Navigating Post-De Minimis Customs: How Major Carriers Manage Import Delays and Disposals

Navigating Post-De Minimis Customs: How Major Carriers Manag - Customs Clearance Challenges in the Post-De Minimis Era The el

Customs Clearance Challenges in the Post-De Minimis Era

The elimination of the de minimis exemption has created significant disruptions in cross-border shipping, with U.S. Customs and Border Protection holding packages for extended periods and, in some cases, disposing of them entirely. Major parcel carriers UPS, FedEx, and DHL Express report struggling to adapt to the new regulatory landscape that now subjects previously exempt low-value imports to tariffs and stricter entry requirements.

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Since the August 29 policy change that eliminated the $800 duty-free threshold, carriers have witnessed a sharp increase in customs clearance issues. What was once a streamlined process for low-value shipments has become a complex compliance challenge affecting both businesses and consumers., as our earlier report, according to market trends

Carrier Approaches to Customs Hangups

UPS has implemented a multi-tiered response system when packages encounter customs obstacles. “Our brokerage team clears more than 90% of packages on their first entry day,” the company stated, though they acknowledge some shipments face delays due to missing or incomplete information. When clearance issues arise, UPS makes repeated attempts to contact shippers for necessary documentation. If unresolved, shippers face two options: return the shipment at their expense or risk abandonment and disposal under CBP regulations.

FedEx emphasizes collaboration with shippers to correct paperwork deficiencies identified by CBP officials. The company notes that disposal remains an uncommon last resort, occurring only when clearance cannot be achieved and the shipper specifically requests it. “In those rare cases, recipients are notified at the direction of the shipper,” FedEx clarified, highlighting their preference for resolution over disposal.

DHL Express takes a distinctly different approach, explicitly stating they do not dispose of uncleared packages. Instead, the company operates within a 10-day window to gather missing information before automatically returning shipments to their origin. “This timeframe allows DHL Express to process the shipment for export prior to day 15 to ensure Customs regulations compliance,” the company explained.

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The Consumer Impact: Surprise Fees and Abandoned Packages

The regulatory shift has created unexpected consequences for end consumers, who now frequently find themselves designated as the “importer of record” for cross-border purchases. This designation transfers significant responsibility to buyers, including the obligation to release goods from customs and pay associated fees., according to market developments

According to international trade experts, this new dynamic has led to increased package abandonments as consumers face unexpected charges and complicated clearance procedures. Many choose to forfeit their purchases and seek refunds rather than navigate the unfamiliar customs process.

Thomas Taggart, Vice President of Global Trade at Passport, notes that standard freight shipments typically have 15 days to clear customs before disposal becomes a compliance necessity. This tight timeframe creates pressure for both carriers and consumers to resolve documentation issues quickly., according to related coverage

Strategies for Smoother Cross-Border Shipping

Industry experts recommend several approaches to minimize customs complications:

  • Complete Documentation: Ensure all import paperwork includes essential elements like 10-digit Harmonized System codes and accurate country of origin information
  • Third-Party Brokerage: Foreign merchants should consider working with customs brokers to manage clearance on behalf of customers
  • Foreign Importer of Record Status: Non-U.S. shippers can establish themselves as foreign importers of record to prevent burdening end customers
  • Carrier Communication: Maintain open lines with carriers and ensure they have correct buyer contact information

Nick Baker, co-lead of Kroll’s trade and customs practice, emphasizes the shifted responsibility: “Once the package is in the US and pending customs clearance, it’s really the buyer’s responsibility to work with the carrier to clear the goods and tender any duties owed.”

Looking Ahead: Adaptation in the Peak Season

As the holiday shipping season approaches, these customs challenges threaten to disrupt importers’ customer satisfaction efforts. The complications arrive at a particularly inopportune time for e-commerce businesses relying on predictable delivery timelines.

Rathna Sharad, CEO of FlavorCloud, summarizes the situation: “All of this is an implication of the abrupt changes to de minimis.” The shipping industry continues to adapt to these new realities, developing processes to navigate the more complex regulatory environment while minimizing disruptions for businesses and consumers alike.

For international shippers, the message is clear: proactive compliance and strategic partnerships with carriers and brokers have become essential components of successful cross-border e-commerce in the post-de minimis landscape.

References & Further Reading

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