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April 02, 2025 Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports - Executive Order


Purpose of the Order

The Executive Order aims to combat the importation of synthetic opioids into the United States, particularly fentanyl and its precursors, by closing a loophole in the de minimis exemption that allows low-value shipments (under $800) from China (including Hong Kong) to enter the U.S. duty-free. It builds on earlier Executive Orders (14195, 14200, and 14228) to further regulate imports from the People’s Republic of China (PRC).


Key Authorities Cited

  • International Emergency Economic Powers Act (IEEPA)

  • National Emergencies Act

  • Section 604 of the Trade Act of 1974

  • Title 3, U.S. Code, Section 301


Background & Problem

  • The U.S. government has linked synthetic opioid trafficking to deceptive shipping practices by PRC-based entities.

  • Shippers exploit section 321(a)(2)(C) of the Tariff Act of 1930, which exempts goods valued at $800 or less from customs duties (known as the de minimis threshold).

  • These shipments often enter the U.S. without inspection or accurate content declarations, especially via international postal services.


Major Policy Changes (Effective May 2, 2025)

1. De Minimis Elimination for Certain Chinese Goods

  • Products of China and Hong Kong listed in section 2(a) of EO 14195 will no longer qualify for the duty-free $800 exemption.

  • Applies to all forms of shipping, including international postal network.

2. New Duty Requirements

  • General Low-Value Shipments

    • All such imports must be processed through formal entry using the Automated Commercial Environment (ACE) system.

    • All relevant tariffs (including those from EO 14195 and EO 14228) must be paid.

  • Postal Shipments from China and Hong Kong

    • Shipments valued at or under $800, previously exempt, are now subject to duties, replacing:

      • MFN (most-favored nation) rates

      • Section 301 tariffs

      • 20% ad valorem duty from previous executive orders

  • Duty Rate Options for Postal Carriers

Carriers transporting international postal shipments must choose one of two duty rate models:

Duty Model

May 2 – May 31, 2025

After June 1, 2025

Specific Duty

$25 per postal item

$50 per postal item

Ad Valorem

30% of item’s declared value

30% of item’s declared value

  • Carriers must remit payment monthly (or on a schedule set by U.S. Customs and Border Protection).

  • Carriers must also report all shipment values and counts via ACE.


Enforcement Provisions

  • Bonding Requirement: All carriers must hold an international carrier bond to guarantee duty payments.

  • CBP Discretion: Customs may require formal entry for any shipment, overriding flat-rate duties.


Monitoring & Reporting

  • Within 90 days, the Secretary of Commerce must submit a report evaluating:

    • Impacts on U.S. industries, consumers, and supply chains

    • Whether to extend de minimis ineligibility to Macau, to prevent trade circumvention


Legal Considerations

  • The order does not create enforceable legal rights for individuals.

  • It must be implemented in accordance with existing law and budgetary constraints.


Supporting Facts & Figures

Fact/Provision

Detail

Threshold impacted

Shipments ≤ $800

Duty-free exemption law

19 U.S.C. § 1321(a)(2)(C) (Tariff Act of 1930)

Geographic scope

People’s Republic of China and Hong Kong

Implementation date

May 2, 2025, at 12:01 a.m. EDT

Initial Specific Duty (May 2 – May 31)

$25 per package

Specific Duty (June 1 onward)

$50 per package

Ad Valorem Duty (from May 2 onward)

30% of package value

References to Prior Executive Orders

  • EO 14195 (Feb 1, 2025): Imposed duties on goods tied to synthetic opioid trafficking.

  • EO 14200 (Feb 5, 2025): Delayed de minimis revocation temporarily.

  • EO 14228 (Mar 3, 2025): Expanded covered goods subject to duties.


Implications

  • U.S. Customs and Border Protection (CBP) gains greater oversight and financial security (via bond and reporting).

  • May increase costs for consumers and small businesses that rely on low-value imports from China.

  • Designed to reduce illicit drug flow into the U.S. while maintaining international mail order stability.


Writer's Note: Summary made with the use of AI tools for editing and quick processing, facts checked against the order before publishing.


 
 
 

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