SingPost launches new parcel service to US to comply with tariff changes for low-value packages

SINGAPORE: Retail customers sending packages to the United States from Monday (Sep 15) can use a new Singapore Post service that ensures compliance with new US rules that no longer allow tariff exemptions for low-value parcels.

The new service, called Speedpost Direct International (Retail), provides flat shipping rates for two standard packaging options, excluding taxes and duties.

Items up to 0.5kg that fit into the standard envelope size of 16.2 x 22.9cm will have a flat shipping rate of S$29 (US$23), while items up to 2kg that fit into the standard carton measuring 31 x 23 x 9cm will cost S$69. The value of each shipment must also not exceed US$100.

This comes after the US abolished a tax exemption on small packages valued at US$800 or below entering the country under new import regulations effective Aug 29. The Trump administration has said that it is permanent.

SingPost said that the two standard packaging options "covers over 80 per cent" of the typical size of its shipments to the US.

"Customers with existing packaging will still have their items repacked into the standard envelope or box to ensure compliance and facilitate efficient handling," the company added.

"Our post office staff will assist customers in calculating and collecting all necessary duties and taxes upfront, eliminating the surprise of unexpected fees for the recipient," said SingPost group chief operating officer Neo Su Yin.

"The core benefit of this service is its transparency for retail customers." 

To use the new service, customers should know the country where the items were manufactured, which is a new mandatory requirement for US customs, said SingPost.

They should also have at hand the harmonised system code - which is a universal classification for traded products and is also required for customs clearance - for the items.

For customers with more frequent or varied shipping needs, SingPost said it recommended setting up a corporate account where dedicated account managers can support customers with shipments of different sizes using Speedpost Direct International.

SingPost added that customers with packages over 2kg or valued over US$100 can use its premium Speedpost Express International service instead.

It announced last month that, effective Aug 25, it would be "suspending the acceptance of items with commercial value" via its standard services, except for letter mail with no declared value, for shipments to the US.

According to the Universal Postal Union (UPU), at least 88 postal operators worldwide have fully or partially suspended services following Washington's imposition of new tariffs. The UPU is the United Nations' postal cooperation agency.