Notice2025-16802
Notice of Implementation of the President's Executive Order 14324, Suspending Duty-Free De Minimis Treatment for All Countries
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Published
September 2, 2025
Effective
August 29, 2025
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
In order to effectuate the President's Executive Order 14324 of July 30, 2025 (Suspending Duty-Free De Minimis Treatment For All Countries), the Secretary of Homeland Security has determined that appropriate action is needed to ensure collection of applicable duties as well as to modify the Harmonized Tariff Schedule of the United States (HTSUS) as set out in the Annex to this notice. Executive Order 14324 suspends the duty-free de minimis exemption otherwise authorized under section 321(a)(2)(C) of the Tariff Act of 1930, as amended, for all covered products, regardless of country of origin, valued at $800 or less, and requires such articles, except articles that are sent to the United States through the international postal network, to be entered using an appropriate entry type in the Automated Commercial Environment (ACE) by a party qualified to make entry. Executive Order 14324 also establishes a new duty rate for covered products that are sent to the United States through the international postal network.
Full Text
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<title>Federal Register, Volume 90 Issue 167 (Tuesday, September 2, 2025)</title>
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[Federal Register Volume 90, Number 167 (Tuesday, September 2, 2025)]
[Notices]
[Pages 42418-42421]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16802]
[[Page 42418]]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Implementation of the President's Executive Order
14324, Suspending Duty-Free De Minimis Treatment for All Countries
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 14324
of July 30, 2025 (Suspending Duty-Free De Minimis Treatment For All
Countries), the Secretary of Homeland Security has determined that
appropriate action is needed to ensure collection of applicable duties
as well as to modify the Harmonized Tariff Schedule of the United
States (HTSUS) as set out in the Annex to this notice. Executive Order
14324 suspends the duty-free de minimis exemption otherwise authorized
under section 321(a)(2)(C) of the Tariff Act of 1930, as amended, for
all covered products, regardless of country of origin, valued at $800
or less, and requires such articles, except articles that are sent to
the United States through the international postal network, to be
entered using an appropriate entry type in the Automated Commercial
Environment (ACE) by a party qualified to make entry. Executive Order
14324 also establishes a new duty rate for covered products that are
sent to the United States through the international postal network.
DATES: Except for articles sent to the United States through the
international postal network, as set out in the Annex to this document,
the amendments outlined herein are effective for articles that are
entered for consumption, or withdrawn from warehouse for consumption,
on or after 12:01 a.m. eastern daylight time on August 29, 2025. For
articles sent to the United States through the international postal
network, the duties set out in the Annex to this document are effective
for such covered articles that are entered for consumption on or after
12:01 a.m. eastern daylight time on August 29, 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#73070112171601161e16170a331011035d171b005d141c05"><span class="__cf_email__" data-cfemail="80f4f2e1e4e5f2e5ede5e4f9c0e3e2f0aee4e8f3aee7eff6">[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#97e3e5f6f3f2e5f2faf2f3eed7f4f5e7b9f3ffe4b9f0f8e1"><span class="__cf_email__" data-cfemail="8afef8ebeeeff8efe7efeef3cae9e8faa4eee2f9a4ede5fc">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: In Executive Order 14193 of February 1, 2025
(Imposing Duties To Address the Flow of Illicit Drugs Across Our
Northern Border), the President declared a national emergency regarding
the unusual and extraordinary threat to the safety and security of
Americans, including the public health crisis caused by 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 illicit
drugs. In that order, the President determined that it was necessary
and appropriate to, among other things, suspend duty-free de minimis
treatment under 19 U.S.C. 1321(a)(2)(C) for articles described in
section 2(a) and section 2(b) of that order. In Executive Order 14226
of March 2, 2025 (Amendment to Duties To Address the Flow of Illicit
Drugs Across Our Northern Border), the President paused the suspension
of duty-free de minimis treatment on such articles until the President
received a notification from the Secretary of Commerce that adequate
systems are in place to fully and expeditiously process and collect
duties for such articles that would otherwise be eligible for duty-free
de minimis treatment.
