Executive Order continues full suspension of duty-free de minimis for all imports and imposes a temporary surcharge on postal shipments effective Feb. 24, 2026.

REGULATORY BRIEFING – CONTINUATION OF SUSPENSION OF DUTY-FREE DE MINIMIS TREATMENT

1. What changed

• The President has issued an Executive Order (February 20, 2026) that:
• Continues and strengthens the suspension of duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for all countries and all shipment values.
• Confirms that all shipments not covered by 50 U.S.C. 1702(b) are no longer eligible for duty-free de minimis, regardless of value, country of origin, mode of transport, or method of entry.
• Establishes a specific duty mechanism for international postal shipments that would otherwise qualify for de minimis, tying the rate to the temporary import surcharge set in the Proclamation of February 20, 2026 ("Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems").
• Directs that the Harmonized Tariff Schedule of the United States (HTSUS) be modified as provided in an Annex to this order (likely including new Chapter 99 provisions and/or notes implementing the de minimis suspension and postal surcharge).
• Authorizes DHS/CBP to implement via regulations, temporary regulatory suspensions/amendments, and Federal Register notices.

2. Affected products and scope

• Scope of suspension:
• All imported "shipments of articles" not covered by 50 U.S.C. 1702(b) (IEEPA carve-outs) are affected.
• No value threshold: the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) is suspended for all values (including shipments at or below the former $800 threshold).
• All countries of origin are covered ("for all countries").
• All modes of transportation and methods of entry are covered.

• Non-postal shipments:
• All non-postal shipments that previously entered under de minimis (e.g., Section 321 Type 86 or other low-value processes) must now:
• Be entered using an appropriate formal or informal entry type in ACE.
• Be made by a party qualified to make entry (importer of record, broker, or other qualified party).
• Pay all applicable duties, taxes, fees, exactions, and charges (including MFN/Column 1 duties, Section 301/232/201/other Chapter 99 duties, MPF, HMF where applicable, ADD/CVD, and any quotas).

• International postal shipments:
• Postal shipments that would otherwise qualify for de minimis under 19 U.S.C. 1321(a)(2)(C) are now:
• Subject to a duty equal to the rate of the temporary import surcharge established in the Proclamation of February 20, 2026.
• Required to have declared to CBP the country of origin and value of each dutiable postal item.
• Postal shipments subject to antidumping (AD), countervailing (CVD) duties, or quotas must still be entered under an appropriate entry type in ACE as required by existing regulations (i.e., they cannot rely solely on the postal surcharge mechanism).

• HTS/Chapter 99 impacts:
• The order explicitly states that the HTSUS will be modified as provided in the Annex to the order. While the Annex text is not included here, it is expected to:
• Add or amend Chapter 99 provisions to implement the suspension of de minimis and the temporary postal surcharge.
• Possibly create new statistical reporting requirements or notes for low-value shipments and postal consignments.

3. Rate changes

• De minimis suspension:
• Previous regime: Shipments meeting 19 U.S.C. 1321(a)(2)(C) (generally up to $800 per person per day) could enter free of duty and tax, with limited data requirements.
• New regime: That duty-free treatment is fully suspended for all covered shipments.
• Result: All such shipments are now subject to "all applicable duties, taxes, fees, exactions, and charges" based on their HTS classification and any applicable trade remedies.

• Postal shipments – temporary surcharge:
• A duty equal to the rate provided in the Proclamation of February 20, 2026 (Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems) will be assessed on the value of each dutiable postal item containing goods entered for consumption.
• The exact numerical rate is set in that Proclamation (not reproduced in this text). Importers and carriers must consult the Proclamation for the specific percentage or amount.
• This surcharge applies until the earlier of:
• The expiration date of the temporary import surcharge in the Proclamation; or
• The effective date of the new CBP entry process for postal shipments, as published in the Federal Register.

4. Key dates

• Executive Order date: February 20, 2026.
• Effective date for import entries:
• The modifications to Executive Order 14324 in this order are effective for goods:
• Entered for consumption, or
• Withdrawn from warehouse for consumption,
• On or after 12:01 a.m. Eastern Standard Time on February 24, 2026.

• Postal surcharge duration:
• Begins with the effective date of this order (for postal shipments entered for consumption on or after 12:01 a.m. EST February 24, 2026).
• Ends on the earlier of:
• The expiration date of the temporary import surcharge in the February 20, 2026 Proclamation; or
• The effective date of the new CBP postal entry process, which will be announced in a Federal Register notice.

5. Operational and compliance requirements

5.1 For importers and brokers (non-postal shipments)

• Entry filing:
• All shipments that previously qualified for de minimis must now be entered using an appropriate entry type in ACE (e.g., Type 01, 11, 86 if still permitted under revised rules, or other types as directed by CBP).
• Entries must be filed by a party qualified to make entry (importer of record, licensed customs broker, or other qualified party).

