U.S. Axes Duty-Free Perk on Tiny Imports to Fight Drugs
Published Date: 8/5/2025
Presidential Document
Summary
Starting now, the U.S. is suspending the duty-free rule for small shipments from all countries to fight drug trafficking and protect public safety. This means importers will have to pay duties on all packages, no matter how small, until further notice. The change kicks in immediately and aims to help stop illegal drugs from crossing our borders, which could also impact costs for businesses and shoppers.
Analyzed Economic Effects
6 provisions identified: 0 benefits, 5 costs, 1 mixed.
De Minimis Duty-Free Rule Suspended
Starting August 29, 2025 at 12:01 a.m. EDT, the duty-free de minimis exemption under 19 U.S.C. 1321(a)(2)(C) no longer applies for any shipment not covered by 50 U.S.C. 1702(b). Except for international postal shipments, all such shipments will be subject to applicable duties, taxes, fees, exactions, and charges and must be entered using an appropriate entry type in the Automated Commercial Environment (ACE).
New Postal Package Duty Options
For international postal network shipments, carriers must collect and remit duties using one of two methods: (1) an ad valorem duty equal to the effective IEEPA tariff rate on the package value, or (2) a specific per-package duty for a temporary 6‑month period: $80 per item if the effective IEEPA rate is less than 16%; $160 per item if the rate is between 16% and 25% (inclusive); and $200 per item if the rate is above 25%. Carriers must declare country of origin to CBP.
Six-Month Specific-Duty Transition Window
The specific per-package duty schedule ($80/$160/$200) for international postal shipments is available for 6 months from the order's effective date (starting August 29, 2025). After that 6-month period, all postal shipments must comply with the ad valorem duty methodology (effective IEEPA tariff rate on value).
Entry Bonds and Carrier Bond Requirements
CBP is authorized to require a basic importation and entry bond for informal entries valued at or less than $2,500. Any carrier that transports international postal shipments to the United States must have an international carrier bond as described in 19 CFR 113.64 to ensure payment of the duties described in the order.
Temporary Postal Entry Process and Notification Rule
Until CBP establishes and publishes a new entry process in the Federal Register, international postal shipments will be processed without preparation of an ACE entry but remain subject to the duty rates in section 3. Separately, duty-free de minimis treatment for postal shipments will remain available only until the Secretary notifies the President that adequate systems are in place to process and collect duties for postal shipments, after which duty-free treatment for postal shipments will no longer be available.
Carrier Collection Rules and Method Change Limits
Transportation carriers delivering shipments through the international postal network (or qualified parties in lieu of carriers) must collect and remit duties to CBP using either the ad valorem or specific-duty methodology; each carrier must apply the same methodology across covered shipments during a given period and may change its methodology no more than once per calendar month (or on another CBP-approved schedule) with at least 24 hours' notice to CBP.
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