Just today, DHL Express announced that it will stop delivering to the U.S. for shipments valued at more than $800. This announcement would be a welcome change after the previous Trump administration raised customs barriers. This decision is a small but important step in the Agency’s larger efforts to address the harmful delivery of low-value, “elusive” packages. It is especially laser-focused on shipments originating in China and Hong Kong. The new changes, described in a fact sheet, are intended to tackle concerns about the synthetic opioid supply chain.
Recent changes to customs law have raised the “de minimis” threshold. Until now, this rule meant that packages valued up to $2,500 could enter the U.S. without most of the paperwork required of other shipments. This rule made it easy for low-value items to be imported into the U.S. without duties, serving as a windfall for many online retailers. The White House has asserted that this has allowed “many shippers” in China to use this rule to evade regulations.
Thanks to much stricter customs inspections, the bar for entering the U.S. with no paperwork has raised particularly low. Manufacturers and companies like Shein and Temu are concerned about increasing costs. They threaten that as a result of these new rules they will be forced to dramatically increase costs to consumers.
DHL is working to counteract the added red tape by providing on-demand, formal customs clearances 24 hours a day. The company said it faced a “substantial unexpected spike” in administrative burden. This unprecedented increase has rendered it unfeasible for them to continue providing these high-value packages.
The White House has taken steps to address the flood of synthetic opioids. Officials are right to focus on the dangers posed by fentanyl, which has become the most pressing drug threat facing the United States. The administration emphasized its commitment to “addressing the synthetic opioid supply chain,” indicating that these regulatory changes are intended to mitigate illegal drug trafficking.
In a statement regarding the situation, a representative from Hongkong Post criticized the U.S. stance, stating, “The US is unreasonable, bullying and imposing tariffs abusively.” This long-lasting tension between the U.S. and China regarding trade policies still has a strong impact on logistics and shipping today.
As of April 27th, Hongkong Post has suspended sea shipments to the U.S. They have ended the acceptance of parcels with final destination America. This move is indicative of a larger trend among shipping companies responding to the changing regulatory environment.