Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China as Applied to Low-Value Imports
This executive order amends the existing regime governing the U.S. response to the synthetic opioid supply chain tied to the People’s Republic of China (PRC) by eliminating duty-free “de minimis” treatment for a broad class of small-value imports from the PRC (including Hong Kong) and imposing new duties on those shipments. Specifically, shipments valued at $800 or less that would have qualified for the de minimis exemption and are products of the PRC or Hong Kong will now be subject to duties collected at the border, rather than being duty-free. The order creates two tracks for collecting those duties: (1) a general provision for non-postal shipments, and (2) a dedicated duty framework for international postal shipments (carried via the postal network). It also requires carriers to report shipment counts and values, imposes bond requirements to ensure payment, and gives customs authorities authority to implement formal entry for certain packages. The intent is to deter illicit shipments connected to the synthetic opioid trade while maintaining orderly mail flows. The order directs coordination among Homeland Security, the Treasury, the Attorney General, Commerce, and other agencies, and requires HTSUS (tariff schedule) adjustments by the ITC. A monitoring provision expects a Commerce Department report within 90 days on impact and potential next steps, including whether to extend de minimis restrictions to Macau.
Key Points
- 1End of duty-free treatment for small PRC/Hong Kong shipments: The order removes duty-free de minimis eligibility for products from the PRC (including Hong Kong) described in Executive Order 14195/14228, for shipments entered after May 2, 2025, that would otherwise qualify for the de minimis exemption under 19 U.S.C. 1321(a)(2)(C). All such shipments will now be subject to duties.
- 2New duty framework for low-value shipments: For shipments described in section 2(a) that are sent to the United States and valued at $800 or less, the order imposes duties at import, with the U.S. agencies (primarily CBP) collecting those duties in accordance with the listed regimes. The order gives priority to ensuring revenue collection while preserving orderly mail flow.
- 3Postal shipments subject to explicit duties: For postal items containing goods from the PRC/Hong Kong sent via the international postal network and valued at $800 or less, duties apply under a specified schedule (30% ad valorem or per-item charges of $25 for the period May 2–May 31, 2025, and $50 per item starting June 1, 2025). Carriers must collect and remit these duties to CBP, and may adjust their collection method monthly with 24-hour notice.
- 4Carrier reporting and bonds: Carriers transporting international postal items must report total counts and, if using per-item duties, the value of each item. They must maintain international carrier bonds to guarantee payment of the duties, with DHS empowered to ensure sufficient bonding.
- 5Implementation and oversight: The Secretary of Homeland Security is tasked with implementing the order, with cooperation from the Treasury, Attorney General, and Commerce (including regulatory actions). The order also requires timely HTSUS adjustments by the ITC to reflect these actions.
- 6Monitoring and potential expansion: Within 90 days, the Secretary of Commerce (in consultation with the U.S. Trade Representative) must report on the order’s impact on industries, consumers, and supply chains, and may recommend further action, including whether to extend de minimis ineligibility to Macau to prevent circumvention.