Global postal services halt US parcels as de minimis tariff deadline nears

By Laura Curtis

 

Postal services across the world are cutting off parcel deliveries to the US as the fast-approaching end of a tariff exception for low-value packages sows chaos in global shipping.

 

As of Aug. 29, President Donald Trump is ending the so-called de minimis exemption that has applied to more than 4 million parcels processed by US Customs and Border Protection each day. In response, a growing number of national mail services plan to temporarily suspend service to the US as soon as this week, citing a lack of clarity from American authorities on how the duties will be collected and how to submit required data. 

 

 

In Asia, Korea Post said it will halt accepting air parcels and some express mail services to the US starting Tuesday, while keeping premium services, operated via private couriers, available subject to customs duties. Similarly, Singapore’s SingPost will suspend standard services for commercial shipments to America from Monday, with Speedpost’s Express and Direct International Service available to retail and corporate customers, respectively. 

 

Japan warned of potential delays or returned parcels because of the changes, with authorities vowing to share more information when available.

 

European postal services too made adjustments in light of the changes, with several suspending shipments of goods to that geography. The Czech Republic will halt US-bound parcels starting Thursday, while Austria’s postal provider will stop accepting them after Aug. 25, citing the changes. Belgium’s Bpost will reportedly pause shipments from Friday due to regulatory uncertainty, and the UK’s Royal Mail plans a brief suspension next week to implement a revised system for handling the newly-imposed duties. 

 

Elsewhere, Australia Post has temporarily suspended its transit service deliveries — a small number of items from third countries sent through Australia to the US — a spokesperson confirmed. However, regular direct deliveries between the two countries will be unaffected.

 

The White House and CBP did not immediately respond to requests for comment.

 

The service interruptions highlight the seismic impact from Trump’s decision to eliminate the de minimis exemption. The policy had allowed low-value parcels to flow into the US from around the world with little interruption. Now, postal services, online sellers, consumers and shipping companies are attempting to sort through the costly and complicated process to comply with US rules with little guidance from federal agencies.

 

“It is a real concern that the dominoes are falling and there will be a ripple effect where more and more posts announce that they will be suspending packages to the US,” said Kate Muth, executive director of the International Mailers Advisory Group, which represents the US international mailing and shipping industry.  

 

Once the exemption ends, duties will be assessed on US imports shipped by mail based on the country-of-origin tariff rate that Trump imposed using his emergency powers. Alternatively, packages shipped via international post could be assessed with a temporary flat fee of $80 to $200 per item, but only for the next six months.

 

CBP outlined in an Aug. 15 bulletin how the flat fees would be calculated, corresponding to the countries’ tariff rates. The agency also offered some additional instruction to shippers on Thursday, when it issued guidance certifying two companies to collect and pay duties on behalf of international mail carriers. 

 

“It’s obviously very welcomed,” Muth said, “but it’s still a concern that we’re just a week away and we only have the first two approved.”

 

The fallout is extending beyond mail carriers. Starting Aug. 25, online marketplace Etsy Inc. plans to suspend its shipping label service for national mail services in Australia, Canada and the UK for US-bound packages, according to its website.

 

The company suggested that shippers use carriers with services in place that allow them to pay duties before goods arrive in the US, such as United Parcel Service Inc. and FedEx Corp.

 

FedEx said it continues to accept and transport shipments to the US and is unaffected by the postal operators’ decisions. UPS had no immediate comment. The US Postal Service didn’t immediately respond to a request for comment.