Royal Mail restarts US parcel service – for an extra fee

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Royal Mail has become the first international postal operator to launch new services for customers sending parcels to the United States, in anticipation of new customs requirements.

From today, customers can access the company’s new postal delivery duties paid (PDDP) services.

This proactive step follows a US executive order issued last month, which mandates that from August 29, goods valued at $800 or less will no longer be exempt from import duties and taxes.

Explaining the new services, Iain Johnson, managing director international at Royal Mail, said: “We have been working hard with the relevant US authorities and our international partners to adapt our services in a very short timeframe.

“Our UK-based customers, whether consumers or businesses, can now send items to the US through all of our usual channels, including online and the Post Office, in time for the new customs requirements which come into effect on August 29.”

He added: “Now, with just a few exceptions, all goods entering the USA will attract duties which will need to be paid to the US customs authorities, a process that will be handled by Royal Mail.

“This is a change to the previous rules where all goods under a value of 800 dollars could enter the US duty free.”

Royal Mail customers can use the company’s new postal delivery duties paid (PDDP) services to send items to the US
Royal Mail customers can use the company’s new postal delivery duties paid (PDDP) services to send items to the US (PA Archive)

Royal Mail previously said postage pricing will remain the same, but will add 50p per parcel handling charge to “cover the additional costs associated with providing clearance services into the USA”, which will be invoiced as a handling fee.

A spokesperson told The Independent: “We have been working hard with US authorities and international partners to adapt our services to meet the new US de minimis requirements so UK consumers and businesses can continue to use our services when they come into effect.

“Consumers sending gifts worth less than $100 will not have to pay duty.”

Earlier this week, Royal Mail announced it had temporarily suspended accepting parcels to the United States after Donald Trump’s administration decided to scrap a customs tax rule that allowed low-value packages to enter duty-free.

The president said last month that packages valued at or under $800 (£600) sent to the US would face applicable duties from this Friday, ending a loophole known as the “de minimus” exemption.

It means commercial shippers of low-value items will have to pay the same tariff rate as for other goods from the same country of origin. Items made in the UK will be subject to a 10 per cent tariff, while those from the EU will face a 15 per cent levy.

However, gifts sent that are worth less than $100 (£75) will continue to be exempt, along with the sending of cards and letters that do not require a customs declaration.

Royal Mail had joined other European postal services in pausing shipments to the US from Tuesday, allowing time for packages to arrive before the duties begin.