Parcel services from Australia to the US have been suspended with new American tariffs due to take effect later this week.
“As a result of recently announced changes to import tariffs for postal items sent to the US and Puerto Rico, Australia Post will temporarily partially suspend postal services … until further notice,” the service says.
“This response is in-line with action taken by numerous postal operators internationally.”
The suspension is expected to hit Business Contract, MyPost Business and Retail customers using the postal service.
In a statement to the media, Australia Post Gary Starr says they are disappointed to have taken this action.
He told ABC Business: “… a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers.”
(New Zealand, India, Italy, Germany, France, Belgium, Austria and Denmark are among other countries that have also announced similar action.)
PARCEL CHANGES CLARIFIED
The agency says the US government decision to remove the De Minimis Threshold has lifted a US$800 (A$1232) exemption on commercial postings.
Letters, personal documents and gifts under US$100 (A$154) are not expected to be affected.
New mandatory customs declarations have also been imposed: click the following to see what they are for commercial shippers and for retail customers.
In other changes, duties have to be prepaid before postal shipments reach the US.
Australia Post says that any items that missing the new US mandated declarations will be rejected by them and returned to the shipper; it says incomplete declarations will NOT be accepted by the US.
“US Customs & Border Protection (CBP) have advised that the duties and taxes will be collected on goods prior to entering the US and Puerto Rico,” Australia Post says.
The postal agency also says that after postal services resume, business shippers will need a verified account with Zonos to ensure that their shipments are accepted after duties are paid to the CBP.
A $159 dress made in Australia and carrying a Country Of Origin (COO) declaration is expected attract a 10% tariff ($15.90) that will raise the price to $174.90; this price does NOT include an unknown handling fee from Zonos and the cost of shipping postage.
Australia Post points out that goods from other countries as a COO will attract the US tariff rate for that country (like New Zealand which has a 15% rate).
The new tariffs are expected to take effect from this Friday (August 29).
- The Federal Government has listed the steps required to comply with the changes, click here to read them.
EARLIER STORY: Warning on US tariff disruption to global, Aussie exports
