U.S. Postal Service (USPS) vans are parked at a put up workplace on August 23, 2024 in Los Angeles, California.
Mario Tama | Getty Pictures
Postal providers internationally are halting shipments to the USA this week amid mounting confusion over new import duties that can apply to parcels beginning Friday.
President Donald Trump signed an govt order final month abolishing the commerce loophole often known as “de minimis,” which since 2016 had allowed items value as much as $800 to enter the U.S. duty-free.
The tip of the exemption is being prolonged worldwide after the loophole was closed in Could for packages from mainland China and Hong Kong.
Underneath the brand new guidelines, private items value lower than $100 will nonetheless be duty-free, however all different packages will face the identical tariffs as customary imports from their nation of origin.
The deliberate coverage shift, which operators say lacks clear procedures, has raised issues about backlogs as providers are placed on maintain.
Postal suppliers in Belgium, Denmark and New Zealand are amongst a number of operators which have already suspended shipments of packages to the U.S. till they will retool their techniques to adjust to the brand new guidelines. Letters and paperwork are usually unaffected.
Companies in Germany, France, Britain and India have introduced they’ll observe go well with within the coming days.
France’s nationwide postal service, La Poste, stated in a press release that the U.S. didn’t present full particulars or permit sufficient time to organize for brand new customs procedures. New Zealand’s postal service stated parcel deliveries to all U.S. states and territories could be “briefly unavailable till additional discover” whereas techniques are up to date to satisfy new U.S. customs necessities.
DHL, one of many world’s largest courier firms, stated Friday that it’ll cease accepting parcels containing items from enterprise clients destined for the U.S. starting Monday.
The corporate cited unresolved “key questions” concerning the course of, together with “how and by whom customs duties can be collected sooner or later, what further information can be required, and the way the information transmission to the U.S. Customs and Border Safety can be carried out.”
DHL will, nonetheless, proceed to ship personal parcels labeled as items valued beneath $100, in keeping with White Home assurances.
The White Home stated ending the duty-free exemption would assist fight “escalating misleading delivery practices, unlawful materials, and obligation circumvention,” claiming some shippers had “abused” the exemption to ship illicit medication equivalent to fentanyl into the U.S.
It stated the variety of de minimis parcels jumped from 134 million in 2015 to greater than 1.36 billion in 2024 as shippers “deceptively exploit the de minimis privilege in an effort to evade duties, inspection, and U.S. regulation.”
Most of these packages got here from mainland China and Hong Kong, which the Trump administration initially focused as a part of efforts to curb American customers from ordering low-value items from China-linked retailers equivalent to Temu and Shein.
The White Home briefly closed the loophole for mainland China and Hong Kong in February, however rapidly prolonged the deadline to Could 2 amid confusion over how the brand new duties could be collected.