WHAT’S THE LATEST
President Trump has temporarily reinstated the eligibility of products made in China & Hong Kong for the de minimis exemption. The amendment to his Executive Order from February 1, 2025 states the de minimis exemption “shall cease to be available for such articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue applicable pursuant to subsection (a) of this section for covered articles otherwise eligible for de minimis treatment.”
We are currently monitoring for operational guidance from U.S. Customs and Border Protection on what this will mean during the interim period, as well as further clarity on what the mentioned “adequate systems” will look like.
The 10% tariff placed on products from China and Hong Kong remains in place.
WHAT’S NEXT?
It may take a little time for the disruption from the original announcement to clear, but with this amendment it is business as usual now. Companies should continue to evaluate mitigation strategies as we await further guidance and timelines, and stay close to their service provider to understand any delays which will occur for freight in motion. It would also be prudent for companies to prepare for a situation where de minimis does not exist.
If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.
