Continuing The Suspension Of Duty-Free De Minimis Treatment For All Countries
Summary
This executive order continues the suspension of duty-free de minimis treatment for all countries, meaning that certain low-value shipments entering the United States will continue to be subject to duties. This action amends Executive Order 14324 and is based on the President's determination that national emergencies declared in previous executive orders (14193, 14194, 14195, and 14257) still require this measure. The order directs U.S. Customs and Border Protection (CBP) to collect duties on shipments, especially those sent through the international postal network.
Expected Effects
The immediate effect will be that consumers and businesses importing goods into the US will likely face higher costs due to the imposed duties. This could lead to increased prices for consumers and potentially affect the competitiveness of businesses that rely on low-cost imports. The order also revises the processes for duty collection, particularly for international postal shipments.
Potential Benefits
- Increased revenue for the U.S. government through collected duties.
- Potentially leveling the playing field for domestic businesses that compete with imports.
- Addressing national security concerns related to illicit goods and unfair trade practices.
- Encouraging more accurate valuation and declaration of imported goods.
- May disincentivize the flow of illicit goods by increasing their cost.
Potential Disadvantages
- Increased costs for consumers due to duties on low-value goods.
- Potential disruptions to supply chains and increased costs for businesses that rely on de minimis shipments.
- Could disproportionately affect smaller businesses and individuals who rely on affordable imports.
- Possible retaliatory measures from other countries, impacting international trade relations.
- Increased administrative burden for CBP and transportation carriers.
Constitutional Alignment
The order cites the President's authority under the Constitution and laws, including the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act. These acts grant the President broad powers to address national emergencies that threaten national security, foreign policy, or the economy. The constitutionality rests on the interpretation and scope of these delegated powers, particularly concerning trade and foreign affairs, which are generally within the purview of the executive branch. However, the indefinite continuation of emergency measures could raise questions about the separation of powers, as legislative authority over trade is vested in Congress (Article I, Section 8).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).