Recent changes in U.S. customs regulations have created a new landscape for international shipping, especially for small businesses and e-commerce. A recent executive order has eliminated the "de minimis" rule, which previously allowed packages valued at less than $800 to enter the United States duty-free. This change, aimed at combating illicit trade and leveling the playing field, has triggered a significant response from foreign postal authorities, many of which have temporarily suspended services to the USA.
Why Postal Authorities Are Halting Shipments
The suspension of the de minimis rule has left many international postal networks unprepared. Unlike private express carriers, national postal operators lack the necessary IT infrastructure. The U.S. Customs and Border Protection (CBP) issued new guidelines, but many foreign posts have stated that the procedures for compliance, including the collection of duties and the required data transmission, are unclear.
A new U.S. executive order has suspended the "de minimis" exemption, a rule that previously allowed imports valued at $800 or less to enter the country duty-free. Effective August 29, 2025, all goods shipped to the U.S., regardless of their value, will be subject to customs duties and fees. This change has caused significant disruptions in the international postal system, leading to temporary service suspensions by many postal authorities worldwide.
Canada Post Parcel Service to the USA
Canada Post has not announced a suspension of service to the USA. There has discussion of a system that mandates payment of the 35% (IEEPA ad valorem) duty. Details of this system are not available on Canada Post website (as of August 26th).
International Postal Services Suspending Shipments to the USA
In response to the new regulations and the lack of a clear system for collecting and remitting the new duties, a number of postal services have temporarily halted certain shipments to the U.S.
- India's Department of Posts: Suspended most services to the U.S., citing a lack of clarity on how to implement the new rules and the inability of air carriers to accept shipments.
- European Postal Services: Many postal operators across Europe, including Deutsche Post (Germany), Royal Mail (UK), Poste Italiane (Italy), La Poste (France), and PostNord (Sweden/Denmark), have suspended parcel shipments. The association of European postal operators, PostEurop, noted that there was an "extremely short timeframe to prepare" for the changes, leaving them unable to comply with new data and duty collection requirements.
- Australia Post: Temporarily halted parcel deliveries, stating that the action was necessary due to the complex and rapidly evolving situation.
- Japan Post, Chunghwa Post (Taiwan), and Korea Post (South Korea): These postal services have also suspended some or all parcel shipments, citing the lack of a global system for prepaying customs duties and logistical uncertainties.
How E-commerce Sellers Can Adapt to the New Rules
While the postal network experiences these disruptions, e-commerce businesses can explore alternative shipping and customs clearance strategies to continue serving U.S. customers. Here are two key methods for adapting to the new regulations:
1. Consolidated Information Entry via Express Consignment Facilities
- Instead of relying on traditional postal services, sellers can use an express consignment facility (ECF). These private logistics hubs are designed for high-volume international shipping. By consolidating multiple shipments into a single, comprehensive manifest, sellers can expedite customs clearance.
- How It Works: Rather than each individual package being processed separately, all the necessary information for a consolidated shipment (importer details, product descriptions, values, and duty calculations) is submitted electronically as one entry.
- The Advantage: This approach reduces the processing burden on U.S. Customs and Border Protection (CBP), which can speed up delivery times and reduce the risk of individual packages being delayed or flagged for inspection.
2. Appointing a Local Company as the Importer of Record
- Under the new rules, an importer of record is responsible for ensuring the goods comply with customs regulations and for paying all applicable duties and taxes. E-commerce sellers can partner with a local U.S. company to act in this capacity.
- How It Works: The seller ships their products to their U.S.-based partner (a freight forwarder, a third-party logistics provider, or a customs broker). This partner then serves as the importer of record, handling the customs clearance process and remitting the duties to the U.S. government on the seller's behalf.
- The Advantage: This method takes the customs burden off the international seller and shifts it to a company with established U.S. expertise. It also helps to ensure compliance and can provide a more seamless experience for the end customer, as they will not be faced with unexpected duty fees upon delivery.
- By proactively adopting these strategies, e-commerce sellers can bypass the challenges currently facing international postal networks and ensure their products continue to reach the American market efficiently.
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The Advantage of Express Carriers
This is where the traditional "express clearance" model becomes more vital than ever. The blog post from Jet Worldwide explains that this new environment benefits large private carriers like FedEx, UPS, and DHL. These companies operate under a different set of regulations (Express Consignment) and have the financial and technological capacity to handle the new customs requirements.
Their existing business model is built around:
- Formal Customs Clearance: They have the systems to manage consolidated informal entries, handling the high volume of packages.
- Government System Integration: These carriers have direct, real-time interfaces with CBP systems, allowing them to process millions of transactions daily.
- Financial Resources: They have the financial strength to pre-pay duties and taxes to the government, a process that is now required for many shipments.
The elimination of the de minimis rule effectively levels the playing field, as the previous loophole is now closed. Businesses and consumers who once relied on the simpler, cheaper postal network for low-value shipments will now be forced to turn to these private carriers, who can guarantee compliance and delivery.
Express Clearance: The New Postal Clearance Option?
What This Means for Shippers and Consumers
For international shippers, adapting to this new reality is crucial. The temporary suspension of postal services means that express carriers are now the most reliable option for shipping goods to the United States. While this may come with higher costs, it ensures that your packages will not be caught in customs limbo.
In essence, the new regulations are a massive shift in the global shipping industry. What was once an "option" for express clearance is now a necessity, as traditional postal services navigate the complexities of a duty-heavy environment. As the Jet Worldwide article highlights, this is not just a regulatory change, but an opportunity for private carriers to solidify their position as the preferred partners for international trade to the USA.
