[Federal Register Volume 90, Number 148 (Tuesday, August 5, 2025)]
[Presidential Documents]
[Pages 37775-37780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-14897]
Presidential Documents
Federal Register / Vol. 90 , No. 148 / Tuesday, August 5, 2025 /
Presidential Documents
[[Page 37775]]
Executive Order 14324 of July 30, 2025
Suspending Duty-Free De Minimis Treatment for All
Countries
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the
National Emergencies Act (50 U.S.C. 1601 et seq.),
section 604 of the Trade Act of 1974, as amended (19
U.S.C. 2483), and section 301 of title 3, United States
Code, it is hereby ordered:
Section 1. Background. In Executive Order 14193 of
February 1, 2025 (Imposing Duties To Address the Flow
of Illicit Drugs Across Our Northern Border), I
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, I 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),
I paused the suspension of duty-free de minimis
treatment on such articles until I received a
notification from the Secretary of Commerce (Secretary)
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), I 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, I
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), I paused
the suspension of duty-free de minimis treatment on
such articles until I received a notification from the
Secretary 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), I 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, I 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
[[Page 37776]]
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), I paused the suspension of duty-free de
minimis treatment for articles described in section
2(a) of Executive Order 14195 until I received a
notification from the Secretary 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.
I subsequently received notification from the Secretary
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), I
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, I instructed the Secretary 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), I declared
a national emergency with respect to underlying
conditions indicated by the large and persistent annual
U.S. goods trade deficits. I 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 I received a
notification by the Secretary 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 has notified me 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.
In my judgment, I determine 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.
I determine 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. In my judgment, this suspension is necessary
and appropriate to ensure that the tariffs imposed by
Executive Order 14193, as amended, are effective in
addressing the emergency declared in Executive Order
14193 and that the purpose of this action and other
actions to address the emergency declared in Executive
Order 14193 is not undermined. For example, many
shippers go to great lengths to evade law enforcement
and hide illicit substances in imports that go through
international commerce. These shippers conceal the true
contents of shipments sent to the United States through
deceptive shipping practices. Some of the techniques
employed by these shippers to conceal the true contents
of the shipments, the identity of the distributors, and
the country of origin of the imports include the use of
re-shippers in the United States, false invoices,
fraudulent postage, and
[[Page 37777]]
deceptive packaging. The risks of evasion, deception,
and illicit-drug importation are particularly high for
low-value articles that have been eligible for duty-
free de minimis treatment.
Independently, I determine 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. In my judgment, and for
substantially similar reasons as above, this suspension
is necessary and appropriate to ensure that the tariffs
imposed by Executive Order 14194, as amended, are
effective in addressing the emergency declared in
Executive Order 14194 and that the purpose of this
action and other actions to address the emergency
declared in Executive Order 14194 is not undermined.
Independently, and after considering information newly
provided by the Secretary, among other things, I
determine 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. In my judgment,
and for substantially similar reasons as above, this
suspension is still necessary and appropriate to ensure
that the tariffs imposed by Executive Order 14195, as
amended, are effective in addressing the emergency
declared in Executive Order 14195 and that the purpose
of this action and other actions to address the
emergency declared in Executive Order 14195 is not
undermined.
Also independently, I determine 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. In my judgment, this
suspension is necessary and appropriate to ensure that
the tariffs imposed by Executive Order 14257, as
amended, are not evaded and are effective in addressing
the emergency declared in Executive Order 14257 and
that the purpose of this action and other actions to
address the emergency declared in Executive Order 14257
is not undermined.
Each of my determinations to suspend or continue to
suspend duty-free de minimis treatment under 19 U.S.C.
1321(a)(2)(C) are independent from the other. And each
determination is made only for the purpose to deal with
the respective emergency and not for the purpose of
dealing with another emergency.
Sec. 2. Suspension of Duty-Free de minimis Treatment.
(a) 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. Accordingly, all
such shipments, except those sent through the
international postal network, shall be subject to all
applicable duties, taxes, fees, exactions, and charges.
International postal shipments not covered by 50 U.S.C.
1702(b) shall be subject to the duty rates described in
section 3 of this order. Entry for all shipments that--
prior to the effective date of this order--qualified
for the de minimis exemption, 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.
(b) Shipments sent through the international postal
network 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 specified in section 3 of
this order, 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.
Sec. 3. Duty Rates for International Postal Shipments.
(a) Transportation carriers delivering shipments to the
United States through the international postal network,
or other parties if qualified in lieu of such
transportation
[[Page 37778]]
carriers, must collect and remit duties to CBP using
the methodology described in either subsection (b) or
(c) of this section. Each transportation carrier shall
apply the same methodology across all covered shipments
during any given period but may change its methodology
no more than once per calendar month, or on another
schedule determined to be appropriate by CBP, upon
providing at least 24 hours' notice to CBP.
