Executive Order 14256: 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, issued on April 2, 2025, addresses the ongoing issue of illicit substances being hidden in shipments from the People's Republic of China (PRC) and Hong Kong, which often evade detection due to the de minimis exemption. It builds upon previous Executive Orders (14195, 14228, 14200) aimed at disrupting the synthetic opioid supply chain.
Purpose and De Minimis Exemption Elimination
- Problem Statement: Many shippers in the PRC utilize deceptive practices to conceal illicit substances in shipments to the United States, frequently exploiting the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) to avoid detection and duties.
- Previous Actions: Prior Executive Orders (14195, 14228, 14200) initiated and then temporarily suspended the elimination of duty-free de minimis treatment for certain articles from the PRC related to the synthetic opioid crisis.
- Reinstatement of Duty Collection: The Secretary of Commerce has confirmed that adequate systems are now in place to process and collect tariff revenue for covered goods.
- Key Directive: Effective 12:01 am eastern daylight time on May 2, 2025, duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) will no longer be available for products of the PRC (including Hong Kong) described in section 2(a) of Executive Order 14195 (as amended by Executive Order 14228). This applies to both general imports and international postal packages.
Assessment of Duties on Low-Value Products of the PRC
This section outlines the specific requirements for assessing and collecting duties on low-value imports from the PRC and Hong Kong that would otherwise qualify for de minimis exemption.
- Non-Postal Shipments (Valued at or under $800):
- Compliance Requirement: All shipments of covered articles from the PRC or Hong Kong, valued at or under $800, entered for consumption or withdrawn from warehouse on or after 12:01 am eastern daylight time on May 2, 2025, must be entered by a qualified party using an appropriate entry type in the Automated Commercial Environment (ACE) and pay all applicable duties.
- Agency Directives: Executive departments and agencies, including U.S. Customs and Border Protection (CBP), must take all necessary actions to effectuate this order, including potential temporary suspension or amendment of regulations. The United States International Trade Commission (USITC) will modify the Harmonized Tariff Schedule of the United States (HTSUS) as needed.
- International Postal Items (Valued at or under $800):
- Duty Imposition: Postal items containing covered goods from the PRC or Hong Kong, valued at or under $800 and otherwise de minimis eligible, will be subject to specific duties detailed below. These duties are imposed in lieu of other duties, including the 20 percent ad valorem duty from EO 14195, most-favored nation rates, and Section 301 duties.
- Carrier Responsibilities & Compliance: CBP is authorized to require carriers transporting these postal packages to remit duty payments monthly or on other periodic timeframes. Carriers must report to CBP the total number of postal items containing goods and, if electing the ad valorem duty, the value of each item, in a timeframe and manner prescribed by CBP. CBP may require electronic submission via ACE and supporting documentation.
- Duty Rates for International Postal Items:
- Carrier Choice: Transportation carriers must collect and remit duties using either an ad valorem or specific duty approach, applying the chosen methodology consistently to all shipments. Carriers may change their methodology once a month with 24-hour notice to CBP.
- Ad Valorem Duty: 30 percent of the value of the postal item, for merchandise entered for consumption on or after 12:01 am eastern daylight time on May 2, 2025.
- Specific Duty:
- $25 per postal item 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 per postal item for merchandise entered for consumption on or after 12:01 am eastern daylight time on June 1, 2025.
- Bond Requirement:
- Compliance Requirement: Any carrier transporting international postal items containing goods from the PRC or Hong Kong to the United States must possess an international carrier bond sufficient to ensure payment of the duties described in this order. CBP is authorized to ensure the sufficiency of these bonds.
- Discretion to Require Formal Entry: CBP retains the authority to require formal entry for any international postal package. If formal entry is required, the package will not be subject to the specific postal duties but will be subject to all other applicable duties, taxes, and fees.
Implementation and Homeland Security Authorities
- Implementation Directive: The Secretary of Homeland Security is directed to take all necessary actions to implement this order.
- Authority: The Secretary of Homeland Security, in consultation with the Secretaries of the Treasury and Commerce, and the Attorney General, is authorized to adopt rules and regulations and employ powers granted by the International Emergency Economic Powers Act (IEEPA) as needed for implementation.
- Existing Authorities: Nothing in this order limits the Department of Homeland Security's ability to use any available legal authorities to ensure compliance.
Monitoring and General Provisions
- Monitoring and Reporting: Within 90 days of April 2, 2025, the Secretary of Commerce, in consultation with the United States Trade Representative, must submit a report to the President.
- Report Content: The report will assess the order's impact on American industries, consumers, and supply chains, and include recommendations for further action, such as extending de minimis ineligibility to packages from Macau to prevent circumvention.
- General Provisions: The order clarifies that it does not impair existing agency authorities, will be implemented consistent with applicable law and appropriations, and does not create any private rights or benefits enforceable at law.