Notice2025-03665
Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President's Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border
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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 14194, "Imposing Duties to Address the Situation At Our Southern Border," as amended by Executive Order 14198, "Progress on the Situation at Our Southern Border," and subsequently amended by the President's March 2, 2025 Executive Order "Amendment to Duties to Address the Situation At Our Southern Border," which imposed specified rates of duty on imports of articles that are products of Mexico, 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.
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<title>Federal Register, Volume 90 Issue 43 (Thursday, March 6, 2025)</title>
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[Federal Register Volume 90, Number 43 (Thursday, March 6, 2025)]
[Notices]
[Pages 11429-11431]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03665]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Implementation of Additional Duties on Products of
Mexico Pursuant to the President's Executive Order 14194, Imposing
Duties To Address the Situation at Our Southern Border
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 Executive Order 14194,
``Imposing Duties to Address the Situation At Our Southern Border,'' as
amended by Executive Order 14198, ``Progress on the Situation at Our
Southern Border,'' and subsequently amended by the President's March 2,
2025 Executive Order ``Amendment to Duties to Address the Situation At
Our Southern Border,'' which imposed specified rates of duty on imports
of articles that are products of Mexico, 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 Mexico 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#88fcfae9ecedfaede5edecf1c8ebeaf8a6ece0fba6efe7fe"><span class="__cf_email__" data-cfemail="54202635303126313931302d143736247a303c277a333b22">[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#05717764616077606860617c456667752b616d762b626a73"><span class="__cf_email__" data-cfemail="72060013161700171f17160b321110025c161a015c151d04">[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 public
health crisis of deaths due to the use of fentanyl and other illicit
drugs and the failure of Mexico 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 the Mexican
government 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.
See Executive Order 14194 (90 FR 9117), 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 Mexico, excluding those encompassed by 50 U.S.C. 1702(b).
Specifically, Executive Order 14194 adjusted duties on imported
products of Mexico, by imposing, consistent with law, an additional 25
percent ad valorem rate of duty.
On February 3, 2025, the President issued Executive Order 14198,
``Progress on the Situation at Our Southern Border'' (90 FR 9185),
which amended Executive Order 14194 by pausing the implementation of
the additional duties for 30 days until March 4, 2025, to allow time to
assess whether actions taken by Mexico as of that date were sufficient
to alleviate the crisis and resolve the unusual and extraordinary
threat beyond our southern border. Additionally, Executive Order 14198
withdrew the exceptions in section 2(a) of Executive Order 14194
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
(g) of section 2 of Executive Order 14194, to modify the application of
19 U.S.C. 1321 to goods covered by subsection (a) of section 2 of
Executive Order 14194. See Executive Order ``Amendment to Duties to
Address the Situation At Our Southern Border,'' (March 2, 2025).
Specifically, as amended, section 2(g) of Executive Order 14194
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) of section
2 of the Executive Order for covered articles otherwise eligible for de
minimis treatment.
Executive Order 14194 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 14198. 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 Mexico, 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
[[Page 11430]]
March 4, 2025, will be subject to the additional ad valorem rate of
duty provided for in new HTSUS heading 9903.01.01.
Imported products of Mexico 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 9903.01.01, 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 9903.01.02 or new HTSUS heading 9903.01.03, as
applicable. Specifically, new HTSUS heading 9903.01.02 covers products
encompassed by 50 U.S.C. 1702(b)(2) and new HTSUS heading 9903.01.03
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 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 duty provided for in new HTSUS heading
9903.01.01 by the terms of that heading and new U.S. note 2(a).
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The additional ad valorem duty provided for in new HTSUS heading
9903.01.01 applies in addition to all other applicable duties, taxes,
fees, exactions, and charges.
Further, pursuant to the March 2, 2025 Executive Order ``Amendment
to Duties to Address the Situation At Our Southern Border,'' 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 heading 9903.01.01 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 heading 9903.01.01 otherwise eligible for the ``de
minimis'' exemption. Accordingly, articles that are the product of
Mexico that are eligible for the de minimis exemption and are covered
by heading 9903.01.01 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 heading
9903.01.01 also applies to products of Mexico 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
instructions 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 heading 9903.01.01 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 Mexico), as described in the
applicable subheading. For heading 9802.00.80, the additional duties
apply to the value of the article assembled abroad (in Mexico), less
the cost or value of such products of the United States, as described.
The Annex to this notice also provides that products of Mexico
include both goods of Mexico under the rules set forth in part 102,
Title 19 of the Code of Federal Regulations, as applicable, as well as
goods for which Mexico was the last country of substantial
transformation prior to importation into the United States.
Articles that are products of Mexico, 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 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 9903.01.01 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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``9903.01.01............... Except for products The duty provided The duty provided No change.
described in heading in the applicable in the applicable
9903.01.02 and heading subheading + 25%. subheading + 25%.
9903.01.03, articles
the product of Mexico,
as provided for in
U.S. note 2(a) to this
subchapter.
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2. by inserting the following new heading 9903.01.02 in
numerical sequence, with the material in the new heading inserted in
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article
Description'', ``Rates
[[Page 11431]]
of Duty 1--General'', ``Rates of Duty 1--Special'' and ``Rates of
Duty 2'', respectively:
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Rates of duty
-----------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------- 2
General Special
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``9903.01.02............... Articles the product of The duty provided The duty provided No change.
Mexico 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(b) to this
subchapter.
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3. by inserting the following new heading 9903.01.03 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
-----------------------------------------------------------
Heading/subheading Article description 1
---------------------------------------- 2
General Special
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``9903.01.03............... Articles the product of The duty provided The duty provided No change.
Mexico 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.
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4. by inserting the following new U.S. note 2 to subchapter III
of chapter 99 of the HTSUS in numerical sequence:
``2. (a) For the purposes of heading 9903.01.01, products of
Mexico, other than products described in heading 9903.01.02 and
heading 9903.01.03, 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. Notwithstanding U.S. note 1 to this subchapter, all products
of Mexico that are subject to the additional ad valorem rate of duty
imposed by heading 9903.01.01 shall also be subject to the general
rates of duty imposed on products of Mexico entered under
subheadings in chapters 1 to 97 of the tariff schedule.
The additional duties imposed by heading 9903.01.01 apply to
products of Mexico including both goods of Mexico under the rules
set forth in part 102, title 19 of the Code of Federal Regulations,
as applicable, as well as goods for which Mexico was the last
country of substantial transformation prior to importation into the
United States.
Products of Mexico 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 heading 9903.01.01.
The additional duties imposed by heading 9903.01.01 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
Mexico), as described in the applicable subheading. For heading
9802.00.80, the additional duties apply to the value of the article
assembled abroad (in Mexico), less the cost or value of such
products of the United States, as described.
Products of Mexico that are provided for in heading 9903.01.01
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 9903.01.01.
Products of Mexico that are provided for in heading 9903.01.01
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.
(b) Heading 9903.01.02 covers only products of Mexico, 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. 2025-03665 Filed 3-3-25; 4:30 pm]
BILLING CODE 9111-14-P
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