(b) A duty equal to the effective IEEPA tariff rate
applicable to the country of origin of the product
shall be assessed on the value of each dutiable postal
item (package) containing goods entered for
consumption.
(c) A specific duty shall be 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 rate above 25 percent: $200 per
item.
(d) For all international postal shipments subject
to the methodologies described in subsections (b) and
(c) of this section, the country of origin of the
article must be declared to CBP.
(e) The specific duty methodology provided for in
subsection (c) of this section shall be available for
transportation carriers to select for a period of 6
months from the effective date of this order. After
such time all shipments to the United States through
the international postal network must comply with the
ad valorem duty methodology in subsection (b) of this
section.
(f) Shipments sent through the international postal
network that are subject to antidumping and
countervailing duties or a quota must continue to be
entered under an appropriate entry type in ACE to the
extent required by all applicable regulations.
Sec. 4. Implementation. (a) The requirements and
procedures established by sections 2 and 3 of this
order shall be 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.
(b) The provisions of this order supersede 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.
(c) Consistent with applicable law, the Secretary
of Homeland Security is directed and authorized to take
all necessary actions to implement and effectuate this
order--including through temporary suspension or
amendment of regulations or through notices in the
Federal Register and by adopting rules, regulations, or
guidance--and to employ all powers granted to the
President by IEEPA as may be necessary to implement and
effectuate this order. The Secretary of Homeland
Security, in consultation with the United States
International Trade Commission (ITC), shall determine
whether modifications to the Harmonized Tariff Schedule
of the United States are necessary to effectuate this
order and may make such modifications through notice in
the Federal Register. The Secretary of Homeland
Security shall consult with the Secretary of State, the
Secretary of the Treasury, the Attorney General, the
Secretary of Commerce, the United States Trade
Representative, the ITC, and the Postmaster General,
where appropriate. The Secretary of Homeland Security
may, consistent with applicable law, redelegate any of
these functions within the Department of Homeland
Security. All executive departments and agencies shall
take all appropriate measures within their authority to
implement this order.
(d) To ensure remittance of duties in accordance
with this order, and to assure compliance with other
legal requirements, CBP is authorized to
[[Page 37779]]
require a basic importation and entry bond as described
in 19 CFR 113.62 for informal entries valued at or less
than $2,500. Any carrier that transports international
postal shipments to the United States, by any mode of
transportation, must have an international carrier bond
as described in 19 CFR 113.64 to ensure payment of the
duties described in section 3 of this order. CBP is
authorized to ensure that the international carrier
bonds required by this subsection are sufficient to
account for the duties described in section 3 of this
order.
Sec. 5. Definition. As used in this order, 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.
Sec. 6. Severability. (a) If any provision of this
order or the application of any provision of this order
to any individual or circumstance is held to be
invalid, the remainder of this order and the
application of its provisions to any other individuals
or circumstances shall not be affected.
(b)(i) If the additional duties imposed under
Executive Order 14193, as amended, Executive Order
14194, as amended, Executive Order 14195, as amended,
or Executive Order 14257, as amended, are held to be
invalid, the suspension of, or continued suspension of,
duty-free de minimis treatment, as detailed in this
order, shall not be affected. Duty-free de minimis
treatment would still be suspended, whether pursuant to
my authority under 50 U.S.C. 1702(a)(1)(B) to
``regulate . . . importation'' or my authority under
that provision to ``nullify'' or ``void'' ``exercising
any right . . . or privilege with respect to . . . any
property,'' in the way and to the extent explained in
this order, to deal with the emergencies declared in
Executive Order 14193, as amended, Executive Order
14194, as amended, Executive Order 14195, as amended,
or Executive Order 14257, as amended. Such suspensions
are still necessary and appropriate to address the
unusual and extraordinary threats to the national
security, foreign policy, and economy of the United
States. Each determination to suspend or continue to
suspend duty-free de minimis treatment is still
independent from the other determination and made only
with the purpose to deal with the respective emergency
and not for the purpose of dealing with another
emergency. CBP is directed and authorized to take all
necessary actions consistent with applicable law to
implement and effectuate this order in line with this
section--including through temporary suspension or
amendment of regulations or through notices in the
Federal Register and by adopting rules, regulations, or
guidance--and to employ all powers granted to the
President by IEEPA as may be necessary to implement and
effectuate this order in line with this section.
(ii) Duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall
remain available for postal shipments until notification by the Secretary
to the President that adequate systems are in place to fully and
expeditiously process and collect duties applicable for postal shipments
otherwise eligible for duty-free de minimis treatment. After such
notification, duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C)
shall not be available for postal shipments.
Sec. 7. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
[[Page 37780]]
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
(d) The costs for publication of this order shall
be borne by the Department of Homeland Security.
(Presidential Sig.)
THE WHITE HOUSE,
July 30, 2025.
[FR Doc. 2025-14897
Filed 8-4-25; 11:15 am]
Billing code 4410-10-P