On April 24, 2025, the U.S. Department of Homeland Security issued a notice regarding changes to the Harmonized Tariff Schedule of the United States (HTSUS) eliminating the Section 321 de minimis exemption for goods from China, which had previously permitted shipments valued at under $800 to be entered into the U.S. informally and duty-free.
The notice implemented Executive Order (“EO”) 14256 from April 2, 2025, which eliminated the de minimis exemption for products of China (including Hong Kong) and established new duty rates for international postal packages from these locations. Under the new EO, all goods from China sent to the United States through the international postal network from China or Hong Kong and valued at or under $800 – which, as noted above, would have otherwise previously qualified for the de minimis exemption – will now be subject to one of the following two duty rates as elected by the carrier:
(1) An ad valorem duty of 120% of the value of the postal item containing goods, entered for consumption on or after 12:01 am eastern daylight time on May 2, 2025; or
(2) A specific duty of $100 per postal item containing goods, entered for consumption on or after 12:01 am eastern daylight time on May 2, 2025, and before 12:01 am eastern daylight time on June 1, 2025.
For merchandise entered for consumption on or after 12:01 am eastern daylight time on June 1, 2025, the applicable specific duty will increase to $200 per postal item containing goods.
The rates of duty established by the EO are in addition to any other duties applicable to such imported articles, such as the reciprocal tariffs, and no drawback will be available for the ad valorem or specific duties assessed for de minimis shipments.
Products of China admitted into a United States foreign trade zone on or after 12:01 a.m. eastern time on February 4, 2025, must be admitted as “privileged foreign status” and will be subject to the normal rates of duty in effect at the time of admittance into the FTZ.
The notice also indicated that the $250 limit on informal entries for goods in Chapter 99 (an exception to the normal $2,500 informal entry limit) will be eliminated because it would impede U.S. Customs and Border Protection’s ability to effectuate the end of de minimis eligibility for Chinese goods.
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