Duty-free no more: Parcels worth under US$800 no longer qualify for US tariff exemption

NEW YORK (AP) — Low-value imports lost their duty-free status in the United States on Friday as part of President Donald Trump’s agenda for making the nation less dependent on foreign goods and resetting global trade with tariffs.

An executive order eliminated a widely used customs exemption for international shipments worth $800 or less as of 12:01 a.m. Eastern Daylight Time, nearly two years earlier than the deadline set in the tax cuts and spending bill approved by Congress.

Saying they received too little time and information to start collecting duties on small parcels, the national postal services of more than 30 countries have temporarily suspended sending some or most US-bound packages. They include the mail systems of Australia, New Zealand, India, Japan, Mexico, Thailand and almost every country in Europe.

Purchases that previously entered the US without needing to clear customs will require vetting and be subject to their origin country’s applicable tariff rate, which can range from 10% to 50%.

For the next six months, mail carriers can instead apply a flat duty of $80 to $200 to packages sent through the global postal network.

After that, both mailed parcels and those handled by private courier services will be subject to the value-based tariff rate.

Although the president previously ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. In addition to bringing new costs, the withdrawal of duty-free treatment is likely to delay orders, according to logistics experts.

The Trump administration says the exemption has become a loophole that foreign businesses exploit to evade tariffs and criminals use to get drugs, counterfeit products and other contraband into the US.

Former President Joe Biden and members of Congress also discussed the issue.

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