US Postal Service 'confused' by decisions on Chinese goods

(CLO) The US Postal Service (USPS) announced on Wednesday (February 5) that it will continue to accept packages from China, reversing its previous suspension decision.

The abrupt change has left retailers and shipping companies scrambling, as they try to adjust to the Trump administration's new 10% tariff on all imports from China, as well as the end of the "de minimis" tax exemption for packages valued under $800.

A USPS delivery vehicle in the US. Photo: Atomic Taco

“We’re like headless chickens running around trying to figure out what’s going to happen next. Maybe in two weeks, things will be back to normal,” said Martin Palmer, co-founder of Hurricane Commerce, a company that provides cross-border e-commerce data.

Previously, parcels under the “de minimis” policy were often consolidated so that customs could process hundreds or thousands of packages at once. However, under the new rules, each package will have to go through customs separately, significantly increasing the workload for postal services, brokers and customs officers.

The policy was originally designed to simplify the commercial process, but the need for its use has increased dramatically due to the explosion of online shopping.

According to data from the US Customs and Border Protection, about 1.36 billion shipments were imported into the US under the "de minimis" policy in 2024, up 36% from 2023.

Several international shipping companies, including FedEx and SF Express (China’s largest express delivery company), have confirmed that they continue to ship packages to the U.S. However, FedEx said it has suspended its refund policy for shipments to the U.S. since January 29, citing recent regulatory changes.

Fast fashion retailers like Shein and low-cost online store Temu have grown rapidly in the US thanks to the “de minimis” duty-free policy. According to a report by the US Congressional Commission on China in June 2023, the two companies could account for more than 30% of all packages shipped into the US under this policy. The report also found that nearly half of all packages imported into the US under “de minimis” originate from China.

Cao Phong (according to NBC, The Guardian, CNA)

Source: https://www.congluan.vn/buu-chinh-my-hoang-mang-truoc-cac-quyet-dinh-ve-hang-hoa-trung-quoc-post333238.html