In Executive Order 14194 of February 1, 2025 (Imposing Duties To
Address the Situation at Our Southern Border), the President declared a
national emergency regarding the unusual and extraordinary threat to
the safety and security of Americans, including the public health
crisis caused by fentanyl and other illicit drugs and the failure of
Mexico to do more to arrest, seize, detain, or otherwise intercept drug
trafficking organizations, other drug and human traffickers, criminals
at large, and illicit drugs. In that order, the President determined
that it was necessary and appropriate to, among other things, suspend
duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for
articles described in section 2(a) of that order. In Executive Order
14227 of March 2, 2025 (Amendment to Duties To Address the Situation at
Our Southern Border), the President paused the suspension of duty-free
de minimis treatment on such articles until the President received a
notification from the Secretary of Commerce that adequate systems are
in place to fully and expeditiously process and collect duties for such
articles that would otherwise be eligible for duty-free de minimis
treatment.
In Executive Order 14195 of February 1, 2025 (Imposing Duties To
Address the Synthetic Opioid Supply Chain in the People's Republic of
China), the President declared a national emergency regarding the
unusual and extraordinary threat from the failure of the Government of
the People's Republic of China (PRC) to arrest, seize, detain, or
otherwise intercept chemical precursor suppliers, money launderers,
other transnational criminal organizations, criminals at large, and
illicit drugs. In that order, the President determined that it was
necessary and appropriate to, among other things, suspend duty-free de
minimis treatment under 19 U.S.C. 1321(a)(2)(C) for articles described
in section 2(a) of that order. In Executive Order 14200 of February 5,
2025 (Amendment to Duties Addressing the Synthetic Opioid Supply Chain
in the People's Republic of China), the President paused the suspension
of duty-free de minimis treatment for articles described in section
2(a) of Executive Order 14195 until the President received a
notification from the Secretary of Commerce that adequate systems are
in place to fully and expeditiously process and collect duties for such
articles that would otherwise be eligible for duty-free de minimis
treatment.
The President subsequently received notification from the Secretary
of Commerce that adequate systems have been established to process and
collect duties for articles of the PRC and Hong Kong that would
otherwise be eligible for duty-free de minimis treatment, and in
Executive Order 14256 of April 2, 2025 (Further Amendment to Duties
Addressing the Synthetic Opioid Supply Chain in the People's Republic
of China as Applied to Low-Value Imports), the President suspended
duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for
products of the PRC and Hong Kong described in section 2(a) of
Executive Order 14195, as amended by Executive Order 14228 (Further
Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the
People's Republic of China). In addition, the President instructed the
Secretary of Commerce to submit a report regarding the impact of
Executive Order 14256 on American industries, consumers, and supply
chains and to make recommendations for further action as he deems
necessary.
In Executive Order 14257 of April 2, 2025 (Regulating Imports With
a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large
and Persistent Annual United States Goods Trade Deficits), the
President declared a national emergency with respect to
[[Page 42419]]
underlying conditions indicated by the large and persistent annual U.S.
goods trade deficits. The President also provided that duty-free de
minimis treatment under 19 U.S.C. 1321(a)(2)(C) would remain available
for products described in section 3(a) of that order until the
President received a notification by the Secretary of Commerce that
adequate systems are in place to fully and expeditiously process and
collect duties applicable for articles otherwise eligible for duty-free
de minimis treatment.
The Secretary of Commerce has notified the President that adequate
systems are now in place to fully and expeditiously process and collect
duties for articles otherwise eligible for duty-free de minimis
treatment on a global basis, including for products described in
section 2(a) and section 2(b) of Executive Order 14193, section 2(a) of
Executive Order 14194, and section 3(a) of Executive Order 14257.
As stated in Executive Order 14324 of July 30, 2025 (Suspending
Duty-Free De Minimis Treatment For All Countries), the President
determined that it is still necessary and appropriate to suspend duty-
free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) in the manner
and for the articles described below to deal with the unusual and
extraordinary threats, which have their source in whole or substantial
part outside the United States, to the national security, foreign
policy, and economy of the United States.
The President determined that it is necessary and appropriate to
suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C)
for certain Canadian goods to deal with the emergency declared in
Executive Order 14193, as amended.
Independently, the President determined that it is necessary and
appropriate to suspend duty-free de minimis treatment under 19 U.S.C.
1321(a)(2)(C) for certain Mexican goods to deal with the emergency
declared in Executive Order 14194, as amended.
Independently, and after considering information newly provided by
the Secretary of Commerce, among other things, the President determined
that it is still necessary and appropriate to continue to suspend duty-
free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for certain
goods of the PRC and Hong Kong to deal with the emergency declared in
Executive Order 14195, as amended.
