Australia Post pauses U.S.-bound parcel shipments

Australia Post delivery vehicle (source: Australia Post)

Australia’s postal service said on Tuesday it had temporarily suspended parcel shipments to the United States after President Donald Trump’s administration decided to scrap a customs tax rule that allowed low-value packages to enter duty free.

The Australian government-owned Australia Post’s move comes after several European carriers, including Swiss Post and DHL DHLn.DE, which runs Germany’s postal service Deutsche Post, paused shipments to the United States because of the new rules.

“We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers,” Australia Post said in a statement.

Packages sent to the U.S. and Puerto Rico lodged on or after August 26 will not be accepted until further notice, the postal service said. Gifts under $100, letters and documents are unaffected by the change.

Australia Post said it would continue to work with the U.S. and Australian authorities, and international postal partners to resume services to the U.S. soon.

The U.S. government said last month that packages valued at or under $800 sent to the United States will face all applicable duties from August 29 as it suspended a “de minimis” exemption for low-value shipments.

Goods shipped through the postal system will face one of two tariffs: either an “ad valorem duty” equal to the effective tariff rate of the package’s country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin’s tariff rate.

(Reporting by Renju Jose in Sydney; Editing by Stephen Coates)