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.
The Czech Republic’s postal service will suspend US goods shipments until further notice starting Thursday, according to its website. Austria’s post provider will no longer accept packages bound for the US after Aug 25, citing the changes to US customs rules.
“There is currently insufficient information available about the customs clearance procedures that will be required in future,” Austrian Post said in a statement. “This tightening of the rules poses major challenges for all postal companies worldwide when shipping goods to the USA.”
Belgium’s Bpost said it will temporarily stop sending parcels to the US starting Friday due to uncertainty surrounding the new US rules for international shipments, according to newspaper Het Laatste Nieuws.
The UK’s Royal Mail meanwhile plans to suspend US shipments for one to two days next week as it transitions to a new system to allow shippers to pay the newly-imposed duties, according to its website.
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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 deliveries directly from Australia to the US by consumers and businesses will be unaffected.
“The United States Government recently announced significant changes to its import tariff rules that will impact customers sending items from Australia to the US,” the spokesperson said in an emailed statement. “This is moving very quickly, and we are working at speed and around the clock to find a solution for our customers.”
The White House and CBP did not immediately respond to requests for comment.
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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 US$80 to US$200 per item, but only for the next six months.
CPB did offer some additional instruction to shippers on Thursday, when the agency issued guidance certifying two companies to collect and pay duty 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.