• Duty and fee liability:
• Expect duty liability on all low-value shipments based on their HTS classification.
• Ensure correct application of:
• Column 1 general rates.
• Any applicable Section 301, 232, 201, or other Chapter 99 additional duties.
• Merchandise Processing Fee (MPF) and Harbor Maintenance Fee (HMF), where applicable.
• Any ADD/CVD cash deposits and special instructions.

• Systems and process changes:
• Update internal systems to:
• Stop treating sub-$800 shipments as duty-free by default.
• Require full HTS classification and country-of-origin determination for all shipments, regardless of value.
• Capture and transmit all data elements required for formal/informal entries in ACE.
• Review contracts with logistics providers and fulfillment centers to reflect new cost and data requirements.

• Pricing and customer communication:
• Reassess landed cost models for direct-to-consumer and e-commerce shipments into the U.S.
• Consider revising pricing, shipping charges, or minimum order thresholds to account for new duty and fee burdens.
• Communicate potential duty and tax impacts to customers, especially for cross-border e-commerce.

5.2 For transportation carriers and postal operators

• Duty collection and remittance (postal shipments):
• Transportation carriers delivering shipments through the international postal network, or other CBP-approved qualified parties, must:
• Collect duties from consignees or other responsible parties based on the temporary import surcharge rate.
• Remit collected duties to CBP in accordance with CBP guidance on requirements and processes for remittance.
• Carriers must implement systems to:
• Calculate the surcharge on the declared value of each dutiable postal item.
• Track and remit payments to CBP.

• Data requirements:
• For all international postal shipments subject to the surcharge:
• Country of origin and value must be declared to CBP.
• Carriers and foreign postal operators must ensure that electronic advance data (EAD) includes accurate origin and value information.

• AD/CVD and quota shipments:
• Postal shipments subject to AD/CVD or quotas must continue to be entered under appropriate entry types in ACE.
• Carriers should have screening processes to identify such shipments and coordinate with importers/brokers for proper entry.

5.3 For compliance teams

• Policy and procedure updates:
• Update import compliance manuals to remove reliance on de minimis for any shipments.
• Implement procedures to:
• Classify all imported goods with full 10-digit HTS codes.
• Determine origin and applicable trade remedies for all shipments, regardless of value.
• Monitor CBP guidance and Federal Register notices on the new postal entry process and HTS Annex implementation.

• Risk management:
• Increase oversight of low-value shipments, which now carry full duty and penalty exposure.
• Review and adjust internal controls to prevent under-valuation or misclassification of small consignments.
• Prepare for potential CBP audits focused on former de minimis flows.

6. Practical next steps

• Immediately (before February 24, 2026):
• Identify all import flows currently using de minimis (e.g., Section 321, Type 86, postal low-value) and quantify volumes and values.
• Map these flows to full entry processes in ACE and ensure broker capacity.
• Confirm HTS classifications and origin determinations for high-volume SKUs previously shipped under de minimis.

• On and after February 24, 2026:
• Ensure no shipments are declared under duty-free de minimis treatment.
• File appropriate entries for all shipments and pay applicable duties and fees.
• For postal shipments, coordinate with carriers to understand how the temporary surcharge will be calculated, collected, and reported.

• Ongoing:
• Monitor:
• CBP Federal Register notices for the new postal entry process effective date.
• The expiration date and any amendments to the temporary import surcharge Proclamation.
• Publication of the HTSUS Annex implementing this order and any Chapter 99 or note changes.

7. References and source documents

• Executive Order (February 20, 2026): Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries
• White House link (when available):
• https://www.whitehouse.gov/briefing-room/presidential-actions/ (navigate to February 20, 2026 Executive Orders)

• Related Executive Orders referenced:
• Executive Order 14324 (July 30, 2025): Suspending Duty-Free De Minimis Treatment for All Countries.
• Executive Order 14193 (February 1, 2025): Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border.
• Executive Order 14194 (February 1, 2025): Imposing Duties To Address the Situation at Our Southern Border.
• Executive Order 14195 (February 1, 2025): Imposing Duties To Address the Synthetic Opioid Supply Chain in the PRC.
• Executive Order 14257 (April 2, 2025): Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual U.S. Goods Trade Deficits.

• Proclamation (February 20, 2026): Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems
• White House link (when available):
• https://www.whitehouse.gov/briefing-room/presidential-actions/ (navigate to February 20, 2026 Proclamations)
• This Proclamation contains the specific surcharge rate applied to postal shipments under this order.

• HTSUS Annex to the Executive Order:
• Will be published with the Executive Order or via USTR/ITC/CBP.
• Check:
• U.S. International Trade Commission HTS site: https://hts.usitc.gov
• CBP and USTR websites for Chapter 99 and related implementation documents.

Importers, brokers, and carriers should treat February 24, 2026 as a hard cutover date: de minimis duty-free treatment is no longer available, and all low-value imports must be processed and paid as regular dutiable entries, with a special temporary surcharge regime for qualifying postal shipments until CBP’s new postal entry process is in place or the surcharge expires.