Australia Post pauses US-bound parcel shipments

Australia Post pauses US-bound parcel shipments

Packages worth US$800 or less shipped to the US will face duties from August 29 as the 'de minimis' exemption ends.

Australia Post
Australia Post sought a workable solution after the US scrapped a customs rule allowing duty-free low-value imports. (Australia Post pic)
SYDNEY:
Australia’s postal service said on Tuesday it had temporarily suspended parcel shipments to the US after President Donald Trump’s administration decided to scrap a customs tax rule that allowed low-value packages to enter duty free.

The Australian government-owned Australia Post’s move comes after several European carriers, including Swiss Post and DHL, which runs Germany’s postal service Deutsche Post, paused shipments to the United States because of the new rules.

“We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers,” Australia Post said in a statement.

Packages sent to the US and Puerto Rico lodged on or after Aug 26 will not be accepted until further notice, the postal service said. Gifts under US$100, letters and documents are unaffected by the change.

Australia Post said it would continue to work with the US and Australian authorities, and international postal partners to resume services to the US soon.

The US government said last month that packages valued at or under US$800 sent to the United States will face all applicable duties from Aug 29 as it suspended a “de minimis” exemption for low-value shipments.

Goods shipped through the postal system will face one of two tariffs: either an “ad valorem duty” equal to the effective tariff rate of the package’s country of origin or, for six months, a specific tariff of US$80 to US$200 depending on the country of origin’s tariff rate.

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