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[Federal Register Volume 90, Number 28 (Wednesday, February 12, 2025)]
[Notices]
[Pages 9431-9434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02576]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

Amended Notice of Implementation of Additional Duties on Products 
of the People's Republic of China Pursuant to the President's February 
1, 2025 Executive Order Imposing Duties To Address the Synthetic Opioid 
Supply Chain in the People's Republic of China

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Amended notice.

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SUMMARY: In order to effectuate the President's February 1, 2025 
Executive order ``Imposing Duties to Address the Synthetic Opioid 
Supply Chain in the People's Republic of China,'' as amended by the 
President's February 5, 2025 Executive order ``Amendment to Duties 
Addressing the Synthetic Opioid Supply Chain in the People's Republic 
of China,'' which imposed specified rates of duty on imports of 
articles that are products of the People's Republic of China (PRC or 
China), the Secretary of Homeland Security is amending its February 5, 
2025 notice in the Federal Register, ``Implementation of Additional 
Duties on Products of the People's Republic of China Pursuant to the 
President's February 1, 2025 Executive Order Imposing Duties to Address 
the Synthetic Opioid Supply Chain in the People's Republic of China,'' 
to reflect that appropriate action was needed to modify the Harmonized 
Tariff Schedule of the United States (HTSUS) as set out in the Annex to 
this notice as well as changes to treatment of goods under what is 
commonly known as the de minimis exemption.

DATES: The duties set out in the Annex to this document are effective 
with respect to products of the PRC that are entered for consumption, 
or withdrawn from warehouse for consumption, on or after 12:01 a.m. 
eastern standard time on February 5, 2025.

FOR FURTHER INFORMATION CONTACT: Brandon Lord, Executive Director, 
Trade Policy and Programs, Office of Trade, U.S. Customs and Border 
Protection, (202) 325-6432 or by email at [email protected]. 
Susan Thomas, Executive Director, Cargo and Conveyance Security, Office 
of Field Operations, U.S. Customs and Border Protection, (202) 344-3401 
or by email at [email protected].

SUPPLEMENTARY INFORMATION: On January 20, 2025, the President declared 
a national emergency with respect to the grave threat to the United 
States posed by the influx of illegal aliens and drugs into the United 
States in Proclamation 10886 (Declaring a National Emergency at the 
Southern Border) (90 FR 8327 (January 29, 2025)). See National 
Emergencies Act (50 U.S.C. 1601 et seq.) (NEA).
    On February 1, 2025, the President expanded the scope of the 
national emergency declared in that proclamation to cover the failure 
of the People's Republic of China (PRC or China) government to arrest, 
seize, detain, or otherwise intercept, chemical precursor suppliers, 
money launderers, other transnational criminal organizations, criminals 
at large, and drugs. In addition, the President determined that this 
failure to act on the part of the PRC constitutes an unusual

[[Page 9432]]

