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De Minimus Update
Jack LaMadeleine • February 5, 2025
The recent guidance from U.S. Customs and Border Protection (CBP) regarding de minimis shipments from China is a significant update. Here's a quick breakdown of the key points in the alert:
New Executive Order (EO):
- The EO signed by President Trump on February 1, 2025, imposed an additional 10% tariff on U.S. imports from China. This affects the de minimis exemption for Chinese shipments, which previously allowed for low-value shipments to enter without paying duties.
Effective Date:
- The guidance took effect at 12:01 a.m. ET on February 4, 2025.
Impact on De Minimis Shipments:
- Most products from China (including Hong Kong) no longer qualify for the administrative exemption under 19 U.S.C. § 1321(a)(2)(C).
- Shipments from China that were previously eligible for de minimis treatment will now be subject to the 10% additional ad valorem duties.
- Any requests for de minimis entry and clearance for ineligible shipments will be rejected.
Actions Required by Importers:
- If a shipment was already filed as a de minimis entry, but it arrives after the cutoff time, it will no longer qualify.
- Filers will need to take action to clear the shipment under the new rules, including potentially paying applicable duties, taxes, and fees through a formal or informal entry.
- Pre-arrival clearances for affected shipments will be canceled after the cutoff time (12:01 a.m. ET on February 4).
CBP Guidance:
- The trade community is advised to closely monitor the shipments and messages from CBP.
- New technical guidance will be provided via CSMS as needed.
ACE System Updates:
- Changes in the Automated Commercial Environment (ACE) system are available in the Certification Environment starting at 5:30 p.m. ET on February 3, and will be accessible in the Production Environment following a maintenance outage.
Effective at 12:01 a.m. on April 5, 2025, a 10% baseline tariff on imported goods from most countries, with a few exceptions, will be implemented. This baseline is in addition to regular duties and fees, current IEPPA duties, Section 201 duties, Section 301 duties, and any applicable AD/CVD.
As of 12:01am, March 4, 2025, tariffs of 25% are effective on products from Canada and Mexico and energy products from Canada are subject to a 10% duty. Products that are presently excluded from these tariffs include goods that are for personal use, goods entered under Chapter 98, donations that are imported under HTSUS 9903.01.21and merely information items included under HTSUS 9903.01.22. All other imported items will carry the 25% tariff and no drawback is permitted on these duties.
The upcoming changes to steel and aluminum tariffs will significantly impact the steel and aluminum industries, with numerous provisions to ensure compliance. Importers, exporters, and manufacturers in the steel and aluminum sectors should stay informed about the latest developments and ensure their operations are aligned with these new tariff regulations.
On February 1, 2025, President Trump signed an Executive Order (EO) that imposes an additional 10% ad valorem tariff on most imports from China, which includes products of Hong Kong. U.S. Customs and Border Protection (CBP) quickly followed up with important guidance regarding these changes, particularly impacting the trade community's handling of de minimis shipments from China. Effective February 4, 2025, de minimis shipments from China will no longer be eligible for the administrative exemption from duty under 19 U.S.C. § 1321(a)(2)(C), and will be subject to the new 10% tariffs. Here's everything you need to know about the changes:
International Tariff Management's February Newsletter
On January 20, 2025, President Donald Trump was sworn in for his second term, and with that came big promises regarding trade policy. But a significant shift came just days later, on January 21, when Trump announced plans to impose 25% tariffs on Mexico and Canada—set to go into effect on February 1, 2025. This move represents a dramatic change in North American trade relations and could have wide-reaching effects on American consumers. At a signing ceremony in the Oval Office, Trump revealed that his administration would roll out tariffs on goods from two of the U.S.'s largest trading partners, Mexico and Canada. However, this new tariff decision doesn’t fully align with the aggressive trade strategy Trump promised during his campaign. The sweeping tariffs Trump pledged on his first day in office, including a 25% tariff on Mexico and Canada, have yet to materialize. His executive action, while still outlining a broad trade policy overhaul, serves more as a placeholder for a more extensive, long-term plan.
Although the United States and Taiwan (officially known as the Republic of China) do not maintain formal diplomatic relations, the two countries share strong cooperation in several areas, including trade. Trade discussions are managed through the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the U.S., under an arrangement called the U.S.-Taiwan Initiative on 21st Century Trade. This framework allows both nations to address trade and investment issues, while working toward mutual priorities over time.
As of January 1, 2025, new tariff rates on certain Chinese imports will go into effect, as part of the ongoing Section 301 investigation into China's trade practices, particularly regarding technology transfer, intellectual property, and innovation. The United States Trade Representative (USTR) has announced additional tariff increases under the Section 301 Four Year Review, which impacts a range of products, including certain tungsten products, solar wafers, and polysilicon. If you're involved in importing these products or handling customs filings, it’s crucial to understand the latest developments and the steps required to comply with the updated regulations.
Our team is excited to be back for another year of maximizing refunds and providing exceptional service for our partners!
In his recent article, "Why China Welcomes Trump’s Energy Tariffs", energy and geo-economics expert Wesley Alexander Hill provides an intriguing take on how U.S. tariffs, especially those targeting energy products, might inadvertently benefit China rather than harm it, as intended by former President Donald Trump.
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