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[Federal Register Volume 90, Number 23 (Wednesday, February 5, 2025)]
[Notices]
[Pages 9038-9040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02293]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

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: 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,'' which imposes 
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 has determined that appropriate action is needed to modify the 
Harmonized Tariff Schedule of the United States (HTSUS) as set out in 
the annex to this notice.

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or withdrawn from warehouse for consumption, on or after 12:01 a.m. 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 4, 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). 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 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 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.
    The 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, in 
order 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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[[Page 9039]]

    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, the February 1, 2025 Executive 
Order clarifies that duty-free de minimis treatment under 19 U.S.C. 
1321 shall not be available for the articles of China subject to the 
additional 10 percent ad valorem rate of duty. Accordingly, articles 
covered by heading 9903.01.20 shall not be eligible for the 
administrative exemption from duty and certain taxes at 19 U.S.C. 
1321(a)(2)(C)--the so-called ``de minimis'' exemption.
    In order to protect the revenue of the United States and 
effectively carry out the Executive Order's instruction to exclude such 
articles from eligibility for the de minimis exemption, including with 
respect to shipments arriving by international mail from China, CBP has 
determined that, in accordance with 19 CFR 145.12(a)(1), it is 
necessary to require formal entry for all mail shipments from China. 
Without regard to their value, no mail shipments from China will be 
cleared or released by CBP unless and until formal entry is properly 
filed.
    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.
    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 4, 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
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         Heading/ subheading                    Article description                                  1
                                                                             -------------------------------------------------             2
                                                                                      General                  Special
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``9903.01.20........................  Except for products described in        The duty provided in     The duty provided in    No change''.
                                       headings 9903.01.21, 9903.01.22, or     the applicable           the applicable
                                       9903.01.23 articles the product of      subheading + 10%.        subheading + 10%.
                                       China 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
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``9903.01.21........................  Articles the product of China and Hong  The duty provided in     The duty provided in    No change''.
                                       Kong that are donations, by persons     the applicable           the applicable
                                       subject 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:

[[Page 9040]]

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                                                                                                             Rates of duty
                                                                             ---------------------------------------------------------------------------
         Heading/ subheading                    Article description                                  1
                                                                             -------------------------------------------------             2
                                                                                      General                  Special
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``9903.01.22........................  Articles the product of China and Hong  The duty provided in     The duty provided in    No change''.
                                       Kong that are informational             the applicable           the applicable
                                       materials, including but not limited    subheading.              subheading.
                                       to, 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:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Rates of duty
                                                                             ---------------------------------------------------------------------------
         Heading/ subheading                    Article description                                  1
                                                                             -------------------------------------------------             2
                                                                                      General                  Special
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``9903.01.23........................  Except for products described in        The duty provided in     The duty provided in    No change''.
                                       headings 9903.01.21 and 9903.01.22,     the applicable           the applicable
                                       and other than products for personal    subheading.              subheading.
                                       use 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.
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    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 shall not be eligible for the administrative exemption 
from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)--the so-
called ``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. 2025-02293 Filed 2-3-25; 1:15 pm]
BILLING CODE 9111-14-P
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