" data-cfemail="3a4e485b5e5f485f575f5e437a59584a145e5249145d554c">[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 threat to
safety and security of Americans,
[[Page 11424]]
including the public health crisis of deaths due to the use of fentanyl
and other illicit drugs and the failure of Canada to do more to arrest,
seize, detain, or otherwise intercept drug trafficking organizations,
other drug and human traffickers, criminals at large, and drugs. In
addition, the President determined that this failure to act on the part
of Canada constitutes an unusual and extraordinary threat, which has
its source in substantial part outside the United States, to the
national security and foreign policy of the United States. See
Executive Order 14193 (90 FR 9113), dated February 1, 2025.
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 Canada, excluding those encompassed by 50 U.S.C. 1702(b).
Specifically, the February 1, 2025 Executive Order adjusted duties on
imported products of Canada, except for imports of energy and energy
resources that are products of Canada, by imposing, consistent with
law, an additional 25 percent ad valorem rate of duty as described in
the Annex to this notice. With respect to imports of energy and energy
resources that are products of Canada, as described in the Annex to
this notice, the Executive Order imposed, consistent with law, an
additional 10 percent ad valorem rate of duty.
On February 3, 2025, the President issued Executive Order 14197,
``Progress on the Situation at our Northern Border'' (90 FR 9183),
which amended Executive Order 14193 by pausing the implementation of
the additional duties for 30 days until March 4, 2025, to allow time to
assess whether actions taken by Canada as of that date were sufficient
to alleviate the crisis and resolve the unusual and extraordinary
threat beyond our southern border. Additionally, Executive Order 14197
withdrew the exceptions in section 2(a) of Executive Order 14193
related to covered goods loaded onto a vessel at a port of entry or in
transit on the final mode of transport prior to entry into the United
States.
Subsequently, on March 2, 2025, the President amended subsection
(h) of section 2 of Executive Order 14193, to modify the application of
19 U.S.C. 1321 to goods covered by subsection (a) and subsection (b) of
section 2 of Executive Order 14193. See Executive Order ``Amendment to
Duties to Address the Flow of Illicit Drugs Across Our Northern
Border'' (March 2, 2025). Specifically, as amended, section 2(h) of
Executive Order 14193 provides that duty-free de minimis treatment
under 19 U.S.C. 1321 is available for otherwise eligible covered
articles described in the Executive Order, but shall cease to be
available for such articles upon notification by the Secretary of
Commerce to the President that adequate systems are in place to fully
and expediently process and collect tariff revenue applicable pursuant
to subsection (a) and subsection (b) of section 2 of the Executive
Order for covered articles otherwise eligible for de minimis treatment.
Executive Order 14193 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, as amended by
Executive Order 14197.
In order to implement the rates of duty imposed by the Executive
Order, as amended, effective on 12:01 a.m. eastern standard time on
March 4, 2025, subchapter III of chapter 99 of the HTSUS is modified by
the Annex to this notice.
Articles that are products of Canada, 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 March 4, 2025, will be subject to the additional ad valorem
rate of duty provided for in new HTSUS headings 9903.01.10 or
9903.01.13.
Imported products of Canada that are encompassed by 50 U.S.C.
1702(b) will not be subject to the additional ad valorem duty rates
provided for in new HTSUS headings 9903.01.10 or 9903.01.13, 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 9903.01.11 or new HTSUS
heading 9903.01.12, as applicable. Specifically, new HTSUS heading
9903.01.11 covers products encompassed by 50 U.S.C. 1702(b)(2) and new
HTSUS heading 9903.01.12 covers products encompassed by 50 U.S.C.
1702(b)(3).\1\
---------------------------------------------------------------------------
\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 the
three categories of exceptions covered by 50 U.S.C. 1702(b)(4)--
products for personal use included in accompanied baggage of persons
arriving in the United States--encompasses imported articles of
merchandise, and such articles are excluded from the scope of the
additional ad valorem duties provided for in new HTSUS headings
9903.01.10 and 9903.01.13 by the terms of those headings and new
U.S. note 2(j).
---------------------------------------------------------------------------
The additional ad valorem duty provided for in new HTSUS headings
9903.01.10 and 9903.01.13 applies in addition to all other applicable
duties, taxes, fees, exactions, and charges.
Further, pursuant to the March 2, 2025 Executive Order, the
administrative exemption from duty and certain taxes at 19 U.S.C.
1321(a)(2)(C)--known as the ``de minimis'' exemption--continues to be
available for articles covered by headings 9903.01.10 and 9903.01.13
that are otherwise eligible for the exemption, including for eligible
articles sent to the United States through the international postal
network, but shall cease to be available for such articles upon
notification by the Secretary of Commerce to the President that
adequate systems are in place to fully and expediently process and
collect tariff revenue applicable to articles covered by headings
9903.01.10 and 9903.01.13 otherwise eligible for the ``de minimis''
exemption. Accordingly, articles that are the product of Canada that
are eligible for the de minimis exemption and are covered by headings
9903.01.10 and 9903.01.13 may continue to request duty free de minimis
treatment until such time as the Secretary of Commerce, in consultation
with the Secretary of the Treasury, so notifies the President and
further guidance is provided.
The additional ad valorem duty provided for in new HTSUS headings
9903.01.10 and 9903.01.13 also applies to products of Canada that are
eligible for special tariff treatment under general note 3(c)(i) to the
HTSUS, and that are eligible for temporary duty exemptions or
reductions under subchapter II to chapter 99. The Annex to this notice
includes instruction on the application of the additional duties to
goods entered under certain provisions of chapters 98 and 99 of the
HTSUS, along with the application of the additional duties to goods
qualifying for special tariff treatment under the United States-Mexico-
Canada Agreement (USMCA).
