"Over the last few months, we've been seeing a lot of UPS shipments, in particular, becoming stuck and being lost or disposed of This all stems from the ending of the de minimis, said Wasserbach. Their [UPS's] whole business model changed once the de minimis was ended. And they just didn't have the capacity to do the clearance a lot of people are expecting to receive international packages, and they're just never gonna get them."
"Since 2016, the de minimis trade exemption determined that packages worth $800 or less were not subject to taxes and tariffs. According to US Customs and Border Protection (CBP), the number of shipments entering the US claiming the exemption increased by more than 600 percent from 139 million shipments in 2015 to more than one billion in 2023. In August, this all changed."
The removal of the de minimis exemption ended tax-free treatment for low-value imports, exposing shipments to duties and tariffs. Claiming of the exemption surged from 139 million shipments in 2015 to over one billion in 2023, greatly increasing customs workload. An August executive order suspended de minimis treatment for all countries, creating new paperwork, valuation and clearance requirements. UPS has struggled to scale clearance operations, causing many shipments to become stuck, lost or disposed of and driving customers to brokers for assistance. FedEx and DHL have navigated the changes more successfully, while consumers face slower deliveries and higher costs.
Read at www.aljazeera.com
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