Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border

Mar 6, 2025

Summary

Changes a rule to let small, low-value packages cross the northern border without taxes until a system is ready to collect them.

What problem does this solve?

The government wants to tax all items from the northern border to fight drug trafficking, but it's not ready to collect taxes on small packages. This order temporarily allows small packages to enter tax-free until the collection systems are working.

Who does this affect?

Importers and exporters
Online shoppers
U.S. customs officials

What does this order do?

Allows temporary tax-free status for small packages

Permits low-value items, known as 'de minimis' shipments, to enter from the northern border without paying a tax, changing a previous rule.

Sets condition to end tax exemption

States the tax-free treatment for small packages will stop when the Secretary of Commerce tells the President that systems are ready to collect the taxes.

What is the real world impact?

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Provides a practical delay for a new tax

Temporarily pauses taxes on small packages from the northern border because the government's systems are not yet ready to collect them, avoiding major shipping delays.

When does this start?

This order becomes effective immediately on March 2, 2025, but includes a future change.

End of tax-free treatment for small packages

The tax exemption will end on a future date when the Secretary of Commerce confirms that systems are in place to collect the required taxes.