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, 11746-11749 [2025-03900]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• U.S. Customs and Border Protection

[Federal Register Volume 90, Number 46 (Tuesday, March 11, 2025)]
[Notices]
[Pages 11746-11749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03900]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


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

AGENCY: U.S. Customs and Border Protection (CBP), Department of 
Homeland Security.

ACTION: Notice.

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SUMMARY: 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.

DATES: 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withdrawn from warehouse for consumption, on or after 12:01 a.m. 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.

FOR FURTHER INFORMATION CONTACT: Brandon Lord, Executive Director, 
Trade Policy and Programs, Office of Trade, U.S. Customs and Border 
Protection, (202) 325-6432 or by email at [email protected]. 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 [email protected].

SUPPLEMENTARY INFORMATION: 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). 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. 
See 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 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

[[Page 11747]]

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 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 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.
    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 Federal 
Register 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 ad valorem 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% ad 
valorem 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 ad valorem 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).\1\
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    \1\ 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 baggage for 
personal use, [2] maintenance within any country including payment 
of living expenses and acquisition of goods or services for personal 
use, and [3] arrangement or facilitation of such travel including 
nonscheduled air, sea, or land voyages.'' Only the first of the 
three categories of exceptions covered by 50 U.S.C. 1702(b)(4)--
products for personal use included in accompanied baggage of persons 
arriving in the United States--encompasses imported articles of 
merchandise, and such articles are excluded from the scope of the 
additional ad valorem duty provided for in new HTSUS heading 
9903.01.05 by the terms of that heading and new U.S. note 2(a).
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    The additional ad valorem duty provided for in new HTSUS heading 
9903.01.04 applies in addition to all other applicable duties, taxes, 
fees, exactions, and charges.
    Further, pursuant to Executive Order 14227, ``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 HTSUS headings 9903.01.04 and 9903.01.05 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 HTSUS headings 9903.01.04 and 9903.01.05 otherwise 
eligible for the ``de minimis'' exemption. Accordingly, articles that 
are products of Mexico that are eligible for the de minimis exemption 
and are covered by HTSUS headings 9903.01.04 and 9903.01.05 may 
continue to request de minimis entry and clearance 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 
9903.01.05 also applies to products of

[[Page 11748]]

Mexico that are eligible for temporary duty exemptions or reductions 
under subchapter II to chapter 99.
    The additional duties imposed by HTSUS heading 9903.01.05 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 
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

    1. 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 7, 2025, subdivision (a) of note 2 to 
subchapter III of chapter 99 of the Harmonized Tariff Schedule of 
the United States (HTSUS) is modified by deleting ``heading 
9903.01.02 and heading 9903.01.03,'' and by inserting ``headings 
9903.01.02, 9903.01.03, 9903.01.04 or 9903.01.05,'' in lieu thereof. 
Subdivision (a) of note 2 to subchapter III of chapter 99 of HTSUS 
is also modified with respect to heading 9903.01.01 by deleting 
``other than products described in heading 9903.01.02 and 
9903.01.03,'' and by inserting ``other than products described in 
headings 9903.01.02, 9903.01.03, 9903.01.04, and 9903.01.05,'' in 
lieu thereof.
    2. The heading 9903.01.01 is also modified by deleting ``except 
for products described in heading 9903.01.02 and heading 
9903.01.03,'' and by inserting ``except for products described in 
headings 9903.01.02, 9903.01.03, 9903.01.04, and 9903.01.05,'' in 
lieu thereof.
    3. 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 7, 2025, note 2 to subchapter III of 
chapter 99 of the HTSUS is modified by inserting the following new 
subdivision (c):
    ``(c) For the purposes of heading 9903.01.05, products of Mexico 
other than products described in headings 9903.01.01, 9903.01.02, 
9903.01.03, and 9903.01.04, and other than products for personal use 
included in accompanied baggage of persons arriving in the United 
States, shall be subject to an additional 10% 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 9903.01.05 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 9903.01.05 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 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 
9903.01.05.
    The additional duties imposed by heading 9903.01.05 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 9903.01.05 
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 9903.01.05.
    Products of Mexico that are provided for in headings 9903.01.04 
and 9903.01.05 that are otherwise eligible for the administrative 
exemption from duty and certain taxes at 19 U.S.C. 1321(a)(2)(C)--
known as the ``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.''
    4. 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 7, 2025, the article description of 
heading 9903.01.01 is modified by deleting ``heading 9903.01.02 and 
heading 9903.01.03,'' and inserting ``headings 9903.01.02, 
9903.01.03, 9903.01.04 and 9903.01.05,'' in lieu thereof.
    5. 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 7, 2025, subchapter III of chapter 99 
of the HTSUS is modified by inserting new headings 9903.01.04 and 
9903.01.05 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:

[[Page 11749]]



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                                                                              Rates of duty
                                                        --------------------------------------------------------
       Heading/subheading          Article description                     1
                                                        --------------------------------------         2
                                                              General            Special
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``9903.01.04...................  Articles that are       No change........  The duty provided  No change.
                                  entered free of duty                       in the
                                  under the terms of                         applicable
                                  general note 11 to                         subheading.
                                  the HTSUS, including
                                  any treatment set
                                  forth in subchapter
                                  XXIII of chapter 98
                                  and subchapter XXII
                                  of chapter 99 of the
                                  HTS, as related to
                                  the USMCA.
9903.01.05.....................  Potash that is a        The duty provided  No change........  No change''.
                                  product of Mexico, as   in the
                                  provided for in U.S.    applicable
                                  note 2(c) to this       subheading + 10%.
                                  subchapter.
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[FR Doc. 2025-03900 Filed 3-6-25; 7:00 pm]
BILLING CODE 9111-14-P