Australia's postal service said today 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 and Asian carriers, including Swiss Post and DHL, which runs Germany's postal service Deutsche Post, Japan Post and Korea Post paused shipments to the US 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.
The US government said last month that packages valued at or under $800 sent to the US would face all applicable duties from August 29 as it suspended a "de minimis" exemption for low-value shipments.
Goods shipped through the postal system would 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 $80 to $200 depending on the country of origin's tariff rate.
Packages sent to the US and Puerto Rico lodged on or after August 26 would not be accepted until further notice, the postal service said. Gifts under $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.
Nicola Charwat, Senior Lecturer at Monash University, said the impact in Australia would be mostly felt by small businesses that sell directly to US consumers.
"This includes businesses specialising in sustainable clothing and gifts, as well as distinctly Australian goods such as cosmetics, food and wine. These parcels will now be subject to a 10% baseline tariff," Charwat said.
Japan Post yesterday said it would suspend accepting some postal items to the US. Economy Minister Ryosei Akazawa said the move would have "only a limited impact" on users as there were alternative shipping methods.
South Korea has stopped shipping packages to the US though customers will be able to send through its partnership service with UPS, Korea Post said last week.
FedEx's Australian business said it continued to accept and transport shipments to the US. "As an express carrier, our international express offerings are not impacted by the decisions of postal operators," FedEx Regional Vice President Peter Langley said in a statement.
But An Post has said it will maintain parcel services to the US, despite the imposition of new taxes from the US government on parcels entering the country.
"Rather than simply suspend all parcel services to the US, as some other European postal carriers are planning, An Post is actively seeking a solution for Irish companies selling into the US through the postal service so that we can support them and the Irish economy by keeping trade routes open," it said.
"This will involve the receiving US customers having to pay the required duties locally before delivery can be completed. We want to assure Irish customers that we are working on their behalf and will advise them of the new arrangements for their US parcels in the coming days," An Post said.
