U.S. De Minimis Exemption Ends for China Low-Value Imports – Tariff Increases (Postal Items) Updated
Trade Update • April 10, 2025
n April 2, 2025, President Donald J. Trump signed an Executive Order ending duty-free de minimis treatment for low-value imports from the People’s Republic of China (PRC) and Hong Kong—part of a broader crackdown on trade loopholes exploited by Chinese chemical exporters and criminal networks.
What’s Affected
Effective May 2, 2025, at 12:01 a.m. EDT, the United States will no longer allow duty-free entry of qualifying shipments valued at or under $800 from China and Hong Kong. This change ends decades of de minimis treatment under Section 321(a)(2)(C) of the Tariff Act of 1930, which has allowed low-value imports to bypass regular customs duties.
De Minimis Tariff Increases (Postal Items)
To strengthen enforcement and maintain the intent of Executive Order 14257 (as modified April 8, 2025), the ad valorem rate of duty set in Section 2(c)(i) of Executive Order 14256 has been further increased. Originally raised from 30% to 90% as of April 2, 2025, the rate is now increased to 120% under the April 9, 2025 order. This duty targets low-value imports linked to the synthetic opioid supply chain from the People’s Republic of China.
Per-Item Duty (May 2 – June 1, 2025): Increased to $100
The per-item duty on postal shipments set in Section 2(c)(ii) of Executive Order 14256 (as modified by the April 8, 2025 update to EO 14257) has increased. Originally set to rise from $25 to $75 for the period beginning 12:01 a.m. EDT on May 2, 2025, the duty is now increased further to $100 per item. This applies to shipments entering the United States between May 2, 2025, and before 12:01 a.m. EDT on June 1, 2025.
Per-Item Duty (On or After June 1, 2025): Increased to $200
For postal items arriving on or after 12:01 a.m. EDT on June 1, 2025, when ad valorem is not assessed — was previously set to increase from $50 to $150 per-item postal duty. Under the updated April 10 order, that duty is now further increased to $200 per item.
Non-Postal Imports
Commercial couriers of non-postal imports will be subject to all applicable duties and must be entered through standard U.S. Customs and Border Protection (CBP) procedures using the Automated Commercial Environment (ACE) system.
Carriers
International postal shipments must:
- Report shipment data to CBP.
- Secure an international carrier bond.
- Collect and remit duties on a regular schedule determined by CBP.
- Apply one duty collection method consistently across all packages per month.
CBP may also require formal entry for any postal package at its discretion, in which case standard duties, taxes, and fees will apply.
Ensuring Enforcement and Monitoring
To ensure compliance with the new directives:
- Carriers must maintain proper international bonds.
- CBP is authorized to demand monthly duty remittance and verify shipment values.
- The Secretary of Homeland Security, in consultation with the Secretaries of Treasury and Commerce, and the Attorney General, is tasked with implementing and enforcing the order, including issuing regulations as needed.
- The Secretary of Commerce will submit a 90-day impact report evaluating how the order affects American industries, consumers, and trade logistics. The report will also determine whether Macau should be added to the list of restricted jurisdictions to prevent circumvention.
The National Foreign Trade Council has also warned that the costs of enforcing stricter de minimis rules could outweigh the revenue generated, potentially leading to broader clearance delays for other types of cargo as CBP shifts resources toward small package processing.
Addressing China’s Role in the Synthetic Opioid Crisis
The Executive Order specifically targets illicit practices by Chinese-based exporters who conceal synthetic opioids in low-value packages. According to U.S. officials, China’s Communist Party (CCP) has actively subsidized or incentivized the export of fentanyl and its precursors—chemicals that are contributing to an unprecedented wave of American drug overdoses.
- Over 4 million de minimis shipments enter the U.S. each day, many from China.
- In the last fiscal year, CBP seized 21,000 pounds of fentanyl, enough to kill over 4 billion people.
- An estimated 75,000 Americans die from fentanyl overdoses annually, more than the total U.S. military deaths in the Vietnam War.
- Chinese chemical companies often rely on fraudulent documentation, mislabeled packages, and false invoicing to evade detection.
- The U.S. has offered relatively lenient de minimis terms, while China imposes strict limits on U.S. imports under similar exemptions.
The information presented is general in nature, and is not intended to constitute legal advice with respect to any event or occurrence, and may not be considered as such. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information. Due to the complexity of Customs Regulations, valuations are based on information currently available and should not be considered binding, we recommend obtaining National Customs Rulings in areas of uncertainty.
How GHY Can Help
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
Please contact your Client Care Manager or our Global Trade Services Team gts@ghy.com, or call +1 (800) 667-0771.
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