Postal traffic to U.S. plunges 70% for a full 5 weeks after end of 'de minimis' exemption | Fortune
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Postal traffic to U.S. plunges 70% for a full 5 weeks after end of 'de minimis' exemption | Fortune
""Postal services are essential services," said Lati Matata, Director of the UPU's Postal Technology Centre, in a statement. The technology, an application programming interface, or API, will allow "every postal operator in (UPU's) network - no matter how big or small - to meet customs requirements to ensure that citizens worldwide, including U.S citizens, receive their postal items," Matata said."
"In September, the Universal Postal Union reported 88 of its 192 member countries had suspended all or some of its postal services to the U.S. to have time to adjust their shipping procedures. On Friday, the UPU said "only a handful" of those had resumed operations to the U.S. The organization said traffic to the U.S. on Oct. 3 was down 70.7% compared with volume one week before the regulatory changes."
"Since the exemption ended, purchases that previously entered the U.S. without needing to clear customs now require vetting and are subject to their origin country's applicable tariff rate, which can range from 10% to 50%. While the change applies to the products of every country, U.S. residents will not have to pay duties on incoming gifts valued at up to $100, or on up to $200 worth of personal souvenirs from trips abroad, according to the White House."
Ending the U.S. de minimis exemption on Aug. 29 triggered disruptions in international postal flows. Many postal operators suspended shipments to the U.S. to adjust to new customs procedures; 88 of 192 UPU members halted all or some services in September and only a handful had resumed. Postal volume to the U.S. fell about 70% by Oct. 3 compared with the week before the regulatory changes, and had plunged 81% when the exemption ended. The UPU is deploying an API via its Customs Declaration System to help members calculate, collect and remit duties. Tariff rates now apply and can range from 10% to 50%.
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