An Post will not suspend parcel services to the US

Postal firms around the world have suspended shipments over confusion around new taxes

A large number of parcels being posted from Ireland to the US are gifts with stated values lower than $100. File Picture: Gerard McCarthy

An Post said it will maintain the delivery of parcels to the US despite the looming taxes from the Trump administration of low-value packages.

The US said last month it would suspend the global "de minimis" exemption, which also allows minimal paperwork, for international shipments under $800, effective August 29.

As a result, a number of postal groups across Europe have suspended parcel services to the US including companies in Germany, Scandinavia, Austria and Belgium.

The new directive means all parcels originating in Europe and containing goods, must have taxes paid before they can enter and be delivered in the US. The only exceptions to this new ruling are traditional letters, documents and parcels containing gifts valued at less than $100 or €85.

Washington’s long-standing de minimis policy had allowed parcels packed with cheap items to flow into the US from around the world with little interruption or oversight, fueled by consumer demand for bargains and immediacy. Trump’s White House claims it’s a loophole used to evade tariffs and funnel illegal drugs.

While a large amount of parcels being posted from Ireland to the US are gifts with stated values lower than $100, this ‘de minimus’ cessation by the US administration is likely to disrupt some Irish trade into the US, and risks causing confusion, delay and inconvenience for sending and receiving customers, An Post said.

"Rather than simply suspend all parcel services to the US, as some other European postal carriers are planning, An Post is actively seeking a solution for Irish companies selling into the US through the postal service so that we can support them and the Irish economy by keeping trade routes open," the company said in a statement."

"This will involve the receiving US customers having to pay the required duties locally before delivery can be completed. We want to assure Irish customers that we are working on their behalf and will advise them of the new arrangements for their US parcels in the coming days. An Post is also directly contacting Irish business customers who sell goods into the US through the postal service."

An Post said the new rules only affect mail items containing goods and will not impact regular letters or documents. "Traditional letters and cards to the US will be carried as normal, as will clearly marked personal gifts up to a value of $100 (€85) – provided all the necessary customs documentation has been completed at the Post Office."

German postal services group DHL said on Friday it would suspend the shipment of standard parcels for businesses to the United States.

“Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the US Customs and Border Protection will be carried out,” DHL said in a statement.

The service interruptions highlight the seismic impact from Trump’s decision to eliminate the de minimis exemption and raise concerns that cheap goods — especially those from China — will flood into other economies given the new barriers in the US.

Additional reporting Bloomberg