ST&R Trade Advisory: Transitioning Away from De Minimis After 12:01 a.m. ET on Aug. 29

The suspension of de minimis is now implemented, starting at 12:01 a.m. ET on Aug. 29. NCBFAA Customs Counsel, Sandler, Travis & Rosenberg, P.A., provides this brief update on the transition away from de minimis.

What Happened to De Minimis on Midnight Aug. 29?

Per Executive Oder (EO) “Suspending Duty-Free De Minimis Treatment for All Countries,” issued on July 30, 2025, goods of all countries entering the U.S. will no longer be eligible for the administrative exemption from duty and certain tax at 19 U.S.C. § 1321(a)(2)(C) effective 12:01 a.m. ET on Aug. 29. This means that all goods not identified in 50 U.S.C. 1702(b) may not receive “de minimis” clearance to enter duty and tax free regardless of their value, country of origin, mode of transportation, or method of entry.

What Will CBP do to Halt Future De Minimis Shipments?

As of Aug. 29, Customs and Border Protection (CBP) will reject requests for de minimis entry and clearance for ineligible shipments. Specifically, CBP is taking the following steps:

• ACE will reject all Section 321 manifest filings submitted via electronic data interchange (EDI).
• The option to file Section 321 manifests in the Truck Manifest Trade Portal will be removed.
• ACE will reject all entry type 86 cargo release EDI transactions.

What Will CBP Require Beginning Aug. 29?

As of Aug. 29, filers will be required to submit a formal or informal entry type electronically in ACE (paper entries are not permitted) consistent with legal and regulatory requirements. Except for shipments sent through the international postal network, payment of ALL applicable duties, taxes, and fees will be required.

How Will Postal De Minimis Work?

For shipments through the international postal network that previously qualified for the de minimis exemption, no entry will be prepared until CBP establishes a new process to be published in a Federal Register notice on Sept. 2. For all such postal shipments, the transportation carriers delivering the shipments to the U.S., or other qualified parties acting in place of such transportation carriers, must collect and remit duties to CBP based on one of two methodologies. CBP will NOT prepare entries for such postal shipments.

What are the Payment Methods for Postal?

Postal shipments will be subject to IEEPA tariffs, which can be assessed using one of two methods:

1. Ad valorem duty: A duty equal to the effective IEEPA tariff for the country of origin of the product, based on the value of the product.
2. Specific duty: A flat 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.

What is Meant by the “Effective IEEPA Tariff Rate?”

Per CBP’s recently released FAWs as used in EO 14324, the term “effective IEEPA tariff rate” refers to the total duty rate imposed on an article pursuant to all applicable Chapter 99 headings in the HTSUS corresponding to a duty imposed to address a national emergency under IEEPA. Note: this does not require all duties, taxes, and fees as is the case for the informal or formal entry process.

How Does the Specific Duty Rate Alternative Apply?

Per the EO, as further explained in CBP’s Global Guidance for International Mail, the specific duty rates will apply like this:

• Countries with an effective IEEPA tariff rate of less than 16 percent: $80 per

item;

• Countries with an effective IEEPA tariff rate between 16 and 25 percent

(inclusive): $160 per item; and

• Countries with an effective IEEPA rate above 25 percent: $200 per item.

CBP explains this only will be an option for six (6) months, at which time the ad valorem methodology will be required for postal.

Are Duties/Tariffs Now Owed on Bona Fide Gifts?

Per CBP’s recently released FAQs duty-free de minimis treatment is still available for bona fide gifts as defined in 19 C.F.R § 10.153(a) – articles formerly owned by a donor who gave it outright in its entirety to a donee without compensation or promise of compensation. It does not include articles acquired by purchase, barter, promissory exchange, or similar transaction, nor does it include articles said to be “given” in conjunction with a purchase, barter, promissory exchange, or similar transaction, such as a so-called bonus article.

Where Can I Find More Details?

Detailed guidance on shipments entering via international mail can be found at:

• CSMS # 65934463 – GUIDANCE: Payment of Duty on International Mail Shipments pursuant to Executive Order 14324 “Suspending Duty-Free De Minimis Treatment for All Countries”
• For a list of Qualified Parties visit: E-Commerce | U.S. Customs and Border Protection
• The Federal Register Notice detailing the De Minimis Suspension is found at: FRN De Minimis Suspension

Has CBP Issued Updated FAQs Regarding the De Minimis Suspension?

