SingPost starts corporate service for US parcels after de minimis tariff exemption ends

[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 from Monday (Aug 25), ahead of the end to the so-called de minimis exemption this Friday.

In its place, SingPost introduced a new service called Speedpost Direct International, tailored for corporate customers, in response to the new US regulations.

Its introduction follows temporary postal suspensions across the world, from Japan and Australia in the Asia-Pacific, to European countries such as the United Kingdom, France and Germany.

US consumers had been able to import cheap goods from overseas under the de minimis exemption, which avoided duties for packages valued under US$100. The exemption was suspended for the entire world last month, following an earlier suspension targeted at China.

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

SingPost said that retail customers may continue to use Speedpost Express, with shipments of letter mail unaffected. Speedpost Express aims for delivery within three to six days.

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