E.O. 14324: Suspend De Minimis

Summary

Ends the practice of allowing low-value shipments to enter the U.S. without paying taxes, requiring all imports to be subject to duties.

What problem does this solve?

Low-value shipments were entering the country tax-free, which some believe helped illegal drug trafficking and created unfair trade. This order removes the tax-free status for all small shipments to better control imports and collect taxes.

Who does this affect?

Consumers who purchase goods online from other countries
Importers and small businesses
International shipping and postal carriers

What does this order do?

Ends tax-free status for small imports

Removes the duty-free 'de minimis' exemption for all shipments, meaning all imported goods will now be subject to taxes and fees, regardless of their value.

Creates new duty rates for postal shipments

Sets new rules for collecting taxes on items sent through the mail. Carriers can choose between a rate based on the product's value or a flat fee per package depending on the country's tariff rate.

Requires formal entry for all shipments

All shipments, except those sent by international mail, must now be formally declared using the Automated Commercial Environment (ACE) system by a qualified party.

Imposes new bond requirements

Customs and Border Protection (CBP) can now require bonds for small shipments and for international mail carriers to make sure all new duties are paid.

Sets a 6-month limit on specific postal duty

The option for postal carriers to pay a flat fee per package instead of a percentage of the value will only be available for six months after the order takes effect.

What is the real world impact?

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Increases costs for consumers and small businesses

By removing the tax-free status for small packages, this order will likely raise prices for consumers who buy imported goods online. It also adds new costs and paperwork for small businesses that rely on these imports.

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Aims to curb illicit drug trafficking

The order is justified as a way to fight national emergencies, including the flow of fentanyl and other illegal drugs. By inspecting and taxing all packages, the government hopes to better track and stop dangerous shipments.

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Protects American industries from foreign competition

This policy makes imported goods more expensive, which can help American companies compete. It addresses concerns about large trade deficits by making it harder for foreign goods to enter the U.S. market cheaply.

When does this start?

The new rules take effect on August 29, 2025, with some specific timelines for postal carriers.

Suspension of duty-free treatment

All new requirements for duties on low-value shipments begin at 12:01 a.m. eastern daylight time on August 29, 2025.

Alternative postal duty methodology

For six months starting August 29, 2025, postal carriers can use a specific flat-fee duty system before they must switch to a value-based system.