SingPost introduces new postal service for firms as tariff exemption for sending low-value goods to the US set to end on Aug 29

[SINGAPORE] Singapore Post (SingPost) has introduced a new service for corporate customers to send parcels to the US after suspending standard postal services for commercial items sent there.

The latter came into effect on Monday (Aug 25), ahead of the end to the so-called de minimis exemption this Friday.

The company said only letter mail (documents with no declared value) can be sent via post. All other items to the US must be sent via Speedpost Express as it will meet new US regulations, it added in an Instagram post.

Individuals can still send items with commercial value to the US using Speedpost Express service for international deliveries. This option is fully equipped to meet the latest customs requirements, which include duties and taxes payable by the recipient, and helps facilitate the smooth delivery of shipments.

SingPost has also introduced a new service called Speedpost Direct International, tailored for corporate customers. This is in response to the new US regulations.

Its introduction follows temporary postal suspensions globally, with at least 25 countries having halted parcel deliveries to the US according to the Universal Postal Union (UPU) on Tuesday. These countries cited “uncertainties specifically related to transit services” as the reason for their suspension.

US consumers had been able to import cheap goods from overseas under the de minimis exemption, which avoided duties for packages valued under US$800. The exemption was suspended for the entire world last month, following an earlier suspension targeted at China. Parcels will now face the same country-specific tariff rate, which is 10 per cent for Singapore.

The UPU, a United Nations body, added that exceptions apply to certain categories of mail, including documents and bona fide gifts valued up to US$100.

The new Speedpost Direct International service operates on a “delivery duty paid” (DDP) model, where duties and taxes are calculated at the destination and billed back to the sender. This contrasts with the “delivery duty unpaid” (DDU) model where taxes are applied upon arrival, but the recipient is responsible for paying them before the parcel can be delivered.

The service provides businesses with cost savings of as much as 80 per cent compared with Speedpost Express, added SingPost. However, the transit time is slightly longer, at five to eight business days.

SingPost said Speedpost Express is “fully equipped” to comply with the latest US customs requirements and aims for delivery within three to six days.

Global impact

DHL Group said that shipments to the US considered to be gifts and valued under US$100 will be subject to stricter checks. Australia Post added that this exemption only applies to individuals, and not businesses, sending parcels to other individuals.

The UPU said it conveyed member countries’ concerns regarding operational disruption in a letter to US Secretary of State Marco Rubio on Monday. It added that it is also working on finding solutions in parallel.

One such initiative already “in motion” is the accelerated development of a scalable DDP solution that will facilitate duty collection and remittance across the UPU network.

DHL Express Singapore told The Business Times that it will continue to operate parcel delivery services from Asean nations, including Singapore, to the US. FedEx will similarly continue accepting US-bound shipments, adding that its international express offerings are not impacted by the decisions of postal operators.

Online marketplace Etsy recommended that its sellers switch to a DDP shipping option, warning that DDU or delivered at place options could lead to buyers “likely” incurring unexpected costs after checkout.

In response to the end of the de minimis exemption, SingPost’s Australian and Canadian counterparts partnered with Zonos, a third-party provider authorised by the US to help its corporate customers comply with the new duty payment requirements.

Australia Post added that items missing additional information required under new regulations would be rejected and returned to senders.

PostEurop, the association of European public postal operators, said on Aug 19 that critical issues and processes were not yet clearly defined and compliant solutions could not be found before the regulations take effect.

US President Donald Trump’s use of tariffs in this manner will likely see a reduction in the number of packages delivered to the US under the de minimis exemption, which were at 1.36 billion in 2024. They were valued at US$64.6 billion, according to US customs data.

The number of US-based users of Chinese e-commerce platform Temu was nearly halved after the de minimis exemption was eliminated for China in May, reported Reuters.

In a July statement, the White House had claimed that the exemption had been abused to export fentanyl and opioids to the US and was an “extraordinary threat to the safety and security of Americans”.