On January 20, 2025, the President declared a national emergency with respect to the grave threat to the United States posed by the influx of illegal aliens and drugs into the United States in Proclamation 10886 (Declaring a National Emergency at the Southern Border). See National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA).
On February 1, 2025, the President expanded the scope of the national emergency declared in that proclamation to cover the public health crisis of deaths due to the use of fentanyl and other illicit drugs and the failure of Mexico to arrest, seize, detain, or otherwise intercept drug trafficking organizations, other drug and human traffickers, criminals at large, and drugs. In addition, the President determined that this failure to act on the part of the Mexican government constitutes an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security, foreign policy, and economy of the United States. SeeExecutive Order 14194 (90 FR 9117), dated February 1, 2025.
To address this threat, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the NEA, section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and 3 U.S.C. 301, the President imposed ad valorem tariffs on all imports that are products of Mexico, excluding those encompassed by 50 U.S.C. 1702(b). Specifically, Executive Order 14194 adjusted duties on imported products of Mexico, by imposing, consistent with law, an additional 25 percent ad valorem rate of duty.
On February 3, 2025, the President issued Executive Order 14198, “Progress on the Situation at Our Southern Border” (90 FR 9185), which amended Executive Order 14194 by pausing the implementation of the additional duties for 30 days until March 4, 2025, to allow time to assess whether actions taken by Mexico as of that date were sufficient to alleviate the crisis and resolve the unusual and extraordinary threat beyond our southern border. Additionally, Executive Order 14198 withdrew the exceptions in section 2(a) of Executive Order 14194 related to covered goods loaded onto a vessel at a port of entry or in transit on the final mode of transport prior to entry into the United States.
Subsequently, on March 2, 2025, the President amended subsection (g) of section 2 of Executive Order 14194, to modify the application of 19 U.S.C. 1321 to goods covered by subsection (a) of section 2 of Executive Order 14194. See Executive Order “Amendment to Duties to Address the Situation At Our Southern Border,” (March 2, 2025). Specifically, as amended, section 2(g) of Executive Order 14194 provides that duty-free de minimis treatment under 19 U.S.C. 1321 is available for otherwise eligible covered articles described in the Executive Order, but 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 section 2 of the Executive Order for covered articles otherwise eligible for de minimis treatment.
Executive Order 14194 directed the Secretary of Homeland Security, to determine and implement the necessary modifications to the Harmonized Tariff Schedule of the United States (HTSUS), consistent with law, in order to effectuate the Executive Order, as amended by Executive Order 14198. In order to implement the rates of duty imposed by the Executive Order, as amended, effective on 12:01 a.m. eastern standard time on March 4, 2025, subchapter III of chapter 99 of the HTSUS is modified by the Annex to this notice.
Articles that are products of Mexico, excluding those encompassed by 50 U.S.C. 1702(b), that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on ( print page 11430) March 4, 2025, will be subject to the additional ad valorem rate of duty provided for in new HTSUS heading 9903.01.01.
Imported products of Mexico that are encompassed by 50 U.S.C. 1702(b) will not be subject to the additional ad valorem duty provided for in new HTSUS heading 9903.01.01, but such qualifying products, other than products for personal use included in accompanied baggage of persons arriving in the United States, must be declared and entered under new HTSUS heading 9903.01.02 or new HTSUS heading 9903.01.03, as applicable. Specifically, new HTSUS heading 9903.01.02 covers products encompassed by 50 U.S.C. 1702(b)(2) and new HTSUS heading 9903.01.03 covers products encompassed by 50 U.S.C. 1702(b)(3).[1]
The additional ad valorem duty provided for in new HTSUS heading 9903.01.01 applies in addition to all other applicable duties, taxes, fees, exactions, and charges.
Further, pursuant to the March 2, 2025 Executive Order “Amendment to Duties to Address the Situation At Our Southern Border,” the administrative exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)—known as the “ de minimis” exemption—continues to be available for articles covered by heading 9903.01.01 that are otherwise eligible for the exemption, including for eligible articles sent to the United States through the international postal network, but 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 to articles covered by heading 9903.01.01 otherwise eligible for the “ de minimis” exemption. Accordingly, articles that are the product of Mexico that are eligible for the de minimis exemption and are covered by heading 9903.01.01 may continue to request duty free de minimis treatment until such time as the Secretary of Commerce, in consultation with the Secretary of the Treasury, so notifies the President and further guidance is provided.
The additional ad valorem duty provided for in new HTSUS heading 9903.01.01 also applies to products of Mexico that are eligible for special tariff treatment under general note 3(c)(i) to the HTSUS, and that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99. The Annex to this notice includes instructions on the application of the additional duties to goods entered under certain provisions of chapters 98 and 99 of the HTSUS, along with the application of the additional duties to goods qualifying for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA).
The additional duties imposed by heading 9903.01.01 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (“CBP”), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in Mexico), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Mexico), less the cost or value of such products of the United States, as described.
The Annex to this notice also provides that products of Mexico include both goods of Mexico under the rules set forth in part 102, Title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Mexico was the last country of substantial transformation prior to importation into the United States.
