DHL blamed the halt on new US customs rules which require formal entry processing on all shipments worth over $800. - Reuters

DHL blamed the halt on new US customs rules which require formal entry processing on all shipments worth over $800. - Reuters

DHL Express has temporarily halted business-to-consumer (B2C) shipments worth more than $800 destined for the United States, citing new customs regulations that require formal entry processing for all shipments exceeding this threshold. The suspension, effective Monday, is a response to a recent change in U.S. trade policies that has significantly increased formal customs clearances [1].

The change, implemented by the U.S. Customs and Border Protection (CBP) on April 5, lowered the threshold for formal entry processing from $2,500 to $800. This policy shift, part of broader trade measures under the International Emergency Economic Powers Act (IEEPA), mandates that all shipments over $800 undergo individual formal clearance, including import customs duties based on the Harmonized Tariff Schedule [1].

DHL has stated that the logistics giant is handling these clearances "around the clock" and is working diligently to manage the increase in formal customs clearances. However, the company is experiencing multi-day transit delays for shipments exceeding $800, leading to the suspension of B2C shipments [1].

Business-to-business (B2B) shipments valued at more than $800 are not suspended but may still face delays. Shipments with a declared value below $800, including those that previously benefited from the de minimis exemption, remain unaffected [1].

This suspension follows similar actions taken by other logistics companies and postal services in response to the evolving U.S. trade policies. Hong Kong's postal service, for instance, indefinitely suspended low-value shipments to the U.S. due to the closure of the de minimis provision and the added tax on each delivery [1].

The escalating trade tensions between the U.S. and China, as well as other countries, have led to a series of adjustments in shipping services. FedEx and UPS have implemented their own surcharges and fee structures to manage the increased regulatory burden [1].

The ongoing trade turmoil is expected to continue impacting global logistics and shipping services, with companies adapting their operations to comply with the evolving trade policies. DHL's suspension of B2C shipments is a clear indicator of the challenges faced by the logistics industry in navigating these complex regulatory changes.

References:
[1] https://sourcingjournal.com/topics/logistics/dhl-delays-suspends-shipments-cbp-customs-clearance-formal-entry-processing-hongkong-post-de-minimis-1234744873/