The additional duties imposed by headings 9903.01.10 and 9903.01.13
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
[[Page 11425]]
U.S. Customs and Border Protection (``CBP''), and whenever CBP agrees
that entry under such a provision is appropriate, except for goods
entered under subheading 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 Canada), as described in the
applicable subheading. For heading 9802.00.80, the additional duties
apply to the value of the article assembled abroad (in Canada), less
the cost or value of such products of the United States, as described.
The Annex to this notice also provides that products of Canada
include both goods of Canada under the rules set forth in part 102,
Title 19 of the Code of Federal Regulations, as applicable, as well as
goods for which Canada was the last country of substantial
transformation prior to importation into the United States.
Articles that are products of Canada, 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. a.m. eastern standard time on March 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, as amended, and the rates of
duty related to the classification under the applicable HTSUS heading
or 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 Orders.
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 March 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 9903.01.10 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:
----------------------------------------------------------------------------------------------------------------
Rates of duty
-----------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------- 2
General Special
----------------------------------------------------------------------------------------------------------------
``9903.01.10............... Except for products The duty provided The duty provided No change''.
described in headings in the applicable in the applicable
9903.01.11, 9903.01.12 subheading + 25%. subheading + 25%.
or, 9903.01.13,
articles the product
of Canada, as provided
for in U.S. note 2(j)
to this subchapter.
----------------------------------------------------------------------------------------------------------------
2. by inserting the following new heading 9903.01.11 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:
----------------------------------------------------------------------------------------------------------------
Rates of duty
-----------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------- 2
General Special
----------------------------------------------------------------------------------------------------------------
``9903.01.11............... Articles the product of The duty provided The duty provided No change''.
Canada that are in the applicable in the applicable
donations, by persons subheading. subheading.
subject to the
jurisdiction of the
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(k) to this
subchapter.
----------------------------------------------------------------------------------------------------------------
3. by inserting the following new heading 9903.01.12 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:
----------------------------------------------------------------------------------------------------------------
Rates of duty
-----------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------- 2
General Special
----------------------------------------------------------------------------------------------------------------
``9903.01.12............... Articles the product of The duty provided The duty provided No change''.
Canada that are in the applicable in the applicable
informational subheading. subheading.
materials, including
but not limited to,
publications, films,
posters, phonograph
records, photographs,
microfilms,
microfiche, tapes,
compact disks, CD
ROMs, artworks, and
news wire feeds.
----------------------------------------------------------------------------------------------------------------
4. by inserting the following new heading 9903.01.13 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 11426]]
----------------------------------------------------------------------------------------------------------------
Rates of duty
-----------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------- 2
General Special
----------------------------------------------------------------------------------------------------------------
``9903.01.13............... Except for products The duty provided The duty provided No change''.
described in headings in the applicable in the applicable
9903.01.11 and subheading + 10%. subheading + 10%.
9903.01.12, and other
than products for
personal use included
in accompanied baggage
of persons arriving in
the United States,
articles the product
of Canada: Crude oil,
natural gas, lease
condensates, natural
gas liquids, refined
petroleum products,
uranium, coal,
biofuels, geothermal
heat, the kinetic
movement of flowing
water, and critical
minerals, as defined
by 30 U.S.C.
1606(a)(3)
----------------------------------------------------------------------------------------------------------------
5. by inserting the following new U.S. note 2(j) to subchapter
III of chapter 99 of the HTSUS in numerical sequence:
``2. (j) For the purposes of heading 9903.01.10, products of
Canada, other than products described in headings 9903.01.11,
9903.01.12, and 9903.11.13, and other than products for personal use
included in accompanied baggage of persons arriving in the United
States, shall be subject to an additional 25% ad valorem rate of
duty. For the purposes of heading 9903.01.13, the covered products
of Canada shall be subject to an additional 10% ad valorem rate of
duty. Notwithstanding U.S. note 1 to this subchapter, all products
of Canada that are subject to the additional ad valorem rate of duty
imposed by headings 9903.01.10 and 9903.01.13 shall also be subject
to the general rates of duty imposed on products of Canada entered
under subheadings in chapters 1 to 97 of the tariff schedule.
The additional duties imposed by headings 9903.01.10 and
9903.01.13 that apply to products of Canada include both goods of
Canada under the rules set forth in part 102, title 19 of the Code
of Federal Regulations, as applicable, as well as goods for which
Canada was the last country of substantial transformation prior to
importation into the United States.
Products of Canada that are eligible for special tariff
treatment under general note 3(c)(i) to the tariff schedule, or 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 headings 9903.01.10 and 9903.01.13.
The additional duties imposed by headings 9903.01.10 and
9903.01.13 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 Canada), as described in the applicable
subheading. For heading 9802.00.80, the additional duties apply to
the value of the article assembled abroad (in Canada), less the cost
or value of such products of the United States, as described.
Products of Canada that are provided for in headings 9903.01.10
or 9903.01.13 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 headings 9903.01.10 and 9903.01.13.
Products of Canada that are provided for in headings 9903.01.10
and 9903.01.13 and that are otherwise eligible for the
administrative exemption from duty and certain taxes at 19 U.S.C.
1321(a)(2)(C)--known as ``de minimis'' exemption--may continue to
qualify for the exemption, but the de minimis exemption shall cease
to be available for such articles upon notification by the Secretary
of Commerce, in consultation with the Secretary of the Treasury, to
the President that adequate systems are in place to fully and
expediently process and collect tariff revenue applicable for
covered articles otherwise eligible for the de minimis exemption.
(k) Heading 9903.01.11 covers only products of Canada, 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. 2025-03664 Filed 3-3-25; 4:30 pm]
BILLING CODE 9111-14-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on March 6, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.