On Monday, April 28, 2025, U.S. Customs and Border Protection (CBP) published a public notice providing additional information regarding the elimination of the de minimis exception for goods being imported from China and Hong Kong. This notice, titled “Notice of Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s 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,” implements changes directed by President Trump’s Executive Order 14256 and subsequent amendments. These changes specifically apply to products of the People’s Republic of China (PRC), which the order specifies includes products of Hong Kong.

The action follows the Secretary of Commerce Howard Lutnick notifying President Trump that adequate systems were in place to process and collect tariff revenue on previously de minimis eligible goods. The initial context for related Executive Orders involved a national emergency declared regarding the influx of illegal aliens and drugs, expanded to cover the PRC government’s failure to act on chemical precursor suppliers and related criminal activity.

Key Changes Regarding the De Minimis Exemption for Shipments from China and Hong Kong:

For products of the PRC and Hong Kong, the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) is no longer available for certain articles. This change is effective for articles entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 2, 2025.

This means shipments of covered articles from the PRC or Hong Kong that are valued at or under $800 and would have previously qualified for de minimis are now subject to new requirements:

• For shipments other than those sent through the international postal network: These shipments must now be entered under an appropriate entry type (e.g., Type 01 or 11) in CBP’s Automated Commercial Environment (ACE) by a qualified party. All applicable duties, including those imposed by Executive Order 14195 as amended, must be paid in accordance with entry and payment procedures. Shipments already ineligible for the de minimis exemption, such as merchandise subject to antidumping or countervailing duties or quota, must continue to be entered under an appropriate entry type in ACE consistent with all applicable requirements.
  
• For international postal items containing covered goods sent through the international postal network from the PRC or Hong Kong (valued at or under $800, previously de minimis): These items shall be subject to one of the following two duty rates, as elected by the carrier:
  
  1. Ad Valorem Duty: 120 percent of the value of the postal item containing goods. This rate is effective for merchandise entered for consumption on or after 12:01 a.m. eastern daylight time on May 2, 2025.
     
  2. Specific Duty: $100 per postal item containing goods. This rate is effective for merchandise entered for consumption on or after 12:01 a.m. eastern daylight time on May 2, 2025, and before 12:01 a.m. eastern daylight time on June 1, 2025. For merchandise entered for consumption on or after 12:01 a.m. eastern daylight time on June 1, 2025, the applicable specific duty increases to $200 per postal item containing goods.

These duties on postal items are to be collected by carriers delivering international mail shipments to the United States from the PRC or Hong Kong. The carrier must apply the same methodology (ad valorem or specific duty) to all shipments they deliver but may change it monthly upon providing 24 hours advance notice to CBP. Carriers must remit the collected duties to CBP on a monthly basis or as otherwise determined by CBP. Carriers are required to have an international carrier bond to ensure that duties are remitted. Carriers must report to CBP the total number of postal items containing goods, and if electing the ad valorem rate, the value of each item, in a timeframe and manner prescribed by CBP. Documentation and information may be required to verify reported data.

The duty collected by a carrier for these specific postal items is in lieu of any other duties the shipments would otherwise be subject to. Generally, these international postal items will pass free of other duties by CBP and without preparation of a mail entry by CBP. However, CBP may require formal entry in accordance with existing regulations for any international postal package. An international postal package for which CBP requires formal entry will not be subject to the new high duty rates but will be subject to all applicable duties, taxes, and fees in accordance with all applicable laws.

Regulatory and HTSUS Modifications:

The CBP notice also temporarily suspends or amends certain CBP regulatory provisions that are inconsistent with the directives in Executive Order 14256, as amended. These suspended or amended regulations include, but may not be limited to:

• 19 CFR 145.12(b) (pertaining to CBP’s preparation of informal mail entry).
• 19 CFR 145.31 (pertaining to mail importations not over $800 in value).
• The parenthetical exception clause in 19 CFR 143.21(a) (pertaining to articles valued in excess of $250 classified in Chapter 99, Subchapters III and IV, HTSUS).
• Any provision of CBP regulations, other than with respect to mail, that permits filers to file entries with CBP for articles valued at or under $800 that would otherwise qualify for the de minimis exemption, other than through ACE.

The Harmonized Tariff Schedule of the United States (HTSUS) is also modified to reflect that products of the PRC and Hong Kong are not eligible for the administrative exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)—known as the “de minimis” exemption. Specific subdivisions and headings within Chapter 99 are updated to reflect these changes, including adding new subdivision (w) to U.S. note 2 and modifying U.S. note 2(u), heading 9903.01.24, and heading 9903.01.63.