Notice2025-03901
Amendment to 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
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Published
March 11, 2025
Effective
March 7, 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 Executive Order 14226, "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, and further amended by the President's March 6, 2025 Executive order "Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border," 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 46 (Tuesday, March 11, 2025)</title>
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[Federal Register Volume 90, Number 46 (Tuesday, March 11, 2025)]
[Notices]
[Pages 11743-11746]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03901]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Amendment to 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 (CBP), Department of
Homeland Security.
ACTION: Notice.
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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
Executive Order 14226, ``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, and
further amended by the President's March 6, 2025 Executive order
``Amendment to Duties to Address the Flow of Illicit Drugs Across Our
Northern Border,'' 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 7, 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#c5b1b7a4a1a0b7a0a8a0a1bc85a6a7b5eba1adb6eba2aab3"><span class="__cf_email__" data-cfemail="31454350555443545c545548715253411f5559421f565e47">[email protected]</span></a>. C.
Shane Campbell, Acting 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#47333526232235222a22233e0724253769232f3469202831"><span class="__cf_email__" data-cfemail="acd8decdc8c9dec9c1c9c8d5eccfcedc82c8c4df82cbc3da">[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) (90 FR 8327, January 29, 2025). See National
[[Page 11744]]
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, 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, Executive Order 14193 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. With respect to imports
of energy and energy resources that are products of Canada, 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 14226,
``Amendment to Duties to Address the Flow of Illicit Drugs Across Our
Northern Border'' (March 2, 2025) (90 FR 11369, March 6, 2025).
Specifically, as amended, subsection (h) of section 2 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.
On March 6, 2025, the President signed Executive order ``Amendment
to Duties to Address the Flow of Illicit Drugs Across Our Northern
Border.'' In that Executive order, the President determined that
automotive production is a major source of U.S. employment and
innovation and integral to U.S. economic and national security. The
American automotive industry as currently structured often trades
substantial volumes of automotive parts and components across our
borders in the interest of bringing supply chains closer to North
America. In order to minimize disruption to the U.S. automotive
industry and automotive workers, the President determined that it is
appropriate to adjust tariffs imposed on articles of Canada.
Accordingly, articles that are entered free of duty as originating in
Canada under the terms of general note 11 to the Harmonized Tariff
Schedule of the United States (HTSUS), including any treatment set
forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter
99 of the HTSUS, as related to the Agreement between the United States
of America, United Mexican States, and Canada (USMCA), shall not be
subject to the additional ad valorem rate of duty described in section
2(a) or section 2(b) of Executive Order 14193.
Furthermore, the additional ad valorem rate of duty described in
Executive Order 14193 is reduced from 25% to 10% for potash that does
not qualify for duty-free treatment under the USMCA, but is a product
of Canada, in accordance with the March 6, 2025 Executive order. All
other products of Canada that do not qualify for duty-free treatment
under the USMCA shall remain subject to the rates set forth in
Executive Order 14193 (unless otherwise exempted).
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, Executive Order 14226, and the March 6, 2025
Executive order.
As such, this notice is revising the March 3, 2025 CBP Federal
Register Notice titled ``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'' (90 FR 11423, March 6, 2025) to implement the rates
of duty imposed by the Executive order, as amended, effective on 12:01
a.m. eastern standard time on March 7, 2025, subchapter III of chapter
99 of the HTSUS is modified by the Annex to this notice.
Articles that are entered free of duty as originating under the
terms of general note 11 to the HTSUS, including any treatment set
forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter
99 of the HTSUS, as related to USMCA, will not be subject to the
additional ad valorem rate of duty provided for in HTSUS heading
9903.01.10, as specified in new HTSUS heading 9903.01.14. Potash not
qualifying for duty-free treatment under the USMCA, but which is a
product of Canada, that is entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m. eastern standard time
on March 7, 2025, will be subject to the reduced additional 10% ad
valorem rate of duty provided for in HTSUS heading 9903.01.15, instead
of the 25% ad valorem rate provided for in HTSUS heading 9903.01.10.
