Additional Coverage:
- European carriers pause some shipments to U.S. as they prepare for end of ‘de minimis’ exemption (cnbc.com)
Transatlantic Postal Service Disrupted by Trade Rule Change
European postal services are temporarily halting some shipments to the U.S. due to the impending termination of a long-standing trade rule. This disruption comes as countries grapple with the logistical challenges posed by the end of the “de minimis” exemption.
This exemption previously allowed goods valued under $800 to enter the U.S. virtually duty-free. However, a recent executive order effectively ends this practice for all countries starting Friday. While the exemption for goods from China and Hong Kong ended in May, the global extension of this change has prompted European postal carriers to suspend certain shipments.
The affected shipments, primarily those valued under $800, exclude gifts and letters in most cases. Postal services in Germany, Spain, France, Belgium, and several other European countries have announced temporary suspensions.
These pauses are necessary as their systems require significant modifications to comply with the new customs requirements. Many carriers cited uncertainty about duty collection and data transmission processes as key reasons for the disruption.
For example, DHL has stated that Deutsche Post and DHL Parcel Germany will temporarily stop accepting parcels for the U.S., though the more expensive DHL Express option remains available. Similarly, Spain’s Correos, France’s La Poste, and Belgium’s national post office have also announced suspensions, citing the need to adapt their systems to the new regulations. Finland’s Posti initially suspended goods shipments but later expanded the suspension to include gifts and letters due to airline restrictions.
While these suspensions are expected to be temporary and primarily affect smaller orders from European businesses, the changes are unlikely to significantly disrupt larger international commerce. Major retailers typically utilize container shipping and already pay tariffs on their goods. The impact of the “de minimis” change has already been felt by companies like Temu and Shein, which heavily relied on the exemption for shipments from China and have seen demand decrease as prices rise.