Suspending Duty-Free De Minimis Treatment for All Countries
This Executive Order suspends the United States’ long-standing “de minimis” duty-free treatment for low‑value imported goods under 19 U.S.C. 1321(a)(2)(C). The suspension applies broadly (global basis) to most shipments not exempted under 50 U.S.C. 1702(b), requires carriers to collect duties on international postal shipments under a temporary per‑package or ad‑valorem method, and directs Customs and Border Protection (CBP) and the Department of Homeland Security (DHS) to implement the changes. The stated purpose is to prevent evasion of recent emergency tariffs and to address national‑security, public‑health, and trade‑policy threats (including illicit drug flows and trade deficits) by closing a pathway for low‑value shipments to avoid tariffs and enforcement. Effectively, most small‑value imports that previously entered the U.S. duty‑free will become dutiable as of August 29, 2025 (for goods entered or withdrawn on or after that date). The order imposes new collection, bonding, and entry requirements, temporarily sets per‑package duty amounts for postal shipments (for up to six months), and authorizes regulatory and tariff schedule changes to enforce the suspension. The order relies primarily on IEEPA and other executive authorities and includes severability and implementation provisions.
Key Points
- 1Suspension of de minimis exemption: The duty‑free de minimis exemption under 19 U.S.C. 1321(a)(2)(C) is withdrawn for all applicable shipments (global scope) not covered by 50 U.S.C. 1702(b). Except for international postal items, affected shipments must be entered in CBP’s Automated Commercial Environment (ACE) and will be subject to all applicable duties, taxes, fees, and charges.
- 2Treatment of international postal shipments: Postal items that otherwise would have been de minimis will be subject to duties described in Section 3. Carriers must collect and remit duties under either (a) an ad valorem approach equal to the “effective IEEPA tariff rate” for the article’s country of origin, or (b) a temporary specific per‑package fee (available for six months): $80, $160, or $200 per package depending on the country’s effective IEEPA tariff band. After six months, only the ad valorem method applies.
- 3Collection and bonding requirements: CBP may require an importation/entry bond for informal entries (≤ $2,500) and requires international carrier bonds for carriers delivering postal shipments. Carriers must apply a chosen collection methodology consistently and may change it no more than once per month (with notice to CBP).
- 4Implementation timeline and authority: The order takes effect for goods entered or withdrawn for consumption on or after 12:01 a.m. EDT on August 29, 2025. DHS (through CBP) is charged to implement the order, including amending regulations and the Harmonized Tariff Schedule if necessary, in consultation with other agencies. Implementation is subject to applicable law and availability of appropriations.
- 5Legal framework and severability: The order invokes IEEPA and other statutes and ties its action to earlier EOs that imposed emergency tariffs related to Canada, Mexico, China/Hong Kong, and a broader trade‑deficit policy. It contains severability language saying the suspension of de minimis treatment remains in effect even if the underlying emergency tariffs are invalidated.