Also independently, the President determined that it is necessary
and appropriate to suspend duty-free de minimis treatment under 19
U.S.C. 1321(a)(2)(C) on a global basis to deal with the emergency
declared in Executive Order 14257, as amended.
A. Suspension of Duty-Free De Minimis Treatment
Consistent with Executive Order 14324, the duty-free de minimis
exemption provided under 19 U.S.C. 1321(a)(2)(C) shall no longer apply
to any shipment of articles not covered by 50 U.S.C. 1702(b),
regardless of value, country of origin, mode of transportation, or
method of entry, that is entered for consumption, or withdrawn from
warehouse for consumption, on or after 12:01 a.m. eastern daylight time
on August 29, 2025. Accordingly, all such shipments, except those sent
through the international postal network, shall be subject to all
applicable duties, taxes, fees, exactions, and charges. Entry for all
such shipments, except for shipments sent through the international
postal network, shall be filed using an appropriate entry type in the
Automated Commercial Environment (ACE) by a party qualified to make
such entry in accordance with applicable regulations.\1\ All applicable
duties must be paid in accordance with the applicable entry and payment
procedures. Shipments valued at or under $800 that would otherwise be
ineligible for the de minimis exemption, such as shipments of
merchandise subject to antidumping or countervailing duties or quota,
must continue to be entered under an appropriate entry type in ACE
consistent with all applicable requirements.
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\1\ An alternative entry process may be appropriate for articles
eligible for duty exemptions which are not affected by Executive
Order 14324.
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Pursuant to Executive Order 14324, effective 12:01 a.m. eastern
daylight time on August 29, 2025, shipments sent through the
international postal network not covered by 50 U.S.C. 1702(b) that
would otherwise qualify for the de minimis exemption under 19 U.S.C.
1321(a)(2)(C) shall pass free of any duties except those duties
specified in section 3 of Executive Order 14324, and without the
preparation of an entry by U.S. Customs and Border Protection (CBP),
until such time as CBP establishes a new entry process and publishes
that process in the Federal Register. Such international postal
shipments shall be subject to one of the following two duty rates as
elected by the carrier:
1. Ad valorem Duty: An ad valorem duty equal to the total
effective tariff rate under the International Emergency Economic
Powers Act (IEEPA), termed the ``effective IEEPA tariff rate,'' \2\
that is applicable to the country of origin of the product and
assessed on the value of each dutiable postal item (package)
containing goods entered for consumption.
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\2\ Pursuant to section 5 of Executive Order 14324, the term
``effective IEEPA tariff rate'' means the total duty rate imposed on
articles to address a national emergency declared under IEEPA,
including Executive Order 14257, as amended; Executive Order 14193,
as amended; Executive Order 14194, as amended; and Executive Order
14195, as amended, in accordance with the stacking rules set out in
Executive Order 14289 of April 29, 2025 (Addressing Certain Tariffs
on Imported Articles), and any subsequent order or proclamation
addressing stacking or the applicability of tariffs imposed under
IEEPA.
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2. Specific Duty: A specific duty assessed on each package
containing goods entered for consumption, based on the effective
IEEPA tariff rate applicable to the country of origin of the product
as follows:
(i) Countries with an effective IEEPA tariff rate of less than
16 percent: $80 per item;
(ii) Countries with an effective IEEPA tariff rate between 16
and 25 percent (inclusive): $160 per item; and
(iii) Countries with an effective IEEPA tariff rate above 25
percent: $200 per item.
The Secretary of Homeland Security has determined that appropriate
action is needed to modify the HTSUS as set out in the Annex to this
notice to implement the duty rates established by Executive Order
14324. Moreover, pursuant to section 3(d) of that order, for all
international postal shipments subject to the ad valorem or specific
duty, the article's country of origin must be declared to CBP.
