On April 18, U.S. Customs and Border Protection (CBP) issued preliminary guidance in implementation of Executive Order 14256, as amended by Executive Orders 14259 and 14266, which is removing Chinese-origin goods (including goods from Hong Kong) from eligibility for tariff-free treatment for shipments of under $800 USD in value. The EO, which will go into effect at midnight on May 2, will significantly impact many low-value shipments that in recent years have increased from China and other countries.

The CBP guidance (CSMS # 64792502) states that the vast majority of Chinese-origin goods are no longer eligible for the de minimis exemption from tariffs. This includes packages sent through the international postal network from China or Hong Kong. All regular shipments will be rejected if they attempt to claim a de minimis exemption and must instead be entered through conventional CBP filing procedures and are subject to all applicable duties, taxes, and fees.

CBP has not yet issued detailed guidance on the handling of shipments sent through the international postal network (such as USPS). But the preliminary guidance stated that shipments from China or Hong Kong of China-origin goods valued at $800 or less will be subject to a tariff of 120% of the value of the shipment or a specific duty of $100 per shipment (to increase to $200 per shipment on June 1). The guidance leaves several issues unresolved. For example, it does not address the tariff for shipments of Chinese-origin goods sent through international postal networks from countries other than China/Hong Kong. It also does not clarify whether the lesser or greater of the two charges (a fixed fee or 120% tariff) will be assessed on such shipments. However, CBP stated that it will be issuing additional guidance on the Federal Register and CBP messaging system in advance of the implementation date.