BREAKING: Postal traffic to the United States has plunged by a staggering 81% following the end of the duty-free de minimis exemption for low-value packages, according to a release from the Universal Postal Union (UPU) issued August 29, 2023. This sharp decline poses an urgent threat to international e-commerce and small businesses across the globe.
The UPU’s latest data reveals that shipments from its member countries to the U.S. dropped dramatically compared to the previous week. The ending of the de minimis exemption, which previously allowed packages valued under $800 to enter the U.S. without customs duties, has forced many postal operators to halt or suspend services. A total of 88 postal operators have reported suspensions as they scramble to adapt to these new regulations.
Why This Matters: The suspension of low-value parcel shipments risks severe disruptions in supply chains, delays in consumer goods, and unexpected costs for both merchants and shoppers.
“The UPU has in its mission the responsibility to guarantee the free circulation of postal items over a single postal territory,”
stated UPU Director General Masahiko Metoki. He assured that the organization is urgently developing a technical solution to facilitate deliveries to the U.S. once again.
Many countries have paused U.S.-bound parcels, highlighting the scale of disruption in global commerce. The changes were implemented as part of broader tariff reforms under the Trump administration, which argued that the de minimis exemption was being exploited to evade customs duties.
The U.S. Customs and Border Protection (CBP) agency is now responsible for collecting duties on all incoming parcels. Postal operators may either collect ad valorem duties or use a temporary flat-fee option during this transitional period. Meanwhile, letters and gifts valued under $800 continue to be delivered.
To mitigate the chaos, the UPU has deployed a new landed-cost calculator API, which automates the calculation of all costs associated with shipping, including duties and taxes. This tool aims to support postal operators in integrating a Delivered Duty Paid (DDP) solution into their customs systems.
What Happens Next: The UPU plans to provide procedural support and training to postal operators, who must connect with CBP-approved parties to collect duties at origin. The transition period is set to continue until February 28, 2026, requiring full compliance with the new duty collection protocols. Failure to adapt could lead to ongoing service suspensions.
White House Trade Adviser Peter Navarro remarked, “Ending the de minimis loophole will save thousands of American lives by restricting the flow of narcotics and dangerous items, while also adding billions in tariff revenues.” This statement underscores the administration’s belief in the necessity of these changes, despite the immediate economic repercussions.
As the situation develops, stakeholders are urged to monitor updates from the UPU and CBP for guidance on navigating this new landscape of international shipping. The impact of these changes will be felt widely, affecting consumers, businesses, and postal services alike.