Executive Order

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Suspending Duty-Free De Minimis Treatment for All Countries

AI Summary: This regulation is an Executive Order issued by the President that suspends duty-free de minimis treatment (a tax exemption for low-value imported goods) globally and for specific countries including Canada, Mexico, the People's Republic of China, and Hong Kong. The order establishes new duty collection requirements for international shipments, particularly those sent through the postal network. Specifically, the regulation mandates that most shipments will now be subject to duties, taxes, and fees regardless of value, with international postal shipments having special duty calculation methods. For postal shipments, carriers can choose between two duty assessment methods: an ad valorem (percentage-based) tariff rate or a fixed dollar amount per package based on the country of origin's effective tariff rate. The regulation is part of a series of executive orders addressing national security concerns related to drug trafficking and trade practices, and it will take effect on August 29, 2025. The order applies to goods entered for consumption and aims to ensure that tariffs are not evaded and that all imported goods are properly assessed for duties.