Executive Order 14324: Suspending Duty-Free De Minimis Treatment for All Countries
This Executive Order (EO), issued on July 30, 2025, leverages authorities under the International Emergency Economic Powers Act (IEEPA) and other statutes to suspend duty-free de minimis treatment for imports from all countries. It aims to address various national emergencies and prevent the evasion of existing tariffs.
Background and Rationale (Section 1)
- Basis for Action: The EO builds upon several prior Executive Orders from February and April 2025, which declared national emergencies concerning:
- Illicit drug flows across the Northern (Canada, EO 14193) and Southern (Mexico, EO 14194) borders.
- The synthetic opioid supply chain originating from the People's Republic of China (PRC) and Hong Kong (EO 14195).
- Large and persistent annual U.S. goods trade deficits (EO 14257).
- Secretary of Commerce Notification: Previous EOs had either initially suspended duty-free de minimis treatment or paused such suspensions, contingent on the Secretary of Commerce notifying the President that adequate systems were in place to process and collect duties. The Secretary has now provided this global notification, confirming systems are in place.
- Presidential Determination: The President determines it is necessary and appropriate to suspend duty-free de minimis treatment for Canadian, Mexican, and PRC/Hong Kong goods, and on a global basis, to address the respective national emergencies and ensure the effectiveness of existing tariffs. Each determination is independent and specific to its declared emergency.
Suspension of Duty-Free De Minimis Treatment (Section 2)
- General Suspension: The duty-free de minimis exemption provided under 19 U.S.C. 1321(a)(2)(C) is suspended for all shipments of articles not covered by 50 U.S.C. 1702(b), irrespective of value, country of origin, mode of transportation, or method of entry.
- Applicable Charges: All such shipments, except those sent through the international postal network, will now be subject to all applicable duties, taxes, fees, exactions, and charges.
- Compliance Requirement - Entry Filing: For non-postal shipments that previously qualified for de minimis exemption, entry must now be filed using an appropriate entry type in the Automated Commercial Environment (ACE) by a qualified party.
- International Postal Shipments: Shipments sent through the international postal network that would otherwise qualify for de minimis exemption will pass free of duties except those specified in Section 3, and without U.S. Customs and Border Protection (CBP) entry preparation, until CBP establishes and publishes a new entry process.
Duty Rates for International Postal Shipments (Section 3)
- Collection Responsibility: Transportation carriers delivering international postal shipments to the U.S., or other qualified parties, must collect and remit duties to CBP. Carriers must apply a consistent methodology across all covered shipments during any given period but may change it monthly with 24 hours' notice to CBP.
- Ad Valorem Duty Methodology: A duty equal to the effective IEEPA tariff rate applicable to the country of origin will be assessed on the value of each dutiable postal item.
- Specific Duty Methodology (Temporary Option): An alternative specific duty per package based on the effective IEEPA tariff rate of the country of origin: $80 per item (for rates <16%), $160 per item (for rates 16-25% inclusive), or $200 per item (for rates >25%). This specific duty option is available for 6 months from the effective date of this order, after which all postal shipments must use the ad valorem methodology.
- Compliance Requirement - Country of Origin: For both methodologies, the country of origin of the article must be declared to CBP.
- Antidumping/Countervailing Duties/Quota: Shipments subject to antidumping/countervailing duties or quotas must continue to be entered under an appropriate entry type in ACE as required by applicable regulations.
Implementation and Compliance (Section 4)
- Effective Date: The requirements and procedures established by Sections 2 and 3 are effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.
- Supersession: This order supersedes Section 2 of Executive Order 14256, as amended, for goods entered or withdrawn on or after the effective date.
- DHS Directives and Authority: The Secretary of Homeland Security (DHS) is directed and authorized to take all necessary actions to implement this order, including temporary suspension or amendment of regulations, issuing Federal Register notices, adopting rules/guidance, and employing IEEPA powers. DHS, in consultation with the United States International Trade Commission (ITC), may make necessary modifications to the Harmonized Tariff Schedule of the United States (HTSUS).
- Compliance Requirements - Bonds: