Further Amendment to U.S. Duties Applied to Low-Value Imports from China
UPDATE: April 9, 2025
ADDED: AMENDMENT TO RECIPROCAL TARIFFS AND UPDATED DUTIES AS APPLIED TO LOW-VALUE IMPORTS FROM THE PEOPLEโS REPUBLIC OF CHINA
On April 8, 2025, President Trump issued an Executive Order amending the reciprocal tariffs and updating duties applied to imports from the People’s Republic of China.
Below is a summary of the amendment. To review the compete Executive Order, please click on the link below.
Section 1. Background
- National Emergency Declaration: On April 2, 2025, Executive Order 14257 was issued, declaring a national emergency due to significant U.S. goods trade deficits, impacting national security and the economy.
- Tariff Imposition: Additional ad valorem duties were imposed to address the trade deficit threat, with the authority to modify tariffs further if trading partners retaliate.
- Response to Retaliation: Following the U.S. actions, the People’s Republic of China announced a 34% tariff on U.S. goods effective April 10, 2025. This was a direct response to the tariffs imposed by the U.S.
- Modification of Tariff Schedule: In light of China’s retaliation, the U.S. will modify the Harmonized Tariff Schedule to increase duties on Chinese imports, reinforcing the government’s stance on protecting national interests.
- Changes to Duty-Free Treatment: Executive Order 14256, also issued on April 2, 2025, eliminated duty-free de minimis treatment for certain imports from China, effective May 2, 2025.
Section 2. Tariff Increase
In recognition of the fact that the PRC has announced that it will retaliate against the United States in response to Executive Order 14257, the HTSUS shall be modified as follows. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 9, 2025:
- (a) heading 9903.01.63 of the HTSUS shall be amended by deleting โ34%โ each place that it appears and by inserting โ84%โ in lieu thereof; and
- (b) subdivision (v)(xiii)(10) of U.S. note 2 to subchapter III of chapter 99 of the HTSUS shall be amended by deleting โ34%โ, and inserting โ84%โ in lieu thereof.
Section 3. De Minimis Tariff Increase
To ensure that the imposition of tariffs pursuant to section 2 of this order is not circumvented and that the purpose of Executive Order 14257 and this action is not undermined:
- (a) increase the ad valorem rate of duty set forth in section 2(c)(i) of Executive Order 14256 from 30 percent to 90 percent
- (b) increase the per postal item containing goods duty in section 2(c)(ii) of Executive Order 14256 that is in effect on or after 12:01 a.m. eastern daylight time on May 2, 2025, and before 12:01 a.m. eastern daylight time on June 1, 2025, from 25 dollars to 75 dollars; and
- (c) increase the per postal item containing goods duty in section 2(c)(ii) of Executive Order 14256 that is in effect on or after 12:01 a.m. eastern daylight time on June 1, 2025, from 50 dollars to 150 dollars.
Section 4. Implementation
- Key Directive: The Secretary of Commerce, Secretary of Homeland Security, and the U.S. Trade Representative are tasked with implementing the order, in consultation with other key officials.
- Collaborative Effort: This directive involves coordination with:
- Secretary of State
- Secretary of the Treasury
- Assistant to the President for Economic Policy
- Senior Counselor for Trade and Manufacturing
- Assistant to the President for National Security Affairs
- Chair of the International Trade Commission
- Implementation Actions: The officials are authorized to take necessary actions, which may include:
- Temporary suspension or amendment of regulations
- Adjustments to notices in the Federal Register
- Adoption of new rules and regulations
- Legal Authority: Actions must align with applicable laws, leveraging powers granted to the President by the International Emergency Economic Powers Act (IEEPA).
- Agency Responsibility: Each executive department and agency is required to take appropriate measures within their authority to ensure the order is effectively implemented.
Section 5. 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, 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.
(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.
Previous Post
Executive Order, April 2, 2025
Below is a summary of the Executive Order published on April 2, 2025. To review the complete Executive Order, please click on the link below:
Section 1. Purpose
- Illicit Shipping Practices: Shippers in the Peopleโs Republic of China (PRC) often hide illegal substances and misrepresent the contents of shipments to the United States, utilizing deceptive practices to evade detection.
- De Minimis Exemption: These practices are frequently facilitated by the de minimis exemption under section 321(a)(2)(C) of the Tariff Act of 1930, allowing small shipments to enter the U.S. without duties.
- Impact on Synthetic Opioid Crisis: Executive Orders 14195 and 14228 highlight the significant role of these exports in the ongoing synthetic opioid crisis in the U.S., emphasizing the urgent need for regulatory action.
- Suspension of Duty-Free Treatment: As of May 2, 2025, the duty-free de minimis treatment for certain goods from the PRC will be suspended, meaning that these products will now be subject to additional duties.
- Implementation of Tariff Revenue Systems: The Secretary of Commerce has confirmed that systems are now in place to process and collect tariff revenue for goods previously eligible for duty-free treatment under the de minimis exemption.
- Affected Goods: This change affects international postal packages from the PRC and Hong Kong that are intended for consumption in the U.S., ensuring stricter enforcement against illicit shipments.
Section 2. Assessment of Duties on Low-Value Products of the Peoples Republic of China (PRC)
Subsection 2(a)
- Effective Date: Starting from May 2, 2025, specific regulations will apply to shipments of certain articles from the PRC or Hong Kong to the United States.
- Duty Regulations: All shipments valued at or under $800 that would typically qualify for the de minimis exemption must now adhere to new duty regulations as outlined in Executive Orders 14195 and 14228.
- Entry Procedures: Shipments must be entered by a qualified party through the Automated Commercial Environment (ACE), operated by U.S. Customs and Border Protection (CBP).