All carriers delivering shipments to the United States through the
international postal network, or other parties if qualified in lieu of
such carriers, that are approved by CBP, must collect and remit to CBP
either the ad valorem or the specific duty. CBP will provide separate
guidance on the requirements applicable to such qualified parties,
including the definition of a ``qualified party.'' Carriers, or such
other qualified parties, must apply the same duty collection
methodology for all covered shipments, but may change their duty
collection methodology once a month or on such other periodic time
frame as CBP determines is appropriate, upon providing 24 hours advance
notice to CBP. Carriers, or such other qualified parties, must remit to
CBP the duties collected pursuant to sections 3(b) and 3(c) of
Executive Order 14324 on a monthly basis or on such other periodic time
frame as CBP determines is appropriate. CBP will provide separate
guidance instructing carriers and other qualified parties on how to
remit payments. The specific duty will be available for carriers and
other qualified
[[Page 42420]]
parties to select for a period of 6 months from the August 29, 2025
effective date of Executive Order 14324. After such time, all covered
shipments to the United States through the international postal network
must comply with the ad valorem duty.
Executive Order 14324 supersedes section 2 of Executive Order
14256, as amended, with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on August 29, 2025. Accordingly, the provisions
of this Federal Register notice supersede those found at 90 FR 17608
(Apr. 28, 2025) with respect to goods entered for consumption, or
withdrawn from warehouse for consumption, on or after 12:01 a.m.
eastern daylight time on August 29, 2025. Section 2 of Executive Order
14256, as amended, and the provisions of the Federal Register notice
found at 90 FR 17608 (Apr. 28, 2025), will remain in effect with
respect to covered goods entered for consumption, or withdrawn from
warehouse for consumption, before 12:01 a.m. eastern daylight time on
August 29, 2025.
Shipments sent through the international postal network that would
not otherwise qualify for the de minimis exemption under 19 U.S.C.
1321(a)(2)(C) shall continue to utilize an appropriate informal (19 CFR
145.12(b)) \3\ or formal (19 CFR 145.12(a)) entry type.
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\3\ The informal entry process detailed in 19 CFR 145.12(b) is
only applicable to articles which are not covered by Executive Order
14324, meaning products that would not otherwise have been eligible
for the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) or
products listed in 50 U.S.C. 1702(b). This informal entry process is
not applicable to any covered products which are sent to the United
States through the international postal network.
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B. Bonding Requirements
Pursuant to section 4(d) of Executive Order 14324, any carrier that
transports international postal shipments to the United States, by any
mode of transportation, must have an international carrier bond (19 CFR
113.64) to ensure that the duties are remitted in accordance with
sections 3(b) and 3(c) of Executive Order 14324. CBP is authorized to
ensure that the international carrier bond is sufficient to account for
the duties the carrier is obligated to remit. CBP will monitor
compliance as to accurate classification and valuation, as part of
ensuring fulfilment of all requirements applicable to informally
entered merchandise--to include the proper presentation of informal
entries for physical exam.
As authorized by section 4(d) of Executive Order 14324, CBP may
require a basic importation and entry bond (19 CFR 113.62) for informal
entries valued at $2,500 or less to ensure remittance of duties in
accordance with this order, and to assure compliance with other legal
requirements. CBP will require a basic importation and entry bond for
qualified parties who collect and remit duties to CBP for shipments
sent through the international postal network. Such qualified parties
will accept liability for payment of said duties and CBP may pursue
collection against the qualified party's bond in instances where duties
are not remitted to CBP in accordance with sections 3(b) and 3(c) of
Executive Order 14324. Qualified parties are also expected to comply
with all other applicable requirements as determined by CBP. CBP is
authorized to ensure that the requisite bond is sufficient to account
for the duties the qualified party remits.
C. Formal Entry May Be Required
For all shipments of articles subject to Executive Order 14324, CBP
may require formal entry in accordance with existing regulations (19
CFR 143.22 and 145.12(a)(1)). An international postal package for which
CBP requires formal entry will not be subject to the duty rates in
sections 3(b) and 3(c) of Executive Order 14324 and instead will be
subject to all applicable duties, taxes, and fees in accordance with
all applicable laws.
D. Suspension of Regulations
All CBP regulatory provisions that are not consistent with, or that
otherwise impede CBP's ability to effectuate, the directives in
Executive Order 14324 implemented in this notice, are temporarily
suspended or amended, as applicable, pursuant to the authorization in
Executive Order 14324 permitting CBP to take all necessary actions to
effectuate the objectives of that order. The regulations that are
hereby temporarily suspended, until further notice, pursuant to this
authorization, include, but may not be limited to: 19 CFR 145.12(b)
(pertaining to CBP's preparation of informal mail entry for products
covered by Executive Order 14324); 19 CFR 145.31 (pertaining to mail
importations not over $800 in value); the parenthetical exception
clause in 19 CFR 143.21(a) (pertaining to articles valued in excess of
$250 classified in Chapter 99, Subchapters III and IV, HTSUS); and any
provision of CBP regulations, other than with respect to mail, that
permits filers to file entries with CBP, for articles valued at or
under $800 and that would otherwise qualify for the de minimis
exemption authorized in 19 U.S.C. 1321(a)(2)(C), other than through
ACE.