and extraordinary threat, which has its source in substantial part 
outside the United States, to the national security, foreign policy, 
and economy of the United States. To address this threat, pursuant to 
the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) (IEEPA), the NEA, section 604 of the Trade Act of 1974, as 
amended (19 U.S.C. 2483), and 3 U.S.C. 301, the President imposed ad 
valorem tariffs on all imports that are products of the PRC, excluding 
those encompassed by 50 U.S.C. 1702(b). Specifically, the February 1, 
2025 Executive order (E.O. 14195) (90 FR 9121 (February 7, 2025)) 
adjusted duties on imported products of the PRC, by imposing, 
consistent with law, an additional 10 percent ad valorem rate of duty 
as described in the Annex to this notice.
    On February 5, 2025, the Secretary of Homeland Security issued a 
notice in the Federal Register (90 FR 9038), ``Implementation of 
Additional Duties on Products of the People's Republic of China 
Pursuant to the President's February 1, 2025 Executive Order Imposing 
Duties to Address the Synthetic Opioid Supply Chain in the People's 
Republic of China'' (hereinafter referred to as the ``China Duties 
Notice''), to reflect the appropriate action was needed to modify the 
Harmonized Tariff Schedule of the United States (HTSUS) as set out in 
the Annex to this notice. Subsequently, on February 5, 2025, the 
President amended subsection (g) of section 2 of the February 1, 2025 
Executive order, to modify the application of 19 U.S.C. 1321 to goods 
covered by subsection (a) of section 2 of the President's February 1, 
2025 Executive order. See ``Amendment to Duties Addressing the 
Synthetic Opioid Supply Chain in the People's Republic of China'' 
(February 5, 2025) (E.O. 14200). Specifically, as amended, subsection 
(g) of section 2 of the February 1, 2025 Executive order provides that 
duty-free de minimis treatment under 19 U.S.C. 1321 is available for 
otherwise eligible covered articles described in the Executive order, 
but shall cease to be available for such articles upon notification by 
the Secretary of Commerce, in consultation with the Secretary of the 
Treasury, to the President that adequate systems are in place to fully 
and expediently process and collect tariff revenue applicable pursuant 
to subsection (a) of section 2 of the Executive order for covered 
articles otherwise eligible for de minimis treatment.
    To effectuate the changes made by the February 5, 2025 Executive 
order, DHS is republishing its China Duties Notice in its entirety with 
changes to reflect both Executive orders.
    The February 1, 2025 Executive order directed the Secretary of 
Homeland Security, to determine and implement the necessary 
modifications to the Harmonized Tariff Schedule of the United States 
(HTSUS), consistent with law, to effectuate the Executive order.
    In order to implement the rates of duty imposed by the Executive 
order, effective on 12:01 a.m. eastern standard time on February 4, 
2025, subchapter III of chapter 99 of the HTSUS is modified by the 
Annex to this notice.
    Articles that are the products of China, which hereinafter will 
include products of Hong Kong in accordance with Executive Order 13936 
on Hong Kong Normalization (see 85 FR 43413 (July 17, 2020)), excluding 
those encompassed by 50 U.S.C. 1702(b), that are entered for 
consumption, or withdrawn from warehouse for consumption, on or after 
12:01 a.m. eastern standard time on February 4, 2025, will be subject 
to the additional ad valorem rate of duty provided for in new HTSUS 
heading 9903.01.20, except that goods entered for consumption, or 
withdrawn from warehouse for consumption, after 12:01 a.m. eastern 
standard time on February 4, 2025, that were loaded onto a vessel at 
the port of loading, or in transit on the final mode of transport prior 
to entry into the United States, before 12:01 a.m. eastern time on 
February 1, 2025, shall not be subject to such additional duty only if 
the importer certifies to CBP that the goods so qualify by declaring 
new HTSUS heading 9903.01.23 as described in the Annex to this notice. 
The exception for goods that were in transit before February 1, 2025, 
is time limited, to prevent importers from abusing this provision when 
it is no longer realistic due to the passage of time, as provided in 
new HTSUS heading 9903.01.23 that is described the Annex to this 
notice, and will only apply to goods entered for consumption, or 
withdrawn from warehouse for consumption, on or after 12:01 a.m. 
eastern standard time on February 4, 2025, and before 12:01 a.m. 
eastern standard time on March 7, 2025.
    Imported products of China that are encompassed by 50 U.S.C. 
1702(b) will not be subject to the additional ad valorem duty provided 
for in new HTSUS heading 9903.01.20, but such qualifying products, 
other than products for personal use included in accompanied baggage of 
persons arriving in the United States, must be declared and entered 
under new HTSUS heading 9903.01.21 or new HTSUS heading 9903.01.22. 
Specifically, new HTSUS heading 9903.01.21 covers products encompassed 
by 50 U.S.C. 1702(b)(2) and new HTSUS heading 9903.01.22 covers 
products encompassed by 50 U.S.C. 1702(b)(3).\1\
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    \1\ 50 U.S.C. 1702(b)(1) covers ``postal, telegraphic, 
telephonic, or other personal communication[s], which do [ ] not 
involve a transfer of anything of value,'' and hence does not 
encompass any imported articles of merchandise. 50 U.S.C. 1702(b)(4) 
covers ``transactions ordinarily incident to travel to or from any 
country, including [1] importation of accompanied baggage for 
personal use, [2] maintenance within any country including payment 
of living expenses and acquisition of goods or services for personal 
use, and [3] arrangement or facilitation of such travel including 
nonscheduled air, sea, or land voyages,'' only the first of which 
encompasses imported articles of merchandise.
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    The additional ad valorem duty provided for in new HTSUS heading 
9903.01.20 applies in addition to all other applicable duties, taxes, 
fees, exactions, and charges.
    Further, pursuant to the February 5, 2025 Executive order, the 
administrative exemption from duty and certain taxes at 19 U.S.C. 
1321(a)(2)(C)--known as the de minimis exemption--continues to be 
available for articles covered by heading 9903.01.20 that are otherwise 
eligible for the exemption, including for eligible articles sent to the 
United States through the international postal network, but shall cease 
to be available for such articles upon notification by the Secretary of 
Commerce, in consultation with the Secretary of the Treasury, to the 
President that adequate systems are in place to fully and expediently 
process and collect tariff revenue applicable to articles covered by 
heading 9903.01.20 otherwise eligible for the de minimis exemption. 
Accordingly, articles that are the product of China, including products 
of Hong Kong, that are eligible for the de minimis exemption and are 
covered by heading 9903.01.20 may continue to request de minimis entry 
and clearance until such time as the Secretary of Commerce, in 
consultation with the Secretary of the Treasury, so notifies the 
President and further guidance is provided.
    As of February 10, 2025, there will be no retroactive application 
of these changes for any shipments that would have otherwise qualified 
for de minimis treatment based on the February 5, 2025 Executive order 
``Amendment to Duties Addressing the Synthetic Opioid Supply Chain in 
the People's Republic of China.''
    Products of China that are eligible for temporary duty exemptions 
or reductions under subchapter II to chapter 99 shall be subject to the 
additional ad valorem rate of duty imposed by heading 9903.01.20.