- Payment of Duties: All applicable duties, including those imposed by the executive orders, must be paid following the appropriate entry and payment procedures.
- Agency Responsibilities: Various executive departments, including the Department of Homeland Security, are tasked with implementing these regulations. This may involve temporarily suspending or amending existing regulations.
- Harmonized Tariff Schedule Updates: The United States International Trade Commission will modify the Harmonized Tariff Schedule of the United States (HTSUS) as necessary to reflect these changes.
Subsection 2(b): Imposition of Duty
Subsection 2(b)(i)
- Duties on Postal Items: All postal items containing goods valued at or under $800 from the PRC or Hong Kong will be subject to specific duties.
- Executive Order Basis: This regulation stems from Executive Order 14195 and aims to address the influx of synthetic opioids into the United States.
- De Minimis Exemption: Items that would otherwise qualify for the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) will now incur these duties.
- Duties Imposed: The duties described are imposed in lieu of any other duties that the shipments would typically be subject to, including:
- The 20% ad valorem duty established in Executive Order 14195, as amended by Executive Order 14228.
- Most-favored nation rates as outlined in HTSUS.
- Duties imposed under section 301 of the Trade Act of 1974.
- Purpose: This measure aims to ensure the orderly flow of legitimate international mail while tackling the serious threat posed by synthetic opioids.
Subsection 2(b)(ii)
- CBP is authorized to require the carrier transporting the international postal package into the United States to remit payment of the duty described in subsection (c) of this section to CBP monthly or on such other periodic time frame as CBP determines appropriate, and CBP may issue regulations and guidance as necessary or appropriate to implement and enforce this requirement.
Subsection 2(b)(iii)
- Carriers’ Responsibility: All carriers transporting international postal packages from the People’s Republic of China (PRC) or Hong Kong to the United States must comply with specific reporting requirements set by Customs and Border Protection (CBP).
- Reporting Requirements:
- Carriers must report the total number of postal items containing goods.
- If opting for the duty rate specified in subsection (c)(i), carriers must also report the value of each postal item.
- Submission Protocol:
- Reports must be submitted in a timeframe and manner prescribed by CBP.
- Carriers may need to provide additional documentation and information to verify the total number and value of individual postal items.
- Electronic Transmission: Information must be electronically transmitted through the Automated Commercial Environment (ACE).
Subsection 2(c): Duty Rates
- Duties Collection Requirement: Transportation carriers delivering shipments to the United States from the People’s Republic of China (PRC) or Hong Kong are required to collect and remit duties to U.S. Customs and Border Protection (CBP).
- Collection Methodology: Carriers must apply the same duty collection methodology for all shipments they handle.
- Monthly Changes Allowed: Transportation carriers have the flexibility to change their duty collection methodology once a month or on a periodic basis as determined appropriate by CBP.
- Notice Requirement: Any changes to the collection methodology must be communicated to CBP with a 24-hour notice.
Subsection 2(c)(i): Ad Valorem Duty
30 percent of the value of the postal item containing goods for merchandise entered for
consumption on or after 12:01 am eastern daylight time on May 2, 2025.
Subsection 2(c)(ii): Specific Duty
- 25 dollars per postal item containing goods for merchandise entered for consumption on or after 12:01 am eastern daylight time on May 2, 2025, and before 12:01 am eastern daylight time on June 1, 2025
- 50 dollars per postal item containing goods for merchandise entered for consumption on or after 12:01 am eastern daylight time on June 1, 2025.
Subsection 2(d): Bond Requirement
- International Carrier Bonds Required: Any carrier transporting international postal items containing goods from the Peopleโs Republic of China (PRC) or Hong Kong to the United States must obtain an international carrier bond.
- Purpose of the Bond: This bond ensures the payment of duties as described in subsections (b) and (c) of the relevant regulations.
- CBP Authorization: The Customs and Border Protection (CBP) agency is authorized to verify that the international carrier bonds are adequate to cover the duties mentioned.
- Compliance Importance: Carriers must comply with these requirements to facilitate smooth international shipping and avoid potential penalties.
Subsection 2(e): Discretion to Require Formal Entry
- CBP Regulation Overview: U.S. Customs and Border Protection (CBP) may mandate formal entry for certain international postal packages.
- Duty Exemptions: Packages requiring formal entry will not incur duties as specified in subsections (b) and (c) of the regulations.
- Applicable Fees: Instead, these packages will be subject to all relevant duties, taxes, and fees according to applicable laws.
- Implications for Importers: Importers should be aware of these regulations to avoid unexpected costs and ensure compliance.
- General Public Awareness: Understanding these requirements is crucial for anyone receiving international packages to navigate potential duties and fees effectively.
Section 3. Implementation of Duty
- Directive Issued: The Secretary of Homeland Security is directed to implement necessary actions for the order.
- Consultation Required: This implementation must be done in consultation with:
- The Secretary of the Treasury
- The Attorney General
- The Secretary of Commerce
- Authorization: The Secretary of Homeland Security is authorized to:
- Adopt rules and regulations
- Employ powers granted by the International Emergency Economic Powers Act (IEEPA)
- Objective: These actions are essential to ensure compliance with Executive Order 14195.
Section 4. Homeland Security Authorities
Nothing in this order limits the ability of the Department of Homeland Security to use any available legal authorities granted to ensure compliance with the provisions of this order.
Section 5. Monitoring
- The Secretary of Commerce is tasked with submitting a report to the President within 90 days of the order.
- The report will assess the impact of the order on:
- American industries
- Consumers
- Supply chains
- It will include recommendations for further action as deemed necessary.
- One key recommendation may involve extending de minimis ineligibility to packages from Macau to prevent circumvention of the order.
- This report is crucial for understanding the broader implications of the order on the economy and trade practices.
Section 6. 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, 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.
(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.
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