Where Data Tells the Story
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The list of countries where mail carriers have suspended some or all service to the United States in light of the end of the country's "de minimis" rule on August 29 is constantly growing. With the addition of Costa Rica Tuesday, carriers in 67 countries are now restricting or banning U.S. shipments, many saying that they need more time to implement compliance with custom and tax regimes now applicable to all shipments to the country. Previously, shipments with a value of $800 or less had been exempt. The move is hurting big enterprises like Shein, whose business model consists of shipping merchandise directly from producing countries to U.S. customer in small parcels, but also independent sellers on sites like Etsy, or - in the case of document shipments - migrants and those with family or business ties in the U.S. and other countries.
The "de minimis" exception for China and Hong Kong already ended on May 2. While Hong Kong has suspended shipments, China has not done so. According to reports, major small parcel sellers from the region have pivoted to bringing in bulk shipments from Asia to the U.S. - currently at a tariff rate of 30 percent - to avoid higher duties collected on small parcels. Between May 2 and May 12, air freight between China and the U.S. normally used by small parcels had already dropped by 39 percent, Reuters reported.
In the case of a handful of countries, personal gifts up to a value of $100 can still be shipped. Some express and courier services with other compliance models in place might still be functioning, but use is also sometimes restricted, depending on the country.