[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. The UPU is a United Nations body.
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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.
The UPU 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” 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.
The 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.
SingPost said Speedpost Express is “fully equipped” to comply with the latest US customs requirements and aims for delivery within three to six days.
