In a “service update” on its US website, DHL Group said that it would “temporarily suspend the collection and shipping of business-to-consumer (B2C) shipments to private individuals in the United States where the declared customs value exceeds USD 800”. The statement continued, “shipments- both B2B & B2C – with a declarable customs value below USD 800 are not affected by the suspension”. However, ‘business-to-business’ shipments with a declarable value “above USD 800 are not affected by the suspension, though they may also face delays”.
The explanation given by DHL for these service suspensions was that on that 5th April “all shipments to the U.S. with a declared customs value over USD 800 require formal entry processing – down from the previous USD 2,500 threshold due to new U.S. Customs regulations”. This resulted in a “surge in formal customs clearances, which we are handling around the clock”. DHL cannot even guarantee a service level for higher-priced consignments, stating that whilst it is “working diligently to scale up and manage this increase, shipments over USD 800—regardless of origin—may experience multi-day delays”.
In other words, the clamp-down on the perceived abuse of the ‘de minimis’ exemption has made US Customs far more onerous to deal with. The systems are not in place to cope with this and congestion is the result.
DHL is not the only company to encounter problems. Mail consignments from Hong Kong have already encountered problems, with Hong Kong Post already having announced suspensions in services to the US over the issue of de minimis, whilst UPS and FedEx have both introduced fees for handling consignments from China into the US.
Although DHL asserted that suspensions on certain categories of freight are temporary, it seems logical that the regulatory framework for cross-border trade has changed permanently. Quite possibly more advanced customs systems may improve the ability to collect data on smaller consignments, but the pattern of trade is likely to change. Indeed, this is the US Government objective.
Author: Thomas Cullen
Source: Ti Insight
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