Articles that are products of Mexico, excluding those encompassed by 50 U.S.C. 1702(b), except those that are eligible for admission to a foreign trade zone under “domestic status” as defined in 19 CFR 146.43, and are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern standard time on March 4, 2025, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41. Such articles will be subject, upon entry for consumption, to the duties imposed by the Executive Order, as amended, and the rates of duty related to the classification under the applicable HTSUS heading or subheading in effect at the time of admission into the United States foreign trade zone.
No drawback shall be available with respect to the additional duties imposed pursuant to the Executive Orders.
Kristi Noem,
Secretary.
Annex
To Modify Chapter 99 of the Harmonized Tariff Schedule of the United States
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 4, 2025, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified:
1. by inserting the following new heading 9903.01.01 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled “Heading/Subheading”, “Article Description”, “Rates of Duty 1—General”, “Rates of Duty 1—Special” and “Rates of Duty 2”, respectively:
| Heading/subheading | Article description | Rates of duty | ||
|---|---|---|---|---|
| 1 | 2 | |||
| General | Special | |||
| “9903.01.01 | Except for products described in heading 9903.01.02 and heading 9903.01.03, articles the product of Mexico, as provided for in U.S. note 2(a) to this subchapter | The duty provided in the applicable subheading + 25% | The duty provided in the applicable subheading + 25% | No change. |
2. by inserting the following new heading 9903.01.02 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled “Heading/Subheading”, “Article Description”, “Rates ( print page 11431) of Duty 1—General”, “Rates of Duty 1—Special” and “Rates of Duty 2”, respectively:
| Heading/subheading | Article description | Rates of duty | ||
|---|---|---|---|---|
| 1 | 2 | |||
| General | Special | |||
| “9903.01.02 | Articles the product of Mexico that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, as provided for in U.S. note 2(b) to this subchapter | The duty provided in the applicable subheading | The duty provided in the applicable subheading | No change. |
3. by inserting the following new heading 9903.01.03 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled “Heading/Subheading”, “Article Description”, “Rates of Duty 1—General”, “Rates of Duty 1—Special” and “Rates of Duty 2”, respectively:
| Heading/subheading | Article description | Rates of duty | ||
|---|---|---|---|---|
| 1 | 2 | |||
| General | Special | |||
| “9903.01.03 | Articles the product of Mexico that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds | The duty provided in the applicable subheading | The duty provided in the applicable subheading | No change. |
4. by inserting the following new U.S. note 2 to subchapter III of chapter 99 of the HTSUS in numerical sequence:
“2. (a) For the purposes of heading 9903.01.01, products of Mexico, other than products described in heading 9903.01.02 and heading 9903.01.03, and other than products for personal use included in accompanied baggage of persons arriving in the United States, shall be subject to an additional 25% ad valorem rate of duty. Notwithstanding U.S. note 1 to this subchapter, all products of Mexico that are subject to the additional ad valorem rate of duty imposed by heading 9903.01.01 shall also be subject to the general rates of duty imposed on products of Mexico entered under subheadings in chapters 1 to 97 of the tariff schedule.
The additional duties imposed by heading 9903.01.01 apply to products of Mexico including both goods of Mexico under the rules set forth in part 102, title 19 of the Code of Federal Regulations, as applicable, as well as goods for which Mexico was the last country of substantial transformation prior to importation into the United States.
Products of Mexico that are eligible for special tariff treatment under general note 3(c)(i) to the tariff schedule, or that are eligible for temporary duty exemptions or reductions under subchapter II to chapter 99, shall be subject to the additional ad valorem rate of duty imposed by heading 9903.01.01.
The additional duties imposed by heading 9903.01.01 shall not apply to goods for which entry is properly claimed under a provision of chapter 98 of the tariff schedule pursuant to applicable regulations of U.S. Customs and Border Protection (“CBP”), and whenever CBP agrees that entry under such a provision is appropriate, except for goods entered under heading 9802.00.80; and subheadings 9802.00.40, 9802.00.50, and 9802.00.60. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed (in Mexico), as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article assembled abroad (in Mexico), less the cost or value of such products of the United States, as described.
Products of Mexico that are provided for in heading 9903.01.01 shall continue to be subject to antidumping, countervailing, or other duties, taxes, fees, exactions and charges that apply to such products, as well as to the additional ad valorem rate of duty imposed by heading 9903.01.01.
Products of Mexico that are provided for in heading 9903.01.01 and that are otherwise eligible for the administrative exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)—known as “ de minimis” exemption—may continue to qualify for the exemption, but the de minimis exemption shall cease to be available for such articles upon notification by the Secretary of Commerce, in consultation with the Secretary of the Treasury, to the President that adequate systems are in place to fully and expediently process and collect tariff revenue applicable for covered articles otherwise eligible for the de minimis exemption.
(b) Heading 9903.01.02 covers only products of Mexico, that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, except to the extent that the President determines that such donations (A) would seriously impair his ability to deal with any national emergency declared under section 1701 of title 19 of the U.S. Code, (B) are in response to coercion against the proposed recipient or donor, or (C) would endanger Armed Forces of the United States which are engaged in hostilities or are in a situation where imminent involvement in hostilities is clearly indicated by the circumstances.”
