Amendment to Duties to Address the Flow of Illicit Drugs across our Northern Border
March 2, 2025
Action Summary
- Amendment to Previous Orders: Revises Executive Order 14193 (February 1, 2025) and its amendment EO 14197 (February 3, 2025) concerning measures to address the flow of illicit drugs across the Northern border.
- Duty-Free De Minimis Provision: Modifies section 2(h) to state that duty-free de minimis treatment under 19 U.S.C. 1321 will be available for eligible covered articles until the Secretary of Commerce notifies the President that adequate systems exist to process and collect applicable tariff revenue.
- Legal Authority: Exercised under multiple statutes, including the International Emergency Economic Powers Act, National Emergencies Act, and sections of the Trade Act of 1974 and the U.S. Code.
- General Provisions:
- Agency Authority: The order does not impair the lawful authority of executive departments, agencies, or the Office of Management and Budget.
- Implementation: Implementation is subject to the availability of appropriations and must be consistent with applicable law.
- No Enforceable Rights Created: The order does not confer any enforceable rights or benefits against the U.S. government or its representatives.
Risks & Considerations
- The amendment to the Executive Order regarding the flow of illicit drugs across the Northern Border could impact trade and economic relations with Canada, potentially affecting industries that rely on cross-border supply chains.
- Changes in duty-free de minimis treatment could lead to increased costs for importing certain goods, which may affect research and procurement activities at Vanderbilt University if any materials or equipment are sourced from Canada.
- The focus on enhancing tariff revenue collection may lead to stricter customs enforcement, potentially causing delays in the shipment of goods and materials necessary for university operations and research projects.
- Vanderbilt University may need to assess its supply chain and procurement strategies to mitigate any potential disruptions or increased costs resulting from these changes in trade policy.
Impacted Programs
- Vanderbilt’s Research Departments that rely on imported materials or equipment from Canada may need to evaluate alternative sourcing options or budget for potential cost increases.
- The Office of International Affairs might need to monitor changes in trade policies and their implications for international collaborations and partnerships.
- Logistics and Procurement Services at Vanderbilt may need to adjust their processes to accommodate any changes in customs procedures and ensure timely delivery of goods.
Financial Impact
- Potential increases in tariffs and changes in duty-free treatment could lead to higher costs for imported goods, impacting the university’s budget for research and operational expenses.
- Vanderbilt University may need to allocate additional resources to manage compliance with new trade regulations and ensure uninterrupted supply chains.
- There could be opportunities for Vanderbilt to engage in research or policy analysis related to the economic and social impacts of these trade policy changes, potentially attracting funding from government or industry partners.
Relevance Score: 3 (The order presents moderate risks involving compliance and potential cost implications for university operations.)
Key Actions
- Vanderbilt’s Law School should monitor changes in trade and tariff policies, particularly those related to the Northern Border, to understand potential impacts on international law and trade regulations. This could inform curriculum updates and research opportunities in international trade law.
- The Office of Federal Relations should engage with policymakers to understand the implications of changes in duty-free de minimis treatment and how it might affect research collaborations or partnerships with Canadian institutions.
- Vanderbilt’s Center for Health Policy could explore the public health implications of increased duties on goods related to the flow of illicit drugs, potentially contributing to policy recommendations or public health initiatives.
Opportunities
- The executive order provides an opportunity for Vanderbilt’s Owen Graduate School of Management to analyze the economic impacts of changes in trade policies on businesses and supply chains, offering insights that could be valuable for business strategy courses and research.
- By understanding the changes in trade regulations, Vanderbilt’s Department of Political Science can conduct research on the political and economic relationships between the U.S. and Canada, enhancing its contributions to international relations scholarship.
Relevance Score: 3 (Some adjustments are needed to processes or procedures, particularly in legal, economic, and public health research areas.)
Timeline for Implementation
N/A. No explicit deadline is provided; the directive remains contingent upon the Secretary of Commerce’s notification when adequate systems are established.
Relevance Score: 1
Impacted Government Organizations
- Department of Commerce: The amendment directly involves the Secretary of Commerce in monitoring and notifying the President regarding the implementation of systems to collect tariff revenue, thereby impacting this department’s role in trade and customs enforcement related to the policy.
- Office of Management and Budget (OMB): The order explicitly states that nothing shall impair the functions of the OMB Director, ensuring that the agency continues its oversight of budgetary and administrative processes in a manner consistent with its existing role.
Relevance Score: 1 (Only one or two federal agencies are directly impacted by this modification.)
Responsible Officials
- Secretary of Commerce – Tasked with notifying the President when adequate systems are in place to fully and expeditiously process and collect tariff revenue, thereby triggering the cessation of duty-free de minimis treatment.
Relevance Score: 5 (Directives affect a Cabinet official whose action significantly impacts the implementation of the order.)