The U.S. Postal Service recently announced the lifting of its temporary suspension on international inbound packages from China and Hong Kong’s postal systems. This decision came after a brief halt in response to changes in tariffs and the removal of the de minimis exemption for China imports initiated by the Trump administration. The de minimis exemption allowed packages valued below $800 to enter the U.S. duty-free, contributing to the growth of cross-border e-commerce volume.
The suspension, which went into effect on Tuesday, caused uncertainty for shippers navigating the evolving landscape of tariff exchanges between the U.S. and China. While the impact of a prolonged suspension on cross-border e-commerce activity remains uncertain, many companies shipping low-cost goods internationally rely on the Postal Service for the final leg of delivery. It is worth noting that merchandise imported by mail is excluded from the Entry Type 86 Test, as outlined in a recent CBP rule proposal. The Entry Type 86 program, utilized for over 69% of de minimis shipments in CBP’s 2024 fiscal year, plays a crucial role in facilitating international trade.
Despite the temporary disruption caused by the suspension, direct injection shipping methods employed by major e-commerce platforms such as Shein and Temu are not significantly affected. Izzy Rosenzweig, CEO of Portless, clarified that in the direct injection model, packages are not handed over to USPS until they have been fully cleared at local facilities and delivered within the U.S. This model bypasses the international mail system, ensuring a seamless and efficient delivery process.
The Postal Service’s international volume, which includes agreements with foreign postal administrations, experienced a 10% decline year over year in fiscal year 2024 due to various competitive pricing, political, and economic factors. Despite these challenges, the Postal Service continues to adapt to the evolving landscape of global trade and supply chain dynamics.
In conclusion, the lifting of the suspension on international inbound packages from China and Hong Kong by the U.S. Postal Service marks a positive development for cross-border e-commerce and international trade. As businesses navigate the complexities of tariff regulations and supply chain disruptions, it is crucial to stay informed and adapt to changes in the global trade environment. The Postal Service’s commitment to efficient package delivery and collaboration with Customs and Border Protection underscores the importance of maintaining a resilient and agile supply chain in today’s interconnected world.
