DHL is experiencing so many delays at U.S. customs processing points that it is temporarily halting business-to-consumer (B2C) shipments into the country that exceed $800.
The suspension is effective Monday. DHL has not indicated when it will lift the suspension.
The multiday delays are a result of a surge in formal customs clearances since April 5, when U.S. Customs and Border Protection (CBP) brought down the threshold requirement for a parcel to go through formal entry processing from $2,500 to $800. The change went into effect for shipments out of all countries.
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The logistics giant said it is handling the clearances “around the clock” and “working diligently to scale up and manage this increase.”
Amid the drama of steep 145-percent tariffs President Donald Trump has slapped on China and the 10-percent baseline tariffs levied on dozens of other countries, as well as the closure of the de minimis provision for China-originated parcels starting May 2, the CBP’s lowering of the formal entry threshold has largely stayed under the radar.
Those changes, like Trump’s sweeping tariffs, are being implemented under the powers granted by the International Emergency Economic Powers Act (IEEPA). Each shipment must now undergo individual formal clearance when entering the U.S.
All formal entry shipments are subject to import customs duties based on the Harmonized Tariff Schedule, which may include general duty rates, Section 301 duties, and applicable IEEPA duties.
Additional information and/or supporting documentation may be required for processing, including proof of the goods’ country of origin. All formal entries must include the ultimate consignee’s tax identification number, which can be either a social security number or an employer identification number.
Prior to April 5, all packages with a declared value between $800 and $2,500 could be cleared using a simplified and expedited informal entry process. Informal entries usually require fewer documents like a commercial invoice, and no customs bond.
Business-to-business (B2B) shipments valued at more than $800 will not be suspended, although they are still subject to delays, DHL warned. Shipments across B2B and B2C that are below $800—the value of compliance under the expiring de minimis threshold—will not be suspended.
End of de minimis leads Hongkong Post to suspend low-value shipments to U.S.
DHL’s move is yet another consequence of the escalated trade war between the U.S. and China.
The temporary policy change follows that of Hong Kong’s postal office, which indefinitely suspended the shipment of low-value parcels into the U.S. on Wednesday due to the closure of de minimis and the added tax on each delivery.
Packages that would have qualified for de minimis will be subject to a duty rate of up to 120 percent of their value or $100 per parcel beginning on May 2. This rate will rise again to $200 per parcel beginning on June 1.
For H.K.-based senders that shipped out a package that had yet to leave for the U.S. via ocean carrier, Hongkong Post would arrange for a product return and refund starting April 22.
The post office will suspend the acceptance of parcels delivered to the U.S. via air beginning April 27.
“The U.S. is unreasonable, bullying and imposing tariffs abusively,” Hongkong Post said in a Wednesday statement. “The Hongkong Post will definitely not collect any so-called tariffs on behalf of the U.S. and will suspend the acceptance of postal items containing goods destined to the U.S.”
Hongkong Post warned that Hong Kong residents should be prepared to pay “exorbitant and unreasonable” fees due to the new tax.
Mail that only contains documents will still be processed and sent to the U.S., the post office says.
With the ban, Hong Kong residents and businesses will now have to pay couriers such as DHL, FedEx and UPS to deliver packages, further driving up costs for senders and consumers alike.
UPS and FedEx have had their own way of dealing of the U.S.’s changes in trade policy with China, tacking on individual fees on shipments out of the country.
UPS reinstated a 29 cents-per-pound “surge fee” surcharge on all parcels from China, Hong Kong and Macau, reviving a charge used for two weeks in March. FedEx had its own demand surcharge that added 45 cents-per-pound for every import out of China, Hong Kong and the Philippines, which will be kept in place until the de minimis deadline of May 2. The extra FedEx cost includes a $1 minimum charge for each parcel shipment.
Both companies levied more expensive variations of these fees from September to January as air shipments out of China were elevated for the peak holiday season.