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 heading 9903.01.15 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 9903.01.11 or HTSUS heading 9903.01.12, as
applicable. Specifically, HTSUS heading 9903.01.11 covers products
encompassed by 50 U.S.C. 1702(b)(2) and HTSUS heading
[[Page 11745]]
9903.01.12 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 duties provided for in new HTSUS headings
9903.01.14 and 9903.01.15 by the terms of those headings and new
U.S. note 2(j).
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The additional ad valorem duty provided for in new HTSUS heading
9903.01.15 applies in addition to all other applicable duties, taxes,
fees, exactions, and charges.
Further, pursuant to Executive Order 14226, 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 HTSUS headings 9903.01.14 and 9903.01.15 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 HTSUS headings 9903.01.14 and 9903.01.15 otherwise
eligible for the ``de minimis'' exemption. Accordingly, articles that
are products of Canada that are eligible for the de minimis exemption
and are covered by HTSUS headings 9903.01.14 and 9903.01.15 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.
The additional ad valorem duty provided for in new HTSUS heading
9903.01.15 also applies to products of Canada 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 HTSUS heading 9903.01.15.
The additional duties imposed by HTSUS heading 9903.01.15 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
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. 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
1. 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 7, 2025, subdivision (j) of note 2 to
subchapter III of chapter 99 of the Harmonized Tariff Schedule of
the United States (HTSUS) is modified by deleting ``and heading
9903.11.13,'' and by inserting ``9903.01.13, 9903.01.14, and
9902.01.15'' in lieu thereof. Subdivision (j) of note 2 to
subchapter III of chapter 99 of HTSUS is also modified with respect
to heading 9903.01.10 by deleting ``other than products described in
headings 9903.01.11, 9903.01.12 and 9903.01.13,'' and by inserting
``other than products described in headings 9903.01.11, 9903.01.12,
9903.01.13, 9903.01.14, and 9903.01.15,'' in lieu thereof.
2. The heading 9903.01.10 is modified by deleting ``except for
products described in headings 9903.01.11, 9903.01.12, and heading
9903.01.13,'' and by inserting ``except for products described in
headings 9903.01.11, 9903.01.12, 9903.01.13, 9903.01.14, and
9903.01.15,'' in lieu thereof.
3. The heading 9903.01.13 is modified by deleting ``except for
products described in headings 9903.01.11 and 9903.01.12,'' and by
inserting ``except for products described in headings 9903.01.11,
9903.01.12, 9903.01.14 and 9903.01.15.''
4. 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 7, 2025, note 2 to subchapter III of
chapter 99 of the HTSUS is modified by inserting the following new
subdivision (l):
``(l) For the purposes of heading 9903.01.15, products of
Canada, other than products described in headings 9903.01.11,
9903.01.12, and 9903.01.14, 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 Canada that are subject to the additional ad valorem rate of duty
imposed by heading 9903.01.15 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 heading 9903.01.15 apply to
products of Canada including 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 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
9903.01.15.
The additional duties imposed by heading 9903.01.15 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 heading 9903.01.15
shall continue to be subject to antidumping, countervailing, or
[[Page 11746]]
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 9903.01.15.
Products of Canada that are provided for in headings 9903.01.14
and 9903.01.15 that are otherwise eligible for the administrative
exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)--
known as the ``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.''
5. 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 7, 2025, the article description of
heading 9903.01.10 is modified by deleting ``9903.01.12 or,
9903.01.13,'' and by inserting ``9903.01.12, 9903.01.13, 9903.01.14
or 9903.01.15,'' in lieu thereof.
6. 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 7, 2025, subchapter III of chapter 99
of the HTSUS is modified by inserting new headings 9903.01.14 and
9903.01.15 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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``9903.01.14................... Articles that are No change........ The duty provided No change.
entered free of duty in the
under the terms of applicable
general note 11 to subheading.
the HTSUS, including
any treatment set
forth in subchapter
XXIII of chapter 98
and subchapter XXII
of chapter 99 of the
HTS, as related to
the USMCA.
9903.01.15..................... Potash that is a The duty provided No change........ No change''.
product of Canada, as in the
provided for in U.S. applicable
note 2(I) to this subheading + 10%.
subchapter.
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[FR Doc. 2025-03901 Filed 3-6-25; 7:00 pm]
BILLING CODE 9111-14-P
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