Executive Order Summary: Continuing Suspension of Duty-Free De Minimis Treatment For All Countries
Below is a summary of the Presidential Executive Order, Continuing Suspension of Duty-Free De Minimis Treatment For All Countries issued on February 20, 2026.
To review the De Minimis Executive Order in full, please click on the link below.
Section 1: Background
Overview
- President continues suspension of duty-free treatment for small-value imports (de minimis) from all countries through international postal network and other shipping methods
- U.S. Customs and Border Protection (CBP) will collect duties on previously exempt shipments to address ongoing national emergencies
- Multiple previous Executive Orders established national emergencies related to:
- Illicit drug flow across northern border (Executive Order 14193)
- Southern border situation (Executive Order 14194)
- Synthetic opioid supply chain from China (Executive Order 14195)
- Trade deficit issues requiring reciprocal tariffs (Executive Order 14257)
- Original suspension implemented in July 2025 through Executive Order 14324 to address these security and economic threats
- De minimis exemption previously allowed small-value shipments to enter duty-free under standard trade regulations
Current Developments
- Secretary of Commerce confirmed adequate systems now exist to process and collect duties on postal network shipments
- Conditions outlined in previous Executive Order have occurred, triggering this continuation order
- Senior officials provided additional information and recommendations supporting continued suspension
Implementation Details
- CBP will collect duties on international postal network shipments that would normally qualify for de minimis exemption
- Duty rates remain as established in previous Executive Orders based on additional tariffs imposed under national emergency authorities
- All applicable duties, taxes, fees will continue being collected on non-postal shipments as currently practiced
- Suspension remains valid regardless of whether previous emergency-based duties are legally challenged or invalidated
Legal Authority
- International Emergency Economic Powers Act (IEEPA) provides primary legal foundation
- National Emergencies Act and Trade Act of 1974 offer additional statutory support
- Presidential constitutional authority over foreign commerce and national security matters
Strategic Rationale
- National security concerns drive decision to maintain heightened customs enforcement
- Economic protection against unfair trade practices contributing to persistent trade deficits
- Border security enhancement through increased oversight of small-value shipments
- Drug interdiction support by eliminating exemptions that could facilitate illicit substance trafficking
Section 2. Continuing the Suspension of Duty-Free De Minimis Treatment
This executive order eliminates the duty-free exemption for low-value shipments, requiring most imports to pay applicable duties, taxes, and fees regardless of their value or origin.
- Universal Application: The duty-free de minimis exemption under 19 U.S.C. 1321(a)(2)(C) no longer applies to any shipments not covered by 50 U.S.C. 1702(b), regardless of:
- Value of goods
- Country of origin
- Transportation method
- Entry method
- Standard Shipment Requirements: All non-postal shipments must now:
- Pay full applicable duties, taxes, fees, and charges
- File proper entry documentation in the Automated Commercial Environment (ACE)
- Use qualified parties to make entries
- Follow standard customs procedures previously bypassed under de minimis rules
- International Postal Shipments Exception: Items sent through international postal networks receive special treatment:
- Subject only to specific duty rates outlined in Section 3 of the order
- Pass free of other duties until CBP establishes new postal entry processes
- No entry preparation required by CBP during transition period
- New procedures will be published in the Federal Register
Practical Impact:
- Businesses and Consumers: Previously duty-free small shipments now incur costs and administrative requirements, potentially affecting e-commerce and international trade patterns.
- Customs Processing: Increased workload for customs authorities as more shipments require formal entry procedures and duty collection.
- Postal vs. Commercial: Creates a two-tier system where postal shipments maintain some advantages during the transition period, while commercial shipments face immediate full compliance requirements.
Implementation Timeline:
- Immediate Effect: Standard shipments lose de minimis benefits upon the order’s effective date
- Postal Transition: International postal shipments operate under interim rules until CBP publishes new procedures in the Federal Register
Section 3. Duty Rates for International Postal Shipments
New regulations establish mandatory duty collection requirements for international postal shipments entering the United States.
- Transportation carriers (or CBP-approved qualified parties) must collect and remit duties on international postal shipments using CBP’s specified methodology and guidance
- Duty rate applies according to the Proclamation of February 20, 2026 (Temporary Import Surcharge) for all dutiable postal items containing goods for consumption
- Rate remains effective until either:
- The temporary import surcharge expires (per February 2026 Proclamation), or
- CBP implements new postal shipment entry processes
- Whichever occurs first
- Declaration requirements mandate that shippers provide:
- Country of origin information
- Item value details
- Must be submitted to CBP for all affected shipments
- Special handling continues for shipments subject to:
- Antidumping duties
- Countervailing duties
- Import quotas
- These must still use appropriate ACE entry types per existing regulations
Implementation Impact:
This revision significantly transforms international postal operations by shifting duty collection responsibility directly to transportation carriers. The change creates a streamlined collection process while maintaining regulatory compliance for specialized trade enforcement measures.
Transportation carriers must now establish systems for duty calculation, collection, and remittance, representing a major operational shift from traditional postal handling procedures. The dual timeline approach provides flexibility, allowing either policy expiration or new CBP processes to determine when these temporary measures conclude.
Compliance is mandatory for all qualifying international postal shipments, with carriers bearing direct responsibility for accurate duty assessment and timely remittance to CBP. This regulatory update reflects broader efforts to enhance trade enforcement and revenue collection on international e-commerce and postal transactions.
Section 4. Further Revisions
Executive Order 14324 is further revised by striking section 5 and renumbering sections 6 and 7 as 5 and 6, respectively.
Section 5. Implementation
- Effective Date: Modifications to De Minimis Executive Order 14324 take effect at 12:01 a.m. EST on February 24, 2026 for goods entered for consumption or withdrawn from warehouse
- Tariff Changes: The Harmonized Tariff Schedule of the United States will be modified according to the order’s Annex provisions
- Implementation Authority: The Secretary of Homeland Security is directed and authorized to take all necessary actions to implement this order
- Implementation Methods: Authority includes:
- Temporary suspension or amendment of existing regulations
- Publishing notices in the Federal Register
- Adopting new rules, regulations, or guidance
- Continued Powers: The Secretary may continue using all powers previously authorized under Executive Order 14324 as needed for implementation
- Legal Compliance: All implementation actions must remain consistent with applicable law
Section 6. Effect on Prior Actions and Severability
Any provision of previous proclamations and Executive Orders that is inconsistent with this order is superseded to the extent of such inconsistency. If any provision of this order or the application of any provision of this order to any individual or circumstance is held to be invalid, the remainder of this order and the application of its provisions to any other individuals or circumstances shall not be affected.
Section 7. General Provisions
- Authority Preservation: The order does not interfere with existing legal powers of executive departments, agencies, or their leadership
- Budget Authority: Does not affect the Office of Management and Budget Director’s responsibilities for budgetary, administrative, or legislative proposals
- Implementation Requirements: Must follow applicable laws and depends on available funding appropriations
- Legal Limitations: Creates no enforceable rights or benefits for any party against the United States government, its departments, agencies, officers, employees, or other individuals
- Publication Costs: The Department of Homeland Security will cover expenses for publishing this order
Links to De Minimis Annex Documentation
Should you or your organization have any questions with respect to this Executive Order, or its impact to your imports, please do not hesitate to contact your Dominion Customs Consultants representative, or feel free to reach usย here.
