SYDNEY: Australia Post has temporarily suspended parcel shipments to the United States following a new US customs rule eliminating duty-free entry for low-value packages.
The government-owned postal service announced the suspension after President Donald Trump’s administration scrapped the “de minimis” exemption previously allowing parcels under $800 to enter without duties.
“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.
This decision aligns with similar moves by European and Asian postal services including Swiss Post, DHL, Japan Post and Korea Post.
The new US rules effective from August 29 will impose either ad valorem duties matching origin country tariff rates or specific tariffs ranging from $80 to $200 for six months.
Packages addressed to the US and Puerto Rico lodged from August 26 will not be accepted until further notice, though gifts under $100, letters and documents remain unaffected.
Australia Post confirmed it would continue working with US and Australian authorities and international partners to resume services promptly.
Monash University Senior Lecturer Nicola Charwat noted Australian small businesses selling directly to US consumers would feel the greatest impact.
“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 suspended some US-bound items on Monday, though Economy Minister Ryosei Akazawa described the impact as limited due to alternative shipping options.
South Korea has stopped shipping packages to the US though customers can still use its partnership service with UPS.
FedEx’s Australian operations continue accepting US shipments unaffected by postal service decisions.
“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. – Reuters