Executive Order 14324
“Suspending Duty-Free De Minimis Treatment on $800 Shipments for All Countries”
·
Executive
Order: EO
14324, signed 30 July 2025.
·
Effective
Date: 29 August 2025.
·
Provision
Impacted: 19 U.S.C. § 1321(a)(2)(C)
(de minimis duty-free entry).
·
De
minimis duty-free treatment suspended
for all countries.
·
Applies
to shipments entering the
US, including those via international
mail.
·
Exception:
Shipments covered under 50
U.S.C. § 1702(b) remain eligible.
·
Transportation
carriers
(airlines, shipping companies, couriers).
·
International
mail operators.
·
Customs
brokers & qualified parties
handling low-value shipments.
·
Exporters
& e-commerce platforms
relying on small-value duty-free entry.
1.
Declaration
Requirements:
o All shipments, regardless of value, must now
be declared for customs duty purposes.
2.
Data
Reporting:
o Carriers must provide complete electronic
data sets for all consignments.
3.
Duties
& Fees:
o Customs duties applicable on all imports
unless exempted by other statutes.
4.
Operational
Adjustments:
o Review IT systems for automated duty assessment.
o Update billing and customer communication
processes to reflect duty liability.
·
For
Businesses:
o Loss of de minimis exemption →
higher import costs for low-value e-commerce and retail shipments.
o Possible slowdown in cross-border small parcel trade.
·
For US
Customs (CBP):
o Higher administrative burden.
o Greater duty collection potential.
·
For
Consumers:
o Imported small packages (previously
duty-free) now subject to duty, possibly raising retail prices.
Summary:
EO
14324 eliminates the longstanding
duty-free allowance for low-value imports into the US. From 29 August 2025, all shipments—regardless of value—must
pay customs duties unless otherwise exempted. Carriers and mail
operators must comply with new reporting and duty-assessment requirements.
Guidance
Pursuant
to the EO 14324 of July 30, 2025, (“Suspending Duty-Free De Minimis Treatment for
All Countries”), effective August 29, 2025, de minimis duty-free treatment
under 19 U.S.C. § 1321(a)(2)(C) will no longer be available for shipments
entering into the United States not covered by 50 U.S.C. § 1702(b), including
those entering through international mail.
The
attached guidance provides detailed instructions for transportation carriers
and qualified parties on how to comply with the requirements for international
mail.