Executive Order Suspends De Minimis Exemption

President Trump signed an Executive Order on July 30 that will suspend the de minimis exemption for all countries, effective August 29. The White House has posted a fact sheet.

Key elements:

• For goods shipped through the international postal system, packages will instead be assessed duties according to one of the following methodologies:

  • Ad valorem duty: A duty equal to the effective tariff rate imposed under the International Emergency Economic Powers Act (IEEPA) that is applicable to the country of origin of the product. This duty shall be assessed on the value of each package.

  • Specific duty: A duty ranging from $80 per item to $200 per item, depending on the effective IEEPA tariff rate applicable to the country of origin of the product. The specific duty methodology will be available for six months, after which all applicable shipments must comply with the ad valorem duty methodology.  

The order is confusing, and shippers and their service providers have numerous questions, including precisely how duties will be remitted in the postal channel. IMAG members can expect regular updates.