De Minimis Exception Eliminated For Chinese Goods
On April 2, 2025 President Trump signed an executive order finally eliminating de minimis duty free treatment on goods from China, ending a long saga of regulatory changes.
Beginning on February 1, 2025, President Trump signed Executive Order 14195 titled “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China.” In addition to imposing an additional duty on goods from China, Executive Order 14195 eliminated de minimis duty free treatment under 321(a)(2)(C) of the Tariff Act of 1930 for qualifying goods under $800. At the time, procedures for collecting duties on de minimis goods from China did not exist, which led to confusion and delays. For that reason, on February 5, 2025, Executive Order 14200 suspended the elimination of the de minimis exception until further notice.
Since then, the Secretary of Commerce has established the requisite procedures to collect duties on de minimis goods. Therefore, the April 2 Executive Order (the “EO”) reinstates the elimination of the de minimis exception with the following guidelines.
First, all products of China sent from China through the international postal network that would otherwise qualify as de minimis will be subject to the tariffs in the EO. The duties on these postal items will be in lieu of other duties and tariffs, including Section 301, the general duty rate, and the 20% Fentanyl Tariff, meaning that only the tariff in the EO will apply. Postal carriers are required to collect the duties and remit them to CBP. There are two prescribed methods for collection:
- 30% ad valorem duty on each postal item containing goods;
- $25 flat duty on each postal item containing goods (until June 1, 2025, at which point the flat duty will increase to $50 per item).
Both the 30% ad valorem duty, as well as the $25 flat duty come into effect on or after 12:01 a.m. on May 2, 2025. In addition, carriers will be required to maintain a bond sufficient to ensure payment of these duties.
Second, all other products of China will be subject to the 20% Fentanyl Tariff, regardless of whether they are valued at less than $800. The duty will apply beginning on or after 12:01 a.m. on May 2, 2025.
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into how these changes could affect your operations, we invite you to contact us to schedule a consultation.