The United States Postal Service on Wednesday reversed course and said it had resumed accepting packages originating in Hong Kong and China.
The move came on the heels of a 12-hour suspension that roiled the eCommerce industry in those two countries as well as in companies that are heavily dependent on the inexpensive parcels from Asia.’
The increased scrutiny and processing time for all low-value incoming packages from China regardless of value. It also means that, for the first time, there will be tariffs on smaller-value packages. It also means that, companies that never before had to deal with U.S. Customs in order to clear their shipments will have to start doing so.
The reversal reflects the challenge that shipping and delivery companies will face as a result of President Trump’s executive order that requires greater inspection of packages.
Still, many shippers and even customers expect that the disruptions may still occur as the USPS works out how tariffs on small packages would be collected in tandem with the U.S. Customs and Border Protection department.
Meanwhile, FedEx suspended its money-back guarantee on overseas shipments as disruptions ripple through the supply chain. Indeed, one logistics executive said CBP at New York’s John F. Kennedy (JFK) International Airport is putting a hold on all incoming shipments from China until further notice.
The move had been in response to President Trump’s executive order that increases tariffs on good from China that, not only imposes an additional 10% tariff on goods from China but also ends a key import tax exemption, one that has enabled the rise of Chinese ecommerce platforms such as Temu and Shein.
Known as the de minimis rule, the exemption allows goods valued under $800 to be shipped directly to American consumers without incurring import duties, customs declarations, or extensive inspections. Its origins go back to 1938.
This waiver was originally intended to exempt personal gifts and other small items that Americans send home from trips abroad. However, it has since allowed foreign businesses to more easily sell goods to consumers in the United Staters without necessitating that packages from these companies clear U.S. customs and pay customs duties
With the rise of a more global ecommerce market, the number of packages has made it difficult, if not impossible, for the Customs and Border Protection to surveil all packages destined for U.S. residents.
Meanwhile, the number of packages has grown seismically in reccent yearss? According to the CBP, an estimated 1.36 billion de minimis packages – or some 372,000 packages per day – entered the country in fiscal year 2024, almost ten times the number that entered in 2015.
(Photo: Accura Media Group)