CBP Guidance on Additional Duties on Imports from India

Customs and Border Protection (CBP) on Aug. 25 provided guidance to the trade regarding the additional duties on imports from India, as result of the Aug. 6 Executive Order (EO) 14329, “Addressing Threats to the United States by the Government of the Russian Federation.”

Guidance

Application of Additional Duty Rates

For articles that are the product of India, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Aug. 27, 2025, the following the HTSUS classification and additional duty rate apply under heading 9903.01.84:

All imports of articles that are products of India, other than products classifiable under headings 9900.01.85 – 9900.01.89 and other than products for personal use included in accompanied baggage of persons arriving in the U.S., will be subject to an additional ad valorem rate of 25%.

The duty rate specified in heading 9903.01.84, HTSUS, applies in addition to the additional duty on articles of India imposed by EO 14257, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits,” as amended, as well as all other applicable duties (including antidumping and countervailing duties), taxes, fees, exactions, and charges, applicable to such imports.

Exemptions

The following HTSUS headings apply to products that are exempted from the additional ad valorem duties imposed by the Aug. 6 EO “Addressing Threats to the United States by the Government of the Russian Federation”:

9903.01.85: Articles the products of India that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the U.S., before 12:01 a.m. ET on Aug. 27, 2025; and (2) are entered for consumption or withdrawn from warehouse for consumption before 12:01 a.m. ET on Sept. 17.

9903.01.86: Articles the product of India, identified in Annex II of Executive Order 14257, as amended by Presidential Memorandum, “Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as amended” issued April 11, 2025.

9903.01.87: Articles of iron or steel, derivative articles of iron or steel, articles of aluminum, derivative articles of aluminum, passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks and parts of passenger vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans) and light trucks, and semi-finished copper and intensive copper derivative products, of India, as provided in subdivision (z)(iii) through (z)(ix) of note 2 to this subchapter. Specifically, the additional duties imposed by heading 9903.01.84 do not apply for such products that are provided for in headings 9903.81.87 through 9903.81.93, inclusive, and headings 9903.85.02, 9903.85.04, 9903.85.07, 9903.85.08, 9903.85.09, 9903.94.01, 9903.94.03, 9903.94.05, and 9903.78.01.

9903.01.88: Articles the product of India that are donations, by persons subject to the jurisdiction of the U.S., of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, provided that the President has not made the determination for an exception from this exemption as provided in subdivision (z)(x) of note 2 to subchapter III.

9903.01.89:  Articles the product of India that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.

Chapter 98

The additional duties imposed by heading 9903.01.84, HTSUS will not apply to goods for which entry is properly claimed under a provision of Chapter 98 of the HTSUS pursuant to applicable regulations issued by CBP, and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60, HTSUS. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, HTSUS, the additional duties apply to the value of repairs, alterations, or processing performed (in India), as described in the applicable subheading.  For heading 9802.00.80, HTSUS, the additional duties apply to the value of the article assembled abroad (in India), less the cost or value of such products of the U.S., as described.

Foreign Trade Zone

Articles that are products of India, subject to the ad valorem duty imposed in section 2 of Executive Order 14329, except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 C.F.R. § 146.43, and are admitted into a U.S. foreign trade zone on or after 12:01 a.m. ET on Aug. 27 must be admitted as “privileged foreign status” as defined in 19 C.F.R. § 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by this order and the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admission into the U.S. foreign trade zone.

Drawback

Drawback is available with respect to the additional duties imposed pursuant to the Aug. 6 EO “Addressing Threats to the United States by the Government of the Russian Federation”.

HTS Sequence

When submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise, the following instructions will apply for the order of reporting the HTS on an entry summary line.

1. Chapter 98 (if applicable)
2. Chapter 99 number(s) for additional duties (if applicable)
3. For trade remedies,
   • First report the Chapter 99 HTS for Section 301,
   • Followed by the Chapter 99 HTS for IEEPA,
   • Followed by the Chapter 99 HTS for Section 232,
   • Followed by the Chapter 99 HTS for 201 duties (if applicable),
   • Followed by the Chapter 99 HTS for Section 201 quota (if applicable).
4. Chapter 99 number(s) for REPLACEMENT duty or other use (i.e., MTB or other provisions)
5. Chapter 99 number for other quota (not covered by #3) (if applicable)
6. Chapter 1 to 97 Commodity Tariff

The entered value of the imported product reported on the entry summary line should be reported on the Chapter 1-97 HTS classification, unless Chapter 98 reporting provisions require the entered value to be reported differently.

