Imposition of Customs Duties on Smaller Shipments by the U.S. Government

The US government has implemented new regulations on international package deliveries, following concerns about the misuse of the duty-free status for low-value packages. The changes, effective from Friday, require applicable duties for the country of origin to be paid on goods or an alternative fee of $80 to $200 for a six-month transition period.

Prior to these changes, the duty-free status for low-value packages from China was abolished in May. This move led to a significant drop in such shipments to the USA, with daily numbers falling from four million to one million. The new regulations are likely in response to President Trump's statement that the "De-Minimis" rule has been exploited to smuggle drugs into the USA.

The White House has also expressed concerns about drug smuggling and has called upon international postal services to collect more information about the contents of packages. More than 90% of "De-Minimis" packages are already handled by express carriers like Fedex or UPS, but the government believes they could do more to prevent the misuse of the postal system.

Express carriers like Fedex and UPS, along with numerous postal service providers worldwide, including DHL, have faced criticism for not taking sufficient measures to prevent the smuggling of dangerous drugs in packages exempt from customs under the de minimis rule. These providers are accused of not adequately capturing or verifying the contents of packages to stop such abuse before the new rules were introduced.

The increase in duty-free package deliveries in recent years can be partly attributed to online shopping platforms like Temu and Shein. The popularity of these platforms has led to a surge in international deliveries, putting additional strain on postal services and express carriers.

International postal services have restricted shipments to the USA due to the anticipated increased workload. The US government claims that international senders, including those from countries other than China, are seeking alternative routes to bypass these restrictions.

However, there is an exception for "true" gifts valued under $100. This exception aims to maintain the spirit of gift-giving while ensuring the security and integrity of US borders.

In conclusion, the new regulations on international package deliveries aim to address concerns about drug smuggling and ensure that applicable duties are paid. The changes have led to a drop in the number of daily packages from China and have put additional strain on postal services and express carriers. The exceptions for gifts and the ongoing efforts of international services to improve their security measures will be key factors in the successful implementation of these new regulations.