https://wapo.st/4mByS8y
‘De minimis’ loophole is ending; here’s what it means for online orders
Consumers may see higher costs and potential delays as the Trump administration halts an exemption that allowed goods below $800 to enter the country duty-free.
Starting Friday, the United States is erasing an exemption that has allowed low-cost imports to enter the country duty-free for over nine decades. Merchandise worth $800 or less will be subject to an additional 10 to 50 percent levy depending on the tariff rate of the country of origin, according to President Donald Trump’s July 30 executive order. Or they could be subject to a flat rate, ranging from $80 to $200 per package.
Consumers should expect delays or canceled orders, said Maria Pechurina, the director of international trade at Peacock Tariff Consulting. National mail services around the world have suspended certain deliveries to the U.S. as they sort out a system to pay the levy. Meanwhile, only about a half-dozen third-party service providers have been certified by U.S. Customs and Border Protection to collect and pay the duties on international mail. “You will no longer be able to get that overnight, two-day, even five-business-day shipping,” Pechurina said. “Currently, everything is on pause.”
How much will this add to shipping costs?
The extra charges on a package will depend on the methodology used to calculate it, according to the executive order. The duty rate will either match the level of tariff the U.S. has imposed on the country of origin or a specific duty based on the following:
• For countries with a tariff rate of 15 percent or less, such as Britain, each package will incur an additional charge of $80.
• Parcels originating from countries with a rate of 16 to 25 percent will incur an additional $160.
• Countries with a tariff rate of more than 25 percent will face an extra $200.
The rules could put the onus on senders to pay import duties before the shipment leaves for the U.S., Layfield said. Letters, documents and gifts under $100 are exempt — though DHL said in a statement that any parcel declared a gift “will be subject to even stricter controls than before to prevent the misuse of private gift shipments for sending commercial goods.”