E. Status of ACE Entry Type 86 Test
Pursuant to section 4(c) of Executive Order 14324 directing the
Secretary of Homeland Security to take all necessary actions to
implement and effectuate that order, type 86 entries may no longer be
utilized.
F. Articles Covered by 50 U.S.C. 1702(b)
Pursuant to section 2(a) of Executive Order 14324, the de minimis
exemption otherwise authorized under 19 U.S.C. 1321(a)(2)(C) shall not
apply to any shipment of articles except those covered by 50 U.S.C.
1702(b). Articles covered by 50 U.S.C. 1702(b) are certain donations,
informational materials, and accompanying baggage as described in the
applicable statutory provisions. Of these articles, only certain
donations and informational materials are within the scope of 19 U.S.C.
1321(a)(2)(C).\4\ The de minimis exemption shall continue to apply to
such donations and informational materials in accordance with section
2(a) of Executive Order 14324 and the HTSUS modifications as set forth
in the Annex to this document. Such articles may only be accorded duty-
free treatment under the de minimis exemption if entered through the
``release from manifest'' process pursuant to 19 CFR 143.23(j)(3) or 19
CFR 128.24(e), as applicable. CBP will verify compliance with all
applicable requirements to enforce Executive Order 14324.
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\4\ A separate duty exemption is authorized under 19 U.S.C.
1321(a)(2)(B) for ``articles accompanying, and for the personal or
household use of, persons arriving in the United States who are not
entitled to any exemption from duty under subheading 9804.00.30,
9804.00.65, or 9804.00.70 of [the HTSUS],'' which is not affected by
Executive Order 14324 of July 30, 2025, whereas the de minimis
exemption authorized under 19 U.S.C. 1321(a)(2)(B) is for ``any
other case.''
Kristi Noem,
Secretary of Homeland Security.
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 daylight time on August 29, 2025, subchapter III of chapter
99 of the HTSUS is modified:
1. by modifying U.S. note 2(w) by deleting the last paragraph.
2. by inserting the following new subdivision (y) to U.S. Note 2
in numerical sequence:
``Products of all countries are not eligible for the
administrative exemption from duty and certain taxes at 19 U.S.C.
1321(a)(2)(C),
[[Page 42421]]
known as the ``de minimis'' exemption, except for the following:
products that are donations, by persons subject to the jurisdiction
of the United States, 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 19
U.S.C. 1701, (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; and, products that are informational materials,
including but not limited to, publications, films, posters,
phonograph records, photographs, microfilms, microfiche, tapes,
compact disks, CDROMs, artworks, and news wire feeds.
Products shipped through the international postal network that
are valued at or under $800 and that would otherwise qualify for the
de minimis exemption authorized at 19 U.S.C. 1321(a)(2)(C) shall be
subject to either an ad valorem or specific duty based on the total
duty rate imposed on the article to address a national emergency
declared under the International Emergency Economic Powers Act
(IEEPA)--termed the ``effective IEEPA tariff rate.'' The ad valorem
duty is equal to the effective IEEPA tariff rate applicable to the
country of origin of the product and shall be assessed on the value
of each dutiable postal item (package) containing goods. The
specific duty is based on the effective IEEPA tariff rate applicable
to the country of origin of the product: (i) products of countries
with an effective IEEPA tariff rate of less than 16 percent: $80 per
item; (ii) products of countries with an effective IEEPA tariff rate
between 16 and 25 percent (inclusive): $160 per item; (iii) products
of countries with an effective IEEPA rate above 25 percent: $200 per
item. The specific duty will cease to be effective for products
entered for consumption on or after 12:01 a.m. eastern daylight time
on February 28, 2026, at which time only the ad valorem will be
applicable.''
[FR Doc. 2025-16802 Filed 8-28-25; 4:15 pm]
BILLING CODE 9111-14-P
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