SingPost launches new parcel service to US to comply with tariff changes

Customers who want to send parcels to the US can now do so with Singapore Post's new shipping service at a flat rate.

They will also have to pay duties and taxes upfront first before shipping.

Starting on Sept 15, the new service comes following changes to US tariffs on Aug 29, which removed the "de minimis" exemption on postal shipments to the US worth less than US$800 (S$1,026).

Previously, the exemption allowed most international shipments valued under US$800 to enter the US without duties or taxes.

SingPost said it suspended standard postal services for commercial items to the US on Aug 25 to protect customers from potential delays or parcel seizure.

It added that the traditional post system is not equipped to handle the changes, which subject all commercial items to duties, taxes and enhanced scrutiny.

But it will now be able to resume postal shipments to the US with its Speedpost Direct International (Retail) service, which it said is a compliant and reliable alternative.

Customers can choose to send their parcels with a honeycomb padded envelope for $29 with a maximum weight of 0.5kg, or a standard carton box measuring 31cm by 23cm by 9cm for $69 and not exceeding 2kg.

Each shipment's value must not exceed US$100, and shipping is expected to take five to eight working days.

The flat rate excludes taxes and customs' duties, which SingPost will calculate for the customer before shipping.

SingPost group chief operating officer Neo Su Yin said the new service offers transparency for customers and avoids any hidden fees.

"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. This provides a hassle-free experience from start to finish."

SingPost said customers with more frequent or varied shipping needs are advised to set up a corporate account, where its dedicated account managers can support customers with shipments of different sizes.

These include small and medium-sized enterprises (SMEs) as well as marketplace sellