Thousands of berets and other small goods are stranded after national postal services paused US-bound parcel delivery ahead of the end of the de minimis tariff exemption for packages under $800. US Customs handles millions of de minimis shipments daily, and the policy change will subject all packages to duties. Postal operators from at least 25 countries paused shipments citing confusion and the need to implement paperwork systems. Small retailers face cancelled orders, refunds, paid inventory they cannot ship, and potential losses, while private couriers remain an expensive alternative for many exporters.
In a warehouse in New Zealand, thousands of berets sit in limbo. The caps belong to Daan Kolthoff, the founder of South Pacific Berets. Kolthoff has spent nearly two decades running the beret retailer, where 85% to 90% of buyers are from the US. That pipeline has suddenly shut off. Last week, New Zealand's national postal service - along with many others worldwide - paused US-bound parcel delivery.
From Friday, all package deliveries to the US will face duties, prompting the postal carriers of at least 25 countries to pause package deliveries to the US. There are exceptions, including documents and personal gifts valued up to $100. Postal operators cite confusion over processes and say they need time to implement systems for the extra paperwork. It's unclear when shipping will resume.
He refunded under $2,000 worth of orders to US-based customers in recent days and is bracing for more losses by the end of the month. "The first thing for me to do was cancel existing orders, give information to customers; however, there was very little information to give," Kolthoff told Business Insider. "It's very unclear how long it would last - whether it's a matter of days, weeks, or months. And that is still the case."
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