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Royal Mail has temporarily suspended accepting parcels to the United States after Donald Trump’s administration decided to scrap a customs tax rule that allowed low-value packages to enter duty-free.
The president said last month that packages valued at or under $800 (£600) sent to the US would face applicable duties from this Friday, ending a loophole known as the “de minimus” exemption.
It means commercial shippers of low-value items will have to pay the same tariff rate as for other goods from the same country of origin. Items made in the UK will be subject to a 10 per cent tariff, while those from the EU will face a 15 per cent levy.
However, gifts sent that are worth less than $100 (£75) will continue to be exempt, along with the sending of cards and letters that do not require a customs declaration.
As a result of the changes, Royal Mail has joined other European postal services in pausing shipments to the US from Tuesday, allowing time for packages to arrive before the duties begin.
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An executive order from Donald Trump means an exemption on tariff duties for low-cost packages sent to the US is coming to an end (Chip Somodevilla/Getty Images)
It will launch a new service – US Postal Delivered Duties Paid – for packages sent to the US, expected to open on Thursday.
The organisation said postage pricing will remain the same, but Royal Mail will add 50p per parcel handling charge to “cover the additional costs associated with providing clearance services into the USA”, which will be invoiced as a handling fee.
A spokesperson told The Independent: “We have been working hard with US authorities and international partners to adapt our services to meet the new US de minimis requirements so UK consumers and businesses can continue to use our services when they come into effect.
“Consumers sending gifts worth less than $100 will not have to pay duty.”
The move is likely to have a major impact on e-commerce companies exporting low-value goods to the US, with around 1.4 billion packages entering the country under the existing loophole last year.
Meanwhile, postal services in other countries facing higher tariffs for exports to the US have also taken action.
DHL, which owns Deutsche Post, said it would “no longer be able to accept and transport parcels and postal items containing goods from business customers” destined for the United States.
A spokesperson said: “Key questions remain, particularly regarding who will have to pay the tariffs and how, what additional data will be required, and how data will be transmitted to US Customs.”
Asian postal services, including SingPost and India’s Department of Posts, also announced plans to halt shipments to the US, as well as the Australian government-owned Australia Post.
A company spokesperson said: “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.”