Australia Post halts parcels amid levies

Postal services provider Australia Post said on Tuesday it was partially suspending international parcel deliveries to the United States, following similar moves by other carriers worldwide facing US tariffs.

The government-owned corporation said in a statement it was "temporarily partially suspending international parcel services to the US" due to Washington's recent announcement of "significant changes to its import tariff rules that will impact customers sending items from Australia to the US and Puerto Rico".

Low-value packages en route to the US had been previously subject to the "de minimis" treatment, which allowed parcels worth less than $800 to enter the country duty-free.

However, an executive order by US President Donald Trump ended the allowance, effective on Friday. Parcels will now be subject to duties under US tariff moves, which impose a baseline 10 percent tariff on Australian goods.

Letters and documents of no commercial value are not impacted by the new tariff rules or temporary suspension, Australia Post said, adding that it has partnered with a third-party provider "to help our business contract customers comply with the new duty payment requirements".

Australia Post's move comes after several European carriers stopped shipments to the US because of the new rules.

Deutsche Post and DHL Parcel Germany are no longer able to accept and transport parcels and postal items containing goods from business customers destined for the US after Aug 22, according to parent company DHL Group.

Similarly, Swiss Post said it would temporarily be unable to accept any postal goods consignments to the US from Tuesday "due to the US government's new customs regulations, which affect all postal companies worldwide".

New Zealand's postal services provider NZ Post confirmed in a statement that, with all items sent from the country subject to a 15 percent tariff, "regardless of value", from Aug 29, its suspension of parcel services into the US and US territories will be temporary, and it is "working on getting solutions in place as fast as we possibly can".

The temporary suspension by Australia Post is expected to impact both business and retail customers sending goods through the postal network to the US, reported the Australian Associated Press.

Disappointment expressed

"We are disappointed we have had to take this action," it quoted Australia Post executive general manager for parcel, post, and e-commerce services, Gary Starr, as saying.

"However, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers," he said.

"Australia Post continues to work with the US and Australian authorities and international postal partners to resume postal service to the US as a priority."

The US decision to remove exemptions from tariffs and duties for low-value imports would only raise costs for US consumers and small businesses, Australia's Seven News TV network reported, citing a spokesperson for the Department of Foreign Affairs and Trade.

The government of Prime Minister Anthony Albanese "will work with Australia Post to limit disruptions for affected customers while they make adjustments to comply with new requirements … We continue to advocate for the removal of all tariffs on Australian exports, in line with our free trade agreement".

Nicola Charwat, senior lecturer at Monash University, said the impact in Australia would be mostly felt by small businesses that sell directly to US consumers.

"This includes businesses specializing in sustainable clothing and gifts, as well as distinctly Australian goods such as cosmetics, food and wine. These parcels will now be subject to a 10 percent baseline tariff," Reuters quoted Charwat as saying.

Agencies contributed to this story.

Contact the writers at xinxin@chinadaily.com.cn.