[[Page 9433]]

    The additional duties imposed by heading 9903.01.20 shall not apply 
to goods for which entry is properly claimed under a provision of 
chapter 98 of the tariff schedule pursuant to applicable regulations of 
U.S. Customs and Border Protection (``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. For subheadings 9802.00.40, 9802.00.50, and 
9802.00.60, the additional duties apply to the value of repairs, 
alterations, or processing performed (in the PRC), as described in the 
applicable subheading. For heading 9802.00.80, the additional duties 
apply to the value of the article assembled abroad (in the PRC), less 
the cost or value of such products of the United States, as described.
    Articles that are products of the PRC, excluding those encompassed 
by 50 U.S.C. 1702(b), except those that are eligible for admission to a 
foreign trade zone under ``domestic status'' as defined in 19 CFR 
146.43, and are admitted into a United States foreign trade zone on or 
after 12:01 a.m. eastern standard time on February 4, 2025, must be 
admitted as ``privileged foreign status'' as defined in 19 CFR 146.41. 
Such articles will be subject, upon entry for consumption, to the 
duties imposed by the Executive order and the rates of duty related to 
the classification under the applicable HTSUS subheading in effect at 
the time of admission into the United States foreign trade zone.
    No drawback shall be available with respect to the additional 
duties imposed pursuant to the Executive order.

Kristi Noem,
Secretary.

Annex

To Modify Chapter 99 of the Harmonized Tariff Schedule of the United 
States

    Effective with respect to goods entered for consumption, or 
withdrawn from warehouse for consumption, on or after 12:01 a.m. 
eastern standard time on February 5, 2025, subchapter III of chapter 
99 of the Harmonized Tariff Schedule of the United States (HTSUS) is 
modified:
    1. by inserting the following new heading 9903.01.20 in 
numerical sequence, with the material in the new heading inserted in 
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article 
Description'', ``Rates of Duty 1-General'', ``Rates of Duty 1-
Special'' and ``Rates of Duty 2'', respectively:

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                                                                              Rates of duty
                                                        --------------------------------------------------------
  Heading/ subheading         Article description                         1
                                                        ------------------------------------          2
                                                              General           Special
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``9903.01.20..........  Except for products described    The duty          The duty          No change''.
                         in headings 9903.01.21,          provided in the   provided in the
                         9903.01.22, or 9903.01.23        applicable        applicable
                         articles the product of China    subheading +10%.  subheading +10%.
                         and Hong Kong, as provided for
                         in U.S. note 2(s) to this
                         subchapter.
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    2. by inserting the following new heading 9903.01.21 in 
numerical sequence, with the material in the new heading inserted in 
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article 
Description'', ``Rates of Duty 1-General'', ``Rates of Duty 1-
Special'' and ``Rates of Duty 2'', respectively:

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                                                                              Rates of duty
                                                        --------------------------------------------------------
  Heading/ subheading         Article description                         1
                                                        ------------------------------------          2
                                                              General           Special
----------------------------------------------------------------------------------------------------------------
``9903.01.21..........  Articles the product of China    The duty          The duty          No change''.
                         and Hong Kong that are           provided in the   provided in the
                         donations, by persons subject    applicable        applicable
                         to the jurisdiction of the       subheading.       subheading.
                         United States, of articles,
                         such as food, clothing, and
                         medicine, intended to be used
                         to relieve human suffering, as
                         provided for in U.S. note 2(t)
                         to this subchapter.
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    3. by inserting the following new heading 9903.01.22 in 
numerical sequence, with the material in the new heading inserted in 
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article 
Description'', ``Rates of Duty 1-General'', ``Rates of Duty 1-
Special'' and ``Rates of Duty 2'', respectively:

----------------------------------------------------------------------------------------------------------------
                                                                              Rates of duty
                                                        --------------------------------------------------------
  Heading/ subheading         Article description                         1
                                                        ------------------------------------          2
                                                              General           Special
----------------------------------------------------------------------------------------------------------------
``9903.01.22..........  Articles the product of China    The duty          The duty          No change''.
                         and Hong Kong that are           provided in the   provided in the
                         informational materials,         applicable        applicable
                         including but not limited to,    subheading.       subheading.
                         publications, films, posters,
                         phonograph records,
                         photographs, microfilms,
                         microfiche, tapes, compact
                         disks, CD ROMs, artworks, and
                         news wire feeds.
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    4. by inserting the following new heading 9903.01.23 in 
numerical sequence, with the material in the new heading inserted in 
the columns of the HTSUS labeled ``Heading/Subheading'', ``Article 
Description'', ``Rates of Duty 1-General'', ``Rates of Duty 1-
Special'' and ``Rates of Duty 2'', respectively:

[[Page 9434]]

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                                                                              Rates of duty
                                                        --------------------------------------------------------
  Heading/ subheading         Article description                         1
                                                        ------------------------------------          2
                                                              General           Special
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``9903.01.23..........  Except for products described    The duty          The duty          No change''.
                         in headings 9903.01.21 and       provided in the   provided in the
                         9903.01.22, and other than       applicable        applicable
                         products for personal use        subheading.       subheading.
                         included in accompanied
                         baggage of persons arriving in
                         the United States, articles
                         the product of China and Hong
                         Kong that: (1) were loaded
                         onto a vessel at the port of
                         loading, or in transit on the
                         final mode of transport prior
                         to entry into the United
                         States, before 12:01 a.m.
                         eastern standard time on
                         February 1, 2025; and (2) are
                         entered for consumption, or
                         withdrawn from warehouse for
                         consumption, on or after 12:01
                         a.m. eastern standard time on
                         February 4, 2025, and before
                         12:01 a.m. eastern standard
                         time on March 7, 2025.
----------------------------------------------------------------------------------------------------------------

    5. by inserting the following new U.S. note 2(s) to subchapter 
III of chapter 99 of the HTSUS in numerical sequence:
    ``2. (s) For the purposes of heading 9903.01.20, products of 
China and Hong Kong, other than products described in heading 
9903.01.21, heading 9903.01.22, heading 9903.01.23, and other than 
products for personal use included in accompanied baggage of persons 
arriving in the United States, shall be subject to an additional 10% 
ad valorem rate of duty. Notwithstanding U.S. note 1 to this 
subchapter, all products of China and Hong Kong that are subject to 
the additional ad valorem rate of duty imposed by heading 9903.01.20 
shall also be subject to the general rates of duty imposed on 
products of China and Hong Kong entered under subheadings in 
chapters 1 to 97 of the tariff schedule. Products of China and Hong 
Kong that are eligible for temporary duty exemptions or reductions 
under subchapter II to chapter 99 shall be subject to the additional 
ad valorem rate of duty imposed by heading 9903.01.20.
    The additional duties imposed by heading 9903.01.20 shall not 
apply to goods for which entry is properly claimed under a provision 
of chapter 98 of the tariff schedule pursuant to applicable 
regulations of U.S. Customs and Border Protection (``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. For subheadings 
9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply 
to the value of repairs, alterations, or processing performed (in 
China and Hong Kong), as described in the applicable subheading. For 
heading 9802.00.80, the additional duties apply to the value of the 
article assembled abroad (in China and Hong Kong), less the cost or 
value of such products of the United States, as described.
    Products of China and Hong Kong that are provided for in heading 
9903.01.20 shall continue to be subject to antidumping, 
countervailing, or other duties, taxes, fees, exactions and charges 
that apply to such products, as well as to the additional ad valorem 
rate of duty imposed by heading 9903.01.20.
    Products of China and Hong Kong that are provided for in heading 
9903.01.20 and that are otherwise eligible for the administrative 
exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)--
known as ``de minimis'' exemption--may continue to qualify for the 
exemption, but the de minimis exemption shall cease to be available 
for such articles upon notification by the Secretary of Commerce, in 
consultation with the Secretary of the Treasury, to the President 
that adequate systems are in place to fully and expediently process 
and collect tariff revenue applicable for covered articles otherwise 
eligible for the de minimis exemption.
    (t) Heading 9903.01.21 covers only products of China and Hong 
Kong, that are donations, by persons subject to the jurisdiction of 
the United States, of articles, such as food, clothing, and 
medicine, intended to be used to relieve human suffering, except to 
the extent that the President determines that such donations (A) 
would seriously impair his ability to deal with any national 
emergency declared under section 1701 of title 19 of the U.S. Code, 
(B) are in response to coercion against the proposed recipient or 
donor, or (C) would endanger Armed Forces of the United States which 
are engaged in hostilities or are in a situation where imminent 
involvement in hostilities is clearly indicated by the 
circumstances.''

[FR Doc. 2025-02576 Filed 2-10-25; 11:15 am]
BILLING CODE 9111-14-P
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