Harmonized System Update 2533 Includes Indian Product Duties

Customs and Border Protection (CBP) said a Harmonized System Update (HSU) 2533 was created on Aug. 25 which contains six Harmonized Tariff Records and 18 ABI records. HSU 2533 includes Additional Duties on Products of India Pursuant to the President’s Executive Order 14329, effective Aug. 27.

EU proposes tariff reductions to implement EU-U.S. deal

The European Commission on Aug. 28 announced two proposals paving the way for the implementation of the EU-U.S. Joint Statement of Aug. 21. These proposals are the first steps in said implementation and ensure tariff relief by the U.S. for the vital EU automotive sector starting retroactively from Aug. 1.

The first step concerns a proposal to eliminate tariffs on U.S. industrial goods and provide preferential market access for a range of U.S. seafood and non-sensitive agricultural goods, while the second step proposes to prolong the tariff-free treatment of lobster, now including processed lobster.

“The Commission will continue to engage with the US to lower tariffs, including in the context of negotiations on a future EU-US Agreement on Reciprocal, Fair, and Balanced Trade,” the European Commission said in a statement.

Going forward, the Commission proposals constitute the necessary legislative step to enact the EU’s tariff reductions set forth in Section 1 of the EU-U.S. Joint Statement. The Parliament and Council will now have to approve the two proposals under the ordinary legislative procedure before the EU’s tariff reductions can enter into force.

In line with Section 3 of the EU-U.S. Joint Statement, the U.S. is expected to implement the agreed 15% US tariff ceiling to EU cars and car parts, the Commission said.

These tariff reductions from 27.5% to 15% are expected to be effective from the first day of the same month in which the EU’s legislative proposals are introduced, Aug. 1. “This will save car makers more than €500 million in duties that would have otherwise been paid for exports in one month only,” the Commission said.

The U.S. also committed to zero or near to zero tariffs on certain product categories for which only the most-favored nation (MFN) tariff will apply, starting on Sept. 1 (unavailable natural resources, including cork, all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors). Both sides have agreed to work on expanding this list further.

On Aug. 21, the EU and the U.S. issued a Joint Statement on transatlantic trade and investment. This Joint Statement confirms and builds on the political agreement reached by President von der Leyen and President Trump on July 27.

The Commission said the EU legislative proposal “covers all the commitments taken by the EU in Section 1 of the EU-US Joint Statement and demonstrates our joint willingness to continue cooperating towards restoring stability and predictability in EU-U.S. trade and investment.”

Trump Administration Proposes Import Tariffs for Countries with Digital Service Taxes

President Trump on Monday, Aug. 25, said he would impose tariffs on exports to the U.S. from countries which impose restrictive digital services regulations or taxes on American tech companies. Members of the European Union have indicated that they might implement digital services regulations on the tech industry.

“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips,” Trump said in a Truth Social post..

The Canadian government in June rescinded its imposition of a digital services tax which helped rekindled trade talks between the U.S. and Canada.

Additional IEEPA Tariff Resources

Reciprocal Tariffs CSMS Guide

The NCBFAA Customs Committee also continues to monitor Customs and Border Protection (CBP) FAQs pertaining to IEEPA tariff actions and provides these useful CBP webpages where you can find answers to your particular questions:

Section 301 FAQs

Section 232 FAQs

Quota FAQs

International Emergency Economic Powers Act (IEEPA) FAQs

IEEPA Reciprocal Tariff Reference Document (for informational purposes only)

EO 14257 Tariffs Sequence and Annexes

IEEPA Tariff Background

President Trump on Saturday, Feb. 1, issued Executive Orders, under the authority of the International Emergency Economic Powers Act (IEEPA), to impose at midnight starting Feb. 4, 25% tariffs on imports from Canada (except energy products tariffed at 10%) and Mexico, and an additional 10% on imports from China. President Trump delayed the imposition of those tariffs, except for China, to March 4, after discussions with the leaders of Mexico and Canada. By Friday, Feb. 7, the President issued an amendment to his original executive order that allows Chinese goods to use de minimis until such time as the Department of Commerce notifies the President that “adequate systems are in place to fully and expediently process and collect tariff revenue applicable.”

On Feb. 10, President Trump announced 25% tariffs on certain steel and aluminum imports entering the U.S. Those tariffs took effect on March 12. The 25% duty rate applies to previously covered steel and aluminum products and derivatives including those produced in the previously excluded countries and on the new derivatives listed in the recently published steel and aluminum Annexes.

