Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China
The President issued an amendment to the Executive Order of February 1, 2025, concerning duties on synthetic opioids from China.
This amendment replaces subsection (g) of Section 2, clarifying that duty-free *de minimis* treatment will cease upon notification from the Secretary of Commerce that adequate systems exist for efficiently collecting tariffs.
The order also contains general provisions ensuring its implementation is in line with existing laws, and clarifying that it does not create new legal rights.
Arguments For
- Intended benefits: Clarifies the application of duty-free treatment for synthetic opioids, ensuring efficient tariff collection while maintaining access to certain goods via the de minimis provision. This could potentially enhance the effectiveness of previous measures aiming to curb the flow of illicit synthetic opioids.
- Evidence cited: The amendment explicitly references legal authority, including the International Emergency Economic Powers Act, National Emergencies Act, and sections of the Trade Act of 1974 and Title 3, United States Code, providing a basis for its enactment.
- Implementation methods: The amendment relies on the Secretary of Commerce providing notification regarding adequate systems for tariff revenue collection, suggesting a collaborative approach between agencies.
- Legal/historical basis: The amendment is framed under the President's constitutional and statutory authority, building upon a previously issued executive order focused on addressing the synthetic opioid crisis.
Arguments Against
- Potential impacts: The amendment could potentially lead to unintended consequences regarding trade relations with China if deemed overly restrictive or protectionist by international bodies. It could also place additional burdens on importers and exporters of goods.
- Implementation challenges: Effective implementation depends on the Secretary of Commerce establishing and verifying ‘adequate systems’ for collecting tariff revenue, requiring technical capability and administrative cooperation that may prove challenging.
- Alternative approaches: Other measures might have been explored to curb synthetic opioid imports, such as enhancing border security, strengthening international cooperation, or increasing domestic regulation of precursor chemicals.
- Unintended effects: The suspension of de minimis treatment, while aimed at efficient tariff collection, may increase costs for small businesses importing goods.
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
The President asserts the legal basis for this order, citing specific acts of Congress including the International Emergency Economic Powers Act, the National Emergencies Act, and sections of the Trade Act of 1974 and Title 3 of the U.S. Code.
This establishes the authority for the presidential action.
Section 1. Amendment. Regarding the Executive Order of February 1, 2025 (Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China), the following shall replace subsection (g) of section 2: “ (g) Duty-free de minimis treatment under 19 U.S.C. 1321 is available for otherwise eligible covered articles described in subsection (a) of this section, 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 this section for covered articles otherwise eligible for de minimis treatment.”
Section 1 amends a previous executive order from February 1, 2025.
It focuses on subsection (g) of section 2, which concerns duty-free treatment for eligible items.
This amendment specifies that the duty-free treatment ends when the Secretary of Commerce confirms the existence of adequate systems for collecting applicable tariffs.
Sec. 2. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department, agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Section 2 provides general provisions.
Subsection (a) ensures that this order doesn't limit the existing authority of executive bodies or the Office of Management and Budget's roles.
Subsection (b) emphasizes compliance with existing laws and the need for approved funding.
Subsection (c) clarifies that the order doesn't create any legally enforceable rights.