New Burdens Aloft: What Trump’s De Minimis Revocation Means for Air Carriers

A bouquet of tulips from Amsterdam. A wedge of Parmigiano-Reggiano. A Hokkaido melon in gift wrap. A tin of French truffles. No longer considered indulgences, these cross-border packages can travel across the world to your doorstep at 500 miles an hour, often with no duties or paperwork required, thanks to air cargo carriers and long-standing duty-free rules on de minimis articles.

This frictionless flow faces regulatory headwinds due to recent Executive Orders and shifts in Department of Transportation (DOT) policy. Air carriers need to be ready for incoming federal regulations.

Effective May 2, 2025, at 12:01 AM EDT, pursuant to Executive Order 14256 (as amended) the Trump Administration ended duty-free treatment for low-value or “de minimis” articles under 19 U.S.C. § 1321(a)(2)(C) for imports that enter the United States for consumption or are withdrawn from a warehouse for consumption from China, including Hong Kong and Macau.[1]

Notably, while China remains the only country to have formally lost its de minimis shipping exemption, it is not the only country at risk. Under Executive Order 14257, all countries and economic regions listed in Annex 1 of EO 14257 may also be subject to the revocation of de minimis privileges. Specifically, EO 14257 provides that “duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) [shall continue]…until the Secretary of Commerce determines adequate systems are in place to fully and expeditiously process and collect duty revenue applicable…for articles otherwise eligible for de minimis treatment.”[2] If this language sounds familiar, it is because similar language was cited in EO 14256.[3]

Current Assessment of Duties and Obligations under EO 14256

The Order applies to both international postal shipments and commercial cargo, and introduces new customs duties, reporting, and entry requirements.

Commercial Shipments (Non-Postal): Imported goods sent through means other than the international postal network, (i.e., air freight and courier and express consignment services), valued at or under $800 USD, will be subject to all applicable duties, including those imposed under EO 14195, as amended by EO 14228 (e.g., 20% ad valorem duties), Section 301 tariffs, and any other relevant duty rates or trade remedies.[4]

• Imports must also be entered by a qualified party under a formal or informal entry type in the Automated Commercial Environment (ACE) system operated by Customs and Border Protection (CBP).
• Air carrier obligations are much more limited under this scheme because, in this scenario, the carrier is acting as the logistics provider, not as the filer of record or duty remitter. Therefore, CBP places less burden on the carrier because another responsible party is clearly identified and liable.

Postal Shipments (International Postal Network): Imported goods sent through the international postal network (i.e., USPS and China Post) that are valued at or under $800 are either (1) subject to a duty rate that is either 120% of their value or (2) a flat fee of $100 per item (increasing to $200 an item on June 1, 2025). These duties apply in lieu of other tariffs (e.g., MFN rates, Section 301 duties, or 20% ad valorem duties under prior E.O.s), unless required by law.

Air Carrier Responsibilities:

• Air carriers must obtain and maintain an international carrier bond to ensure payment of the duties required. This is required to secure payment of duties under either value method. CBP is authorized to determine the sufficiency of the bond based on volume and liability exposure. (EO § 2(d));
• Apply the same duty collection methodology to all shipments (flat fee or 120% ad valorem rate) (EO § 2(c)), for the relevant period;
• Collect and remit duties to CBP once a month or on a scheduled basis for all postal items containing goods. (EO § 2(b)(ii));
• Report to CBP the total number of postal items containing goods for each inbound conveyance. This includes the value of each item, if using the ad valorem duty method. (EO § 2(b)(iii)); and
• Submit shipment data in ACE and comply with CBP verification if required; CBP may require verification documentation, and all data must be electronically transmitted through ACE in a format and timeframe prescribed by CBP. (EO § 2(b)(iii)).

In addition, CBP may require formal entry in accordance with the existing regulations for any international postal package. If formal entry (typically applicable to items valued over $2,500) is required, then the international postal package is not subject to the duties described in the Amendment, and is instead subject to all applicable duties, taxes, and fees in accordance with all applicable laws.

Once an air carrier selects the duty collection methodology, it is required to use the same method for all shipments. The methodology may change once a month (or on another timeline as CBP determines appropriate), on 24-hour notice to CBP.

If the Ad Valorem Duty method is selected, then the transportation carrier must include the value of each postal item containing goods, transported per conveyance, in a timeframe and manner prescribed by CBP. CBP may require electronic submission of the requisite documentation and information through ACE.

Future Assessment of Duties and Obligations under EO 14257

Despite some elements of EO 14257 being paused, the question remains whether (and if so when) the Secretary of Commerce will determine if adequate systems are in place for any country enumerated on Annex 1 and how the change will be implemented.

Although the timeline and specific benchmarks for this assessment remain unclear, the policy trajectory suggests that the implementation framework will likely follow the structure and obligations set forth in EO 14256, discussed above. There is also reason to believe that the future of this policy per country may be impacted by the ongoing trade talks. If negotiations lead to trade agreements addressing key concerns, we may see some countries “never” have the adequate processes in place. Conversely, if talks stall or tensions escalate, we may see countries impacted sooner rather than later.

How Air Carriers Should Prepare

The Trump administration is issuing Executive Orders and tackling relations with foreign countries at a fast pace, so air carriers need to stay vigilant as news and updates develop.

Because policies are changing every day, someone on your team should regularly monitor updates. You should also have a plan or policy in place, so you can act immediately, should the change go into effect and impact your operations.

Prepare to communicate with clients and customers if there is a change in your ability to provide services from certain locations. Expect potential delays due to anticipated bottlenecks in CBP processing related to compliance and clearance activities.

If needed, contact a legal professional who specializes in tariff implementation or CBP.

About Our Author

Tyler Conklin is a leading member of the Adams & Reese Aviation & Aerospace Team. She has substantial experience providing comprehensive legal advice on compliance, risk management, and strategy across diverse aspects of aviation business and operations. Tyler is experienced in risk analysis, contract negotiation, sophisticated internal investigations, legal compliance, HR and Legal policy development, disciplinary actions, and union relations. Prior to joining Adams & Reese, Tyler served as in-house counsel at Atlas Air, Inc., where she was the legal focal for the Flight Operations Department of the leading international cargo airline. Tyler’s in-house experience affords direct insight into complex legal, operational, and commercial issues, which they apply to help clients navigate risks, solve problems, and capitalize on opportunities.

FOOTNOTES

1. Exec. Order No. 14256, The Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports, as amended by Exec. Order Nos. 14259 & 14266, 90 Fed. Reg. 14899, 14,899–900 (Apr. 2, 2025). [NOTE] Section 5 of EO 14228, the de minimis ineligibility to packages was expanded to include packages from the Macau Special Administrative Region.
2. Exec. Order No. 14257, Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficit, 90 Fed. Reg. 15041 (April 2, 2025).
3. Exec. Order No. 14256 § 1.
4. Exec. Order No. 14195, Imposing Duties To Address the Synthetic Opioid Supply Chain in the People's Republic of China, as amended by Exec. Order No. 14228, Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China, 90 Fed. Reg. 9,121 (Feb. 7, 2025), amended by 90 Fed. Reg. 11463 (Mar. 7, 2025).