DHL Express withdrew its suspension on deliveries valued above $800 to private individuals in the United States after negotiating changes to new customs rules that had created a significant administrative burden, the company said in a customer notice Monday.
The express carrier, part of the Deutsche Post Group, one week ago stopped accepting business-to-consumer shipments with a value above $800. The suspension was implemented to ensure service levels after U.S. Customs and Border Protection, at the White House’s direction, on April 5 lowered the $2,500 threshold for filing an informal entry, resulting in large shipment backlogs. DHL said import processing specialists were unable to quickly respond to the sudden increase in formal entries, which require much more documentation. The embargo was to continue until DHL could put the processes and personnel in place to handle the extra documentation without impacting service.
The original suspension did not apply to B2B shipments, presumably because companies are more familiar with import rules than are online shoppers, nor to de minimis shipments below $800.
“This decision follows constructive dialogue between DHL and the U.S. government, who demonstrated a strong willingness to understand our operational and technical challenges, and who agreed that it was imperative to act quickly in the interest of U.S. consumers,” DHL said in the bulletin.
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DHL said CBP canceled the tighter regulatory requirements for medium-value goods, meaning shipments valued between $800 and $2,500 can once again be cleared using the expedited informal entry process. “This positive development will enable us to resume normal operations,” the company said.
Customers may still experience delivery delays as DHL reinstates informal entry service and works to clear the shipment backlog, according to the notice.
An informal entry is a streamlined customs clearance process for shipments under $2,500 in value. Informal entries require fewer documents – often just a commercial invoice and airway bill – and no customs bond compared to formal entries, making them a preferred method for many e-commerce retailers, according to trade compliance experts.
E-commerce businesses and logistics providers are likely to be squeezed even further beginning on May 2, when the U.S. is set to cancel the duty-free exemption for low-value shipments (under $800) from China and Hong Kong. Retailers can send one de minimis shipment per day, per individual with limited document requirements under U.S. law. The majority of de minimis shipments come from China.
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Trump is ending that benefit on the grounds that the entry method enables the smuggling of fentanyl from China to the U.S. and that the duty exemption creates an unfair advantage for Chinese sellers over American ones.
“We recognize the importance of collaboration between the private and public sectors in addressing both security and economic considerations for the U.S. and other countries. We will continue to support such processes with our global expertise to find solutions, which fulfill government requirements and meet the needs of our customers,” the DHL announcement said.
DHL’s resumption of medium-value B2C shipments appears related to a Customs message to entry filers. The agency said it is suspending a regulatory provision that typically requires formal entry for goods subject to duties that are valued in excess of $250 because it would impede the ability to implement the rules for de minimis shipments from China and Hong Kong.
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“CBP plans to update its systems to reflect this change on April 30, which will allow the filing of a Type 11 informal entry for articles valued at up to $2,500,” the message said. The suspension applies to all modes and shipments from all countries.
CBP also said it is suspending informal mail entries from China or Hong Kong, regardless of value. During the temporary suspension, formal entry will be required for mail shipments from China or Hong Kong valued at over $800.
The U.S. U-turn on treatment of medium-value goods seems a function of the hasty way the Trump administration has rolled out a series of tariff actions in the first 100 days and the need to make corrections to minimize harm to businesses.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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