Customs Chaos: How Parcel Carriers Navigate Post-De Minimis Shipping Disruptions

Customs Chaos: How Parcel Carriers Navigate Post-De Minimis - Customs clearance challenges emerge after de minimis eliminati

Customs clearance challenges emerge after de minimis elimination

Package carriers are reporting significant disruptions in cross-border shipping following the Trump administration’s August 29 elimination of the de minimis exemption, according to industry reports. The trade tool previously allowed sub-$800 imports to enter the U.S. duty and tax-free, but now these shipments face tariffs and stricter entry requirements before reaching domestic delivery networks.

Sources indicate that U.S. Customs and Border Protection is holding some packages for prolonged periods, with occasional cases of disposal occurring when compliance cannot be achieved. The abrupt regulatory change has created challenges for both carriers and importers who previously relied on the exemption for low-cost international shipments., according to according to reports

Carrier responses to customs compliance issues

According to statements from major parcel carriers, each company has developed distinct approaches to handling packages that encounter customs clearance problems. UPS reportedly stated that its brokerage team clears more than 90% of packages on their first entry day, but acknowledged that some shipments face hurdles due to missing or incomplete information.

Analysts suggest that standard freight shipments typically have 15 days to clear customs before disposal becomes a compliance option. “All of this is an implication of the abrupt changes to de minimis,” said Rathna Sharad, CEO and founder of cross-border shipping platform FlavorCloud, according to the report.

Varying carrier policies on rejected shipments

UPS customs resolution process, according to industry experts

UPS stated that during customs holdups, it makes multiple attempts to contact shippers for necessary information. When packages cannot be cleared, the carrier offers two options: return to sender at the shipper’s expense or disposal if the package is considered abandoned under U.S. customs regulations., according to recent innovations

FedEx approach to clearance issues

FedEx reportedly works with shippers to update customs paperwork when CBP officials reject or require additional information. In rare cases where clearance remains problematic, shippers can choose between package return or disposal, with recipients notified according to shipper direction.

DHL Express alternative strategy

DHL Express takes a different approach, according to their statement, avoiding package disposal entirely. Instead, the company attempts to gather missing information within 10 days, then returns unsuccessful shipments to origin before the 15-day compliance deadline.

Impact on consumers and importers

The report states that the post-de minimis customs complications have resulted in surprise fees and unexpected package disposals for consumers. These challenges come at a particularly difficult time as importers prepare for the peak holiday shipping season while working to maintain customer satisfaction.

Experts suggest that a significant shift under the new regulations designates U.S. buyers as the importer of record for many cross-border shipments. This transfers responsibility to end customers for releasing goods from customs and paying incurred fees, potentially leading to purchase abandonment and refund requests.

Expert recommendations for smoother shipping

Industry analysts recommend several strategies to mitigate customs clearance problems in the post-de minimis landscape. Shippers should work closely with brokers and carriers to ensure import paperwork includes critical information such as 10-digit Harmonized System commodity codes and accurate country of origin documentation.

Foreign merchants may consider establishing themselves as foreign importers of record or working with third-party customs brokers to manage clearance on behalf of customers. “If you are a legitimate shipper and you want to streamline the process, you should get set up as a non-resident importer,” said Thomas Taggart, VP of global trade at international shipping provider Passport, according to the report.

The elimination of de minimis has fundamentally altered the cross-border shipping landscape, requiring both carriers and shippers to adapt their processes to navigate the new customs compliance requirements successfully.

References & Further Reading

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