Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border
Signed: March 2, 2025
Published: March 6, 2025
Document Number: 2025-03728
đSummary
This executive order changes an earlier order that imposed duties on certain goods tied to efforts to curb illicit drug flows across the U.S.âCanada border. It affects importers, shippers, and consumers bringing in âcovered articlesâ that would normally qualify for the duty-free low-value (âde minimisâ) import exception. For now, those covered low-value shipments can still enter duty-free if they otherwise qualify, but that duty-free treatment will end once the Secretary of Commerce tells the President that systems are ready to quickly process these shipments and collect the required tariff revenue. It also states that agencies must carry this out within existing legal authority and available funding, and it does not create new enforceable rights for private parties.
đźBusiness Impact
This order most directly affects crossâborder eâcommerce, parcel carriers/3PLs, customs brokers, and U.S. importers/retailers sourcing âcovered articlesâ from Canada that currently rely on the $800 de minimis (19 U.S.C. 1321) dutyâfree entry to keep landed costs low. It preserves de minimis for now, but creates a clear trigger: once Commerce notifies the President that systems can rapidly assess and collect tariffs on these lowâvalue shipments, de minimis treatment for the covered articles can be shut offâraising perâpackage costs, slowing clearance, and increasing administrative burden. Compliance requirements/opportunities: businesses should be prepared for a shift from simplified de minimis processing to full tariff collection, meaning tighter product classification (HTS), countryâofâorigin substantiation, valuation documentation, and broker/ACE data readiness at high shipment volumes. Thereâs also an opportunity for firms with strong customs infrastructure (brokers, compliance software, 3PLs) to win share by offering âde minimis-to-dutyâ transition services, consolidated entry programs, and automated classification/valuation workflows. Immediate actions: (1) identify whether your SKUs are âcovered
Full Text
Executive Order 14226 of March 2, 2025
Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
Section 1 . Amendment.Executive Order 14193 of February 1, 2025 (Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border), as amended by Executive Order 14197 of February 3, 2025 (Progress on the Situation at Our Northern Border), is further amended by revising section 2(h) to read as follows:
”(h) Duty-free de minimis treatment under 19 U.S.C. 1321 is available for otherwise eligible covered articles described in subsection (a) and subsection (b) of this section. Such duty free de minimis treatment shall cease to be available for such otherwise eligible covered articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable pursuant to subsection (a) and subsection (b) of this section for covered articles otherwise eligible for de minimis treatment.”
Sec. 2 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 11370)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 2, 2025.