Notice2025-03677
Further Amended Notice of Implementation of Additional Duties on Products of the People's Republic of China Pursuant to the President's Executive Order 14195, Imposing Duties To Address the Synthetic Opioid Supply Chain in the People's Republic of China
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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 14195, "Imposing Duties to Address the Synthetic Opioid Supply Chain in the People's Republic of China," as amended by the President's Executive Order 14200, "Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China," and further amended by the President's March 3, 2025 Executive Order, "Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China," which imposed an increase in the 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 is amending its February 12, 2025 Notice in the Federal Register, Amended Notice of 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, to reflect that appropriate action was 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 43 (Thursday, March 6, 2025)</title>
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[Federal Register Volume 90, Number 43 (Thursday, March 6, 2025)]
[Notices]
[Pages 11426-11429]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03677]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Further Amended Notice of Implementation of Additional Duties on
Products of the People's Republic of China Pursuant to the President's
Executive Order 14195, 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: Amended notice.
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SUMMARY: In order to effectuate the President's Executive Order 14195,
``Imposing Duties to Address the Synthetic Opioid Supply Chain in the
People's Republic of China,'' as amended by the President's Executive
Order 14200, ``Amendment to Duties Addressing the Synthetic Opioid
Supply Chain in the People's Republic of China,'' and further amended
by the President's March 3, 2025 Executive Order, ``Further Amendment
to Duties Addressing the Synthetic Opioid Supply Chain in the People's
Republic of China,'' which imposed an increase in the 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 is
amending its February 12, 2025 Notice in the Federal Register, Amended
Notice of 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, to reflect that appropriate
action was 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 (which include products of Hong
Kong) 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#c1b5b3a0a5a4b3a4aca4a5b881a2a3b1efa5a9b2efa6aeb7"><span class="__cf_email__" data-cfemail="f2868093969780979f97968bb2919082dc969a81dc959d84">[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#fb8f899a9f9e899e969e9f82bb98998bd59f9388d59c948d"><span class="__cf_email__" data-cfemail="f98d8b989d9c8b9c949c9d80b99a9b89d79d918ad79e968f">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On January 20, 2025, the President declared
[[Page 11427]]
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). See Executive Order 14195 (90 FR
9121) of February 1, 2025. Specifically, Executive Order 14195 adjusted
duties on imported products of the PRC, by imposing, consistent with
law, an additional 10 percent ad valorem rate of duty.
On February 5, 2025, the Secretary of Homeland Security issued a
notice in the Federal Register, 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
(hereinafter referred to as the ``China Duties Notice'') (90 FR 9038)
to reflect the appropriate action that was needed to modify the
Harmonized Tariff Schedule of the United States (HTSUS), as set out in
the Annex to that notice, to implement the additional duties imposed by
Executive Order 14195.
Subsequently, on February 5, 2025, the President amended subsection
(g) of section 2 of Executive Order 14195, to modify the application of
19 U.S.C. 1321 to goods covered by subsection (a) of section 2 of
Executive Order 14195. See Executive Order 14200, Amendment to Duties
Addressing the Synthetic Opioid Supply Chain in the People's Republic
of China (February 5, 2025). Specifically, as amended, subsection (g)
of section 2 of Executive Order 14195 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, 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 pursuant
to subsection (a) of section 2 of the Executive Order for covered
articles otherwise eligible for de minimis treatment.
To effectuate the changes made by Executive Order 14200, DHS
republished its China Duties Notice in its entirety with changes as
needed to implement Executive Order 14195 as amended by Executive Order
14200. See Amended Notice of 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 (90 FR
9431 February 12, 2025) (hereinafter ``the February 12, 2025 CBP
Notice'').
Executive Order 14195 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, to effectuate the Executive Order.
In order to implement the rates of duty imposed by Executive Order
14195, as amended by Executive Order 14200, effective on 12:01 a.m.
eastern standard time on February 4, 2025, subchapter III of chapter 99
of the HTSUS was modified by the Annex to the February 12, 2025 CBP
Notice.
