US bans de minimis use on imports from China

On April 9, 2025 President Trump issued a new Executive Order making modifications to his tariff policy, including the ban on de minimis shipments for imports from China. These changes went into effect at 12:01 AM on April 10.

The changes announced are as follows:

On April 2, 2025, Executive Order 14256 was released to address the issue of synthetic opioids being imported into the United States from the People's Republic of China (PRC), including Hong Kong. It amends previous orders to impose duties on low-value imports to combat the synthetic opioid crisis. The executive order (EO) means low-value goods shipped through commercial supply chains will be subject to all applicable duties imposed on Chinese products, including the new 34% tariff under the latest reciprocal tariff policy announced on April 2, 2025.

The Secretary of Commerce will evaluate the impact of the new de minimis rule within 90 days and determine whether to extend it to packages from Macau as well. The de minimis exemption remains in place for other countries, but that could change once it has been determined that US Customs and Border Protection (CBP) is set up to process and collect the tariff revenues globally.

The EO aims to address the concealment of illicit substances that play a significant role in the synthetic opioid crisis in the United States, in shipments from the PRC by eliminating duty-free de minimis treatment for products.

Products from the PRC or Hong Kong valued at or under $800, moving through commercial chains, previously eligible for duty-free treatment, will now be subject to duties if entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on May 2, 2025. This means the goods will be subject to all duties imposed on Chinese products, including the new 34% tariff under the latest reciprocal tariffs. The 34% tariff layers on top of a 20% tariff imposed on all Chinese goods earlier this year, as well as any Section 301, Section 232, and other preexisting baseline tariffs.

The goods must be entered by a party qualified to make entry under another appropriate entry type in the Automated Commercial Environment (ACE) operated by U.S. CBP with applicable duties paid.

Postal items containing goods from the PRC or Hong Kong valued at or under $800 will also be subject to specific duties. The EO places the responsibility for collecting and transmitting postal import fees on carriers. CBP has the discretion to require a formal entry for any postal package instead of the specified duties, which would subject it to all applicable duties, fees, and taxes.

Effective on 12:01am EDT on May 2, 2025, carriers can apply an ad valorem duty rate of either 30% of the value or $25 per item. If using the $25 per item rate, the rate will increase to $50 per item after June 1, 2025.

Carriers must remit payments to U.S. CBP and report all shipment details. Additionally, carriers must have an international carrier bond to ensure duty payment.

Transportation carriers must apply the same duty collection methodology to all shipments; however, transportation carriers may change their collection methodology once a month or on such other periodic timeframe as CBP determines appropriate, upon providing 24-hour notice to CBP.

It is highly unusual to make the carrier responsible for the right to make entry and collection of duties (like an Importer of Record). Carriers typically do not have the level of detailed data required meet the regulatory requirements.

The volume of shipments imported into the U.S. claiming the de minimis exemption has grown dramatically over the past decade. Based on CBP metrics, de minimis shipments have grown to 1.4 billion per year. The total value of all imports claiming the exemption in fiscal year 2024 was $64.6 billion. The vast majority of de minimis imports to the U.S. come from China. Other countries, such as the European Union, are also considering removing the de minimis exemption.

To learn more about how the ONESOURCE Global Trade suite of tools and services can help businesses analyze potential impacts, explore alternative sourcing options, and optimize their trade operations to mitigate risks and capitalize on potential advantages, please contact your Account Manager or Customer Success Manager.