This tariff announcement was followed on Feb. 13 by President Trump’s announcement that the White House will commence a comprehensive investigation to determine “the equivalent of a reciprocal tariff with respect to each foreign trading partner” on other countries with existing tariffs on U.S. goods. The Office of the U.S. Trade Representative (USTR) on Feb. 20 announced that it seeks comments from the public regarding reciprocal tariffs, which are due by March 11.

On March 6, the President amended his IEEPA tariffs of 25% on Mexico and Canada. The effective date is 12:01 a.m. ET, March 7. Any Mexican or Canadian origin goods that qualify for free entry under the USMCA will not be subject to the additional 25% duties. In addition, potash from either country that does not qualify for duty free treatment under the USMCA will be subject to a 10% duty (in lieu of the 25% duty).

The White House Executive Order issued April 2 stated that all articles imported into the U.S. will be subject to an additional ad valorem rate of duty of 10 percent. The rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on April 5, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. ET on April 5 and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. ET on April 5 shall not be subject to such additional duty. President Trump on April 2 also signed an Executive Order to eliminate duty-free de minimis treatment for low-value imports from China, effective May 2 at 12:01 a.m. ET. On April 9, however, President Trump issued a 90-day pause on the reciprocal tariffs and lowered them to 10%.

President Trump on April 29 issued an Executive Order that most notably relieves automakers whose cars and light trucks are assembled in the U.S. from potentially facing stacked tariffs for auto part imports. The auto parts import tariffs were scheduled to take effect at 12:01 a.m. ET on May 3.

The U.S. and Chinese governments after meeting in Geneva, Switzerland, over the weekend of May 10-11 on Monday, May 12,  announced a joint plan to begin deescalating tariffs, starting May 14. The statement said that both governments will be “moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect,” following the imposition of significant tariffs on each other’s products. The Trump Administration, which called the agreement an “historic trade win for the United States,” outlined in this May 12 fact sheet what both countries will do, while continuing negotiations over the next 90 days.

President Trump issued a proclamation ensuring that tariffs on aluminum and steel will increase from 25% ad valorem to 50% ad valorem effective 12:01 a.m. ET on June 4.

The Trump Administration on July 2 reached a trade deal with Vietnam in which goods imported into the U.S. will be subject to a 25% tariff and a 40% tariff if transshipped, while U.S. goods exported to Vietnam will be admitted with zero tariffs.

President Trump on July 7 authorized letters to be sent to numerous countries, stating that if suitable trade agreements are not reached by Aug. 1, then they will be subject to additional tariffs. The White House letters follow President Trump’s Executive Order issued April 2 which stated that articles imported into the U.S. from numerous countries will be subject to an additional tariff. On April 9, however, President Trump issued a 90-day pause, or July 9, on the tariffs. President Trump on July 9 Truth Social also said he will impose a 50% tariff on copper imports into the U.S. on Aug. 1 to stimulate domestic production.

The Trump Administration on July 15 reached a trade deal with Indonesia. The country has committed to purchasing $15 billion in U.S. energy products, as well as $4.5 billion in U.S. agricultural products and a commitment to buy 50 Boeing aircraft. Indonesian products entering the U.S. will be subject to a 19% tariff, and if these products are transshipped from a higher tariff country, then that tariff will be added to the tariff which Indonesia is paying.

Since mid-July 2025, the Trump Administrations announced trade deals with the European Union, South Korea, Japan, Thailand, Cambodia, the Philippines, and Pakistan in the run up to the Aug. 1 deadline for the reciprocal tariffs to take effect.

At 12:01 a.m. ET on Aug. 7, U.S. reciprocal tariff on numerous countries became effective. At the same time, a 25% additional tariff was imposed on Indian product imports into the U.S. on top of the 25% reciprocal tariff for India’s continued importation of Russian oil.

U.S. tariffs which were set to take effect on China produced goods at 12:01 a.m. ET, Aug. 12, have been delayed by President Trump through an Executive Order for another 90 days, so that both the U.S. and China have more time to finalize a trade deal.

Effective 12:01 a.m. ET, Aug. 18, in accordance with “Adoption and Procedures of the Section 232 Steel and Aluminum Tariff Inclusions Process” the Commerce Department began adding additional aluminum derivative products to Annex I of the HTSUS to be subject to Section 232 duties. On Aug. 21, the U.S. and European Union agreed to a Framework on an Agreement on Reciprocal, Fair, and Balanced Trade, and Canada agreed to remove tariffs on certain U.S. goods imports by Sept. 1, as trade negotiations between the two countries continue.