Executive Order 14195, as amended by Executive Order 14200 and
implemented by modifications to the HTSUS announced in the Annex to the
February 12, 2025 CBP Notice, has been further modified by the
President's March 3, 2025 Executive Order, ``Further Amendment to
Duties Addressing the Synthetic Opioid Supply Chain in the People's
Republic of China''. The new E.O. increases the additional tariff rate
from 10 percent to 20 percent for covered products of the PRC (which
include products of Hong Kong) 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.
The Annex to this notice modifies the Harmonized Tariff Schedule of
the United States to provide for the increase of the tariff rate from
10 percent to 20 percent consistent with Executive Order [insert
title]. Articles that are the products of China, which 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 March 4, 2025, will be subject to the
additional ad valorem rate of duty provided for in new HTSUS heading
9903.01.24, except that goods entered for consumption, or withdrawn
from warehouse for consumption, 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, 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 HTSUS heading
9903.01.23. 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 HTSUS heading 9903.01.23, 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.
U.S. note 2(s) is amended to reflect that HTSUS heading 9903.01.20
applies to products of China and Hong Kong entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern standard time February 4, 2025, and prior to 12:01 a.m. eastern
standard time on March 4, 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 9903.01.24, 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 HTSUS heading 9903.01.21 or HTSUS heading 9903.01.22.
Specifically, HTSUS heading 9903.01.21 covers products encompassed by
50 U.S.C. 1702(b)(2) and HTSUS heading 9903.01.22 covers
[[Page 11428]]
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 duties provided for in new HTSUS headings
9903.01.20 and 9903.01.24 by the terms of those headings and U.S.
note 2(u).
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The additional ad valorem duty provided for in new HTSUS heading
9903.01.24 applies in addition to all other applicable duties, taxes,
fees, exactions, and charges.
Further, pursuant to Executive Order 14200, 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 9903.01.24 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, 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 to articles covered by
heading 9903.01.24 otherwise eligible for the ``de minimis'' exemption.
Accordingly, articles that are the product of China, including products
of Hong Kong, that are eligible for the de minimis exemption and are
covered by heading 9903.01.24 may continue to request de minimis entry
and clearance 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.
As of February 10, 2025, there will be no retroactive application
of these changes for any shipments that would have otherwise qualified
for de minimis treatment based on Executive Order 14200, ``Amendment to
Duties Addressing the Synthetic Opioid Supply Chain in the People's
Republic of China.''
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 9903.01.24.
The additional duties imposed by heading 9903.01.24 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 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 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 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 9903.01.24 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:
2.
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Rates of duty
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Heading/subheading Article description 1
---------------------------------------- 2
General Special
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``9903.01.24............... Except for products The duty provided The duty provided No Change''.
described in headings in the applicable in the applicable
9903.01.21, subheading + 20%. subheading + 20%.
9903.01.22, or
9903.01.23 articles
the product of China
and Hong Kong, as
provided for in U.S.
note 2(u) to this
subchapter.
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2. by inserting the following new U.S. note 2(u) to subchapter
III of chapter 99 of the HTSUS in numerical sequence:
``2. (u) For the purposes of heading 9903.01.24, products of
China and Hong Kong entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m., eastern standard
time on March 4, 2025, 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 20%
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 9903.01.24
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 9903.01.24.
The additional duties imposed by heading 9903.01.24 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
[[Page 11429]]
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
9903.01.24 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 9903.01.24.
Products of China and Hong Kong that are provided for in heading
9903.01.24 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.
3. by amending subdivision (s) of note 2 to insert ``which have
been entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern standard time February
4, 2025, and prior to 12:01 a.m. eastern standard time on March 4,
2025,'' after ``products of China and Hong Kong'' in the first
sentence in the first paragraph of the subdivision.
[FR Doc. 2025-03677 Filed 3-3-25; 10:00 pm]
BILLING CODE 9111-14-P
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