Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports
Summary
This executive order amends previous orders to address the synthetic opioid supply chain originating from the People's Republic of China (PRC), including Hong Kong. It targets low-value imports, specifically those that have been exploiting the de minimis exemption (under $800) to avoid duties. The order aims to close loopholes that allow illicit substances to enter the United States undetected through deceptive shipping practices.
Expected Effects
The order will eliminate duty-free de minimis treatment for specific goods from the PRC and Hong Kong, effective May 2, 2025. This means increased costs for importers of these goods, as they will now be subject to applicable duties. Transportation carriers delivering shipments through the international postal network will be required to collect and remit duties to U.S. Customs and Border Protection (CBP), with options for ad valorem or specific duty rates.
Potential Benefits
- Reduced flow of synthetic opioids into the United States, potentially saving lives.
- Increased revenue for the U.S. government through collected duties.
- More stringent monitoring and reporting requirements for international postal packages.
- Greater accountability for transportation carriers involved in delivering goods from the PRC and Hong Kong.
- Incentive for shippers in the PRC and Hong Kong to adopt more transparent shipping practices.
Potential Disadvantages
- Increased costs for American consumers who purchase goods from the PRC and Hong Kong.
- Potential disruptions to supply chains and increased administrative burden for businesses.
- Possible retaliatory measures from the PRC, impacting trade relations.
- Increased burden on CBP to process and monitor imports.
- Potential for circumvention of the order through other means.
Most Disadvantaged Areas:
Constitutional Alignment
The order cites the President's authority under the Constitution and laws, including the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974. These acts delegate powers to the President to address national emergencies and regulate international trade. The order's focus on national security and public safety aligns with the government's responsibility to protect its citizens. However, the potential impact on individual consumers and businesses raises questions about economic fairness and due process, although these are not explicitly addressed in the Constitution.
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).