Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border
Revises an existing executive order on Canadian import tariffs to restore duty-free de minimis treatment — the threshold under which low-value packages enter without customs duties — for goods subject to the Canada tariff regime, until the Commerce Department certifies that collection systems are ready.
What this order does
What it orders
The order amends Executive Order 14193 (as previously amended by EO 14197) by rewriting section 2(h) to make duty-free de minimis treatment under 19 U.S.C. 1321 available for low-value covered articles subject to the Canada tariffs. In other words, packages that fall below the de minimis threshold can still enter duty-free for now, rather than being subject to the tariffs already in effect.
This exemption is not permanent. It ends automatically once the Secretary of Commerce formally notifies the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue on these otherwise de minimis-eligible shipments. The order includes standard general provisions stating it does not create enforceable rights or alter existing agency authorities.
Who it affects
Importers, e-commerce businesses, and consumers receiving low-value shipments from Canada that qualify for de minimis customs treatment. The Department of Commerce is directly directed to assess system readiness and trigger the end of the exemption.
Why it matters
Online shoppers and small importers receiving low-value packages from Canada avoid immediate tariff charges while federal customs processing systems catch up. Once Commerce certifies readiness, those same shipments become subject to the existing Canada tariffs, potentially raising costs for consumers and small businesses.
What must happen and when
How the order is supposed to work
De minimis treatment takes effect immediately for covered Canadian articles. It does not expire on a fixed date — instead, it terminates the moment the Secretary of Commerce sends a formal notification to the President that tariff collection systems can fully handle the processing volume. There is no deadline by which Commerce must make that determination, so the duration of the exemption is open-ended and depends entirely on administrative readiness.
Actions and deadlines
- Secretary of Commerce must notify the President when adequate tariff collection systems are in place to end de minimis exemption
Agencies directed to act
Authority and reach
What this order changes
Amends Executive Order 14193