Amendment to Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President's Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border

<NOTICE> DEPARTMENT OF HOMELAND SECURITY <SUBAGY>U.S. Customs and Border Protection</SUBAGY> <SUBJECT>Amendment to Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President's Executive Order 14194, Imposing Duties To Address the Situation at Our Southern Border</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> U.S. Customs and Border Protection (CBP), Department of Homeland Security. <HD SOURCE="HED">ACTION:</HD> Notice. <SUM> <HD SOURCE="HED">SUMMARY:</HD> In order to effectuate the President's Executive Order 14194, “Imposing Duties to Address the Situation At Our Southern Border,” as amended by Executive Order 14198, “Progress on the Situation at Our Southern Border,” and subsequently amended by Executive Order 14227, “Amendment to Duties to Address the Situation At Our Southern Border,” which imposed specified rates of duty on imports of articles that are products of Mexico, and further amended by the President's March 6, 2025 Executive order “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Southern Border,” the Secretary of Homeland Security has determined that appropriate action is needed to modify the Harmonized Tariff Schedule of the United States (HTSUS) as set out in the Annex to this notice. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> The duties set out in the Annex to this document are effective with respect to products of Mexico that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Brandon Lord, Executive Director, Trade Policy and Programs, Office of Trade, U.S. Customs and Border Protection, (202) 325-6432 or by email at <E T="03">traderemedy@cbp.dhs.gov.</E> C. Shane Campbell, Acting Executive Director, Cargo and Conveyance Security, Office of Field Operations, U.S. Customs and Border Protection, (202) 344-3401 or by email at <E T="03">traderemedy@cbp.dhs.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> 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) (90 FR 8327, January 29, 2025). <E T="03">See</E> National Emergencies Act (50 U.S.C. 1601 <E T="03">et seq.</E> ) (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. <E T="03">See</E> Executive 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 <E T="03">et seq.</E> ) (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. <E T="03">See</E> Executive Order 14227, “Amendment to Duties to Address the Situation At Our Southern Border” (March 2, 2025) (90 FR 11371, March 6, 2025). Specifically, as amended, subsection (g) of section 2 of Executive Order 14194 provides that duty-free <E T="03">de minimis</E> 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 <E T="03">de minimis</E> treatment. On March 6, 2025, the President signed Executive order “Amendment to Duties to Address the Flow of Illicit Drugs Across Our Southern Border.” In that Executive order, the President determined that automotive production is a major source of U.S. employment and innovation and integral to U.S. economic and national security. The American automotive industry as currently structured often trades substantial volumes of automotive parts and components across our borders in the interest of bringing supply chains closer to North America. In order to minimize disruption to the U.S. automotive industry and automotive workers, the President determined that it is appropriate to adjust tariffs imposed on articles of Mexico. Accordingly, articles that are entered free of duty as originating in Mexico under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada (USMCA), shall not be subject to the additional ad valorem rate of duty described in section 2(a) of Executive Order 14194. Furthermore, the additional ad valorem rate of duty described in Executive Order 14194 is reduced from 25% to 10% for potash that does not qualify for duty-free treatment under the USMCA, but is a product of Mexico, in accordance with the March 6, 2025 Executive order. All other products of Mexico that do not qualify for duty-free treatment under the USMCA shall remain subject to the rate of duty set forth in section 2(a) of Executive Order 14194 (unless otherwise exempted). Executive Order 14194 directed the Secretary of Homeland Security, to determine and implement the necessary modifications to the HTSUS, consistent with law, in order to effectuate the Executive Order, as amended by Executive Order 14198, Executive Order 14227, and the March 6, 2025 Executive order. As such, this notice is revising the March 3, 2025 CBP <E T="04">Federal Register</E> Notice titled “Notice of Implementation of Additional Duties on Products of Mexico Pursuant to the President's Executive Order 14194, Imposing Duties to Address the Flow of Illicit Drugs Across Our Southern Border” (90 FR 11429, March 6, 2025) to implement the rates of duty imposed by the March 6, 2025 Executive order. Effective at 12:01 a.m. eastern standard time on March 7, 2025, subchapter III of chapter 99 of the HTSUS is modified by the Annex to this notice. Articles that are entered free of duty as originating under the terms of general note 11 to the HTSUS, including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to USMCA, will not be subject to the additional <E T="03">ad valorem</E> rate of duty provided for in HTSUS heading 9903.01.01, as specified in the new HTSUS heading 9903.01.04. Potash not qualifying for duty-free treatment under the USMCA, but which is a product of Mexico, that is entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025 will be subject to the reduced additional 10% <E T="03">ad valorem</E> rate of duty provided for in HTSUS heading 9903.01.05, instead of the 25% ad valorem rate provided for in 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 <E T="03">ad valorem</E> duty provided for in new HTSUS heading 9903.01.04, 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 HTSUS heading 9903.01.02 or HTSUS heading 9903.01.03, as applicable. Specifically, HTSUS heading 9903.01.02 covers products encompassed by 50 U.S.C. 1702(b)(2) and HTSUS heading 9903.01.03 covers products encompassed by 50 U.S.C. 1702(b)(3). <SU>1</SU> <FTREF/> <FTNT> <SU>1</SU>  50 U.S.C. 1702(b)(1) covers “postal, telegraphic, telephonic, or other personal communication[s], which do[ ] not involve a transfer of anything of value,” and hence does not encompass any imported articles of merchandise. 50 U.S.C. 1702(b)(4) covers “transactions ordinarily incident to travel to or from any country, including [1] importation of accompanied bag ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 21k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━