This Executive Order eliminates duty-free treatment for low-value imports from China and Hong Kong that previously qualified for the de minimis exemption, specifically targeting shipments that might contain concealed illicit substances. The order frames this action as a response to the synthetic opioid crisis in the United States, asserting that shippers from China often employ deceptive practices to hide illicit substances while exploiting the de minimis exemption. According to the order, the Secretary of Commerce has now certified that adequate systems are in place to process and collect tariff revenue for previously exempt goods. This represents a significant policy shift by closing what the administration characterizes as a loophole in international shipping that contributed to drug trafficking.
Effective May 2, 2025, all shipments valued at or under $800 from China or Hong Kong that would have previously qualified for duty-free treatment must now be properly entered through the Customs and Border Protection's Automated Commercial Environment with all applicable duties paid. For postal items specifically, the order establishes two alternative duty collection methods: either a 30% ad valorem duty or a specific duty of $25 per postal item (increasing to $50 after June 1, 2025). Transportation carriers must select one methodology, with the option to change once monthly with 24-hour notice to CBP. The order also requires all carriers transporting international postal packages from China or Hong Kong to report the number and value of items transported, maintain an international carrier bond, and remit collected duties to CBP on a monthly basis.
Implementation responsibilities fall primarily to the Secretary of Homeland Security, who is directed to take all necessary actions to execute the order, including adopting rules and regulations. Within 90 days, the Secretary of Commerce, in consultation with the United States Trade Representative, must submit a report on the impact of the order on American industries, consumers, and supply chains, along with recommendations for further action. This report must specifically address whether extending the ineligibility to packages from Macau is necessary to prevent circumvention. The order frames these measures as necessary to address the threat posed by China's alleged failure to stop the flow of synthetic opioids into the United States, while attempting to balance this objective with maintaining the orderly flow of legitimate international mail.