U.S. Ends Duty-Free Exemption for Low-Value Imports

(Reuters) – The United States has permanently terminated the “de minimis” exemption, which allowed items valued under $800 to be imported duty-free. This change, effective from Friday, follows President Donald Trump’s executive order citing the exemption as a loophole for tariff evasion and drug trafficking.

The decision impacts global retailers and postal services. They are taking various measures, such as suspending shipments or adjusting services, to comply with the new U.S. customs requirements. There is a six-month transition period allowing postal shippers to pay a flat duty per package.

Overview of Postal Companies’ Reactions:

DHL

DHL Group has imposed what it describes as “probably temporary” restrictions on business shipments to the U.S. via Deutsche Post and DHL Parcel Germany due to uncertainties about customs duties collection and data requirements. The premium DHL Express service remains operational, and the company aims to resume standard postal shipments promptly.

POSTEN BRING

Norway’s state-owned Posten Bring announced on August 20 that it was pausing parcel shipments to the United States. The company indicated that it was unclear how U.S. customs authorities would implement the new rules, and that postal companies in Europe were collaborating to gain clarity.

POSTNORD

PostNord, owned by the Swedish and Danish governments, temporarily halted shipments to the U.S. on August 20, citing insufficient time to adapt to the new customs requirements.

LA POSTE

France’s La Poste suspended standard parcel shipments to the U.S. for businesses on August 22. However, it continues to ship gift parcels valued under $100 between individuals.

AUSTRIAN POST

Austrian Post announced on August 21 that it would halt parcel shipments to the U.S., effective August 26. The company stated that this change poses significant challenges for postal services worldwide when shipping goods to the United States. However, Austrian Post will continue to send gifts valued under $100 via standard parcel, and its premium service, Post Express International, will remain unaffected by the suspension.

JAPAN POST

Japan Post announced on August 25 that it would suspend accepting certain postal items. “The procedures that transport operators and postal operators in each country must follow to comply with these guidelines are not clear,” it stated, “making implementation difficult.” Japanese Economy Minister Ryosei Akazawa noted that the move would have “only a limited impact” on users as there were alternative shipping methods.

AUSTRALIA POST

Government-owned Australia Post temporarily suspended parcel shipments to the U.S. on August 26. It is collaborating with U.S. and Australian authorities to resume services. Nicola Charwat from Monash University highlighted the impact on small Australian businesses exporting to the U.S., which now face a 10% tariff on goods like sustainable clothing and cosmetics.