Universal Postal Union raises alarms over end of tariff exemptions for US shipments

In recent weeks, the United Nations agency responsible for coordinating international mail deliveries, known as the Universal Postal Union (UPU), has been working to address a significant shift in U.S. trade policy regarding low-value imports. This change comes in response to the Trump administration's decision to eliminate the 'de minimis exemption,' effective from Friday, which has allowed imported goods valued at $800 or less to enter the country without incurring customs duties since its inception in 1938. The UPU has communicated its concerns to U.S. Secretary of State Marco Rubio, emphasizing that member countries had not received adequate time or guidance to manage the implications of this new policy, which will require postal services to implement new customs collection procedures. This abrupt policy change has prompted postal operators from over 30 countries, mostly in Europe, to limit or halt shipments of parcels bound for the United States, as they grapple with the complexities of the new customs duties that will now apply. Under the new regulations, purchases that previously entered the U.S. without requiring customs clearance will now necessitate vetting, and the applicable tariff rates may range between 10% and 50%. Additionally, carriers within the global mail network have the option to opt for a flat duty ranging from $80 to $200 per package for the next six months. For U.S. residents, however, there will still be exemptions in place where gifts valued up to $100 and personal souvenirs worth up to $200 from abroad will not be subject to duty. The UPU has indicated that it is dedicated to working alongside U.S. authorities to ensure effective communication regarding the operational requirements stemming from this executive order, as the international postal network relies heavily on efficient deliveries of e-commerce goods. Moreover, the UPU is also focusing on accelerating the development of a system designed to facilitate the charging of applicable duties for foreign businesses wishing to ship goods into the United States.