US Postal Service resumes deliveries from China

The United States Postal Service, commonly known as USPS, has resumed accepting packages from mainland China and Hong Kong after a brief suspension. This suspension was a result of new import tax regulations introduced by President Donald Trump. USPS has stated that it is collaborating with US Customs and Border Protection to ensure that package deliveries experience minimal disruption during this transition. The new trade measures announced by the president include the imposition of tariffs on Chinese goods, which has led to the closure of a loophole that previously allowed small packages valued at $800 or less to enter the US without incurring taxes or fees. Chinese retailers, particularly online giants like Shein and Temu, have taken advantage of this tax exemption to ship low-value items to American consumers, benefiting from similar regulations in the UK and the European Union (EU) to reach millions of customers. The significant increase in the number of parcels shipped under this loophole has raised concerns among domestic retailers, who feel they are being undercut, and has led to worries that governments are missing out on potential tax revenue. Nick Stowe, the chief executive of Monsoon Accessorize, expressed his support for the changes in the US during an interview on the BBC's Today programme. He noted that retailers in the UK, Europe, and the US have long complained that Shein has been exploiting this loophole, avoiding customs duties while building a large-scale business. The changes in the US regarding the tax exemption for low-value products, known as the 'de minimis' exemption, took effect on Tuesday. Initially, the postal service halted the acceptance of parcels from China overnight but resumed operations the following day. USPS stated, 'The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery. ' It is important to note that letters sent from China are not affected by the changes announced by President Trump. Shipping and courier giant DHL has also indicated that it is 'working with our customers, suppliers, and other stakeholders to navigate these changes' to prevent disruptions in supply chains and minimize the negative impact on US importers and consumers. Meanwhile, the EU, which has been considering similar measures to those in the US, announced that Temu and Shein would be held accountable for the sale of unsafe and dangerous products on their platforms. In the EU, retailers benefit from a tax exemption on parcels valued at less than €150, a policy that critics argue gives these companies an unfair advantage. According to the European Commission, 4. 6 billion low-value items worth below €22 were imported into the EU last year, with 91% of these items originating from China, which is double the amount from 2023. The EU has announced plans to increase customs checks on goods shipped directly by e-commerce retailers and will coordinate a joint investigation by the Consumer Protection Cooperation (CPC) Network into Shein, based on suspicions that the company is violating EU consumer protection regulations. Shein has stated that it will cooperate with the CPC agencies and the EU to ensure that consumers can shop online with confidence. 'We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment,' said EU tech chief Henna Virkkunen. In the US, nearly half of all parcels entering the country under the de minimis exemptions were sent from China, according to a 2023 report by the US Congress. Officials have pointed out that the large volume of parcels entering the country through this exemption has made it increasingly challenging to screen them for potentially illegal goods. Changes to the tax exemption in the US were initiated under President Joe Biden, but Trump has gone further by extending tariffs to all goods imported from China, including fashion items and toys. In response to these developments, China has indicated that it will take action and has placed PVH, the US company that owns designer brands like Calvin Klein and Tommy Hilfiger, on its 'unreliable entity' list for alleged discriminatory measures against Chinese enterprises. Trump was expected to speak with his Chinese counterpart, Xi Jinping, in the coming days, but on Tuesday, he stated that he was in 'no rush' to hold talks. Some retailers in the UK have called on their government to take action regarding low-value products being imported into the country without tax. Julian Dunkerton, the CEO of clothing chain Superdry, remarked, 'The rules weren't made for a company sending individual parcels and having a billion-pound turnover in the UK without paying any tax. ' In the UK, shipments valued at less than £135 that are sent directly to consumers do not face import duties, while companies bringing in larger consignments are subject to these duties. Mr. Stowe from Monsoon Accessorize expressed that he does not believe parcels should be stopped, but he emphasized that e-commerce companies should contribute their fair share of taxes. The BBC has reached out to the UK government, Shein, and Temu for their comments. If you are in the US and are concerned about your deliveries from China, you can get in touch with them.