Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China as Applied to Low-Value Imports
1. Purpose
This order aims to impose new duties on imports from the People's Republic of China (PRC) to combat deceptive shipping practices that contribute to the synthetic opioid crisis.
2. Key Actions And Directives
- Impose new duties on low-value shipments: Shipments valued at or under $800 from the PRC or Hong Kong will now be subject to duties regardless of the previous duty-free de minimis exemption.
- End of duty-free exemption: The duty-free de minimis exemption will cease for products from the PRC effective May 2, 2025.
- Set new duty rates for postal items: Implement a 30% ad valorem duty on postal items, or a specific duty of $25 per item pre-June 1, 2025, and $50 per item post-June 1, 2025.
- Ensure payment of duties by carriers: Carriers must maintain an international carrier bond to ensure the payment of duties on international postal items from the PRC.
- Require formal entry for postal packages: U.S. Customs and Border Protection (CBP) may mandate formal entry for any international postal package, subjecting it to applicable duties, taxes, and fees.
- Assess impact on American industries: The Secretary of Commerce, with the Trade Representative, will evaluate and report on the order's impact within 90 days.
3. Important Points
- Legal Authority for Action: The President exercises authority under the International Emergency Economic Powers Act, National Emergencies Act, and Trade Act of 1974 to implement these duties.
- Addressing Illicit Trade: This order specifically targets deceptive shipping practices in the PRC to reduce the inflow of illicit substances contributing to the opioid crisis.
- Transition Period for New Duties: Current duty-free allowances will phase out, ensuring a smooth transition to the new duty structure before implementation on May 2, 2025.
- Exemption and Entry Regulation: While postal packages may be subjected to entry requirements, they are not exempt from applicable duties under formal entry regulations.
- Non-Enforceable Rights: The order clarifies that it does not create any enforceable rights or benefits against the U.S. or its entities.
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