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Newscasts - Global postal services suspend US-bound mail after US ends de minimis rule

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Source: 'Reuters - Business videos'

Description: Numerous global postal, including Japan Post, Australia Post and Taiwan have suspended accepting some postal items to the United States, due to U.S. President Trump's order to terminate the global "de minimis" exemption, a rule exempting low-value items from customs duties. Francis Maguire reports.

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Video Transcript:

A host of global postal services temporarily suspended parcel shipments to the US early this week. Taiwan's national postal provider, Japan Post and Australia Post were among a number to take action. They did so after President Donald Trump's Administration cancelled a customs tax rule that allowed low-value packages to enter duty free. Ko Ching-Chang is a Director at Taiwan's Chungwha Post.

This issue is one that postal services around the world are facing together. It mainly stems from airlines being unable to carry out such shipments due to the tariffs involved. As a result, we had no choice but to make a difficult decision. That's why, as of yesterday, we officially ceased handling low-value duty-free parcels, and starting today, we are suspending the acceptance of such items.

The US government last month moved to suspend a de minimis exemption for low-value shipments. It said packages valued at or under $800 sent to the country would face all applicable duties from August 29. Goods shipped through the postal system would face one of two tariffs. One is a duty equal to the effective tariff rate of the package's country of origin. Or a specific duty of $80 to $200 depending on the country of origin's tariff rate. Several European carriers also temporarily suspended parcel shipments. It included Swiss Post and DHL which runs Germany's postal service Deutsche Post.

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