Worldwide duty-free deals eliminated by the United States government

In a significant change to its customs regulations, the U.S. government has enforced new duties for goods in "De Minimis" parcels, effective as of Friday. This means that recipients must now pay duties for these parcels, or an alternative fee of between $80 and $200 can be paid for a six-month transition period.

The new regulations have sparked controversy, with the White House criticising traditional postal services for restricting shipments to the U.S. This restriction has led to a surge in the use of express courier services like DHL Express, FedEx, and UPS, which have expanded their international parcel transport to the USA since July 2022.

Interestingly, more than 90% of "De Minimis" parcels are already being transported by these express couriers. The U.S. government claims that Chinese senders are looking for alternative routes through other countries, and this shift in delivery services could be a response to the new regulations.

There is, however, an exception for "true" gifts with a value below $100. The number of daily low-value parcels from China to the U.S. dropped from four million to one million after duty-free status was abolished. Since May, $492 million in duties have been collected on these parcels.

In light of the new regulations, the White House suggests that regular postal services should focus on collecting and sharing more information about the contents of the parcels with U.S. authorities. If regular postal services decide to stop shipping to the U.S., express providers are expected to take over their business.

This shift in delivery services could have far-reaching implications for both the U.S. and Chinese economies, as well as for consumers and businesses alike. As the situation continues to evolve, it will be interesting to see how both countries and the delivery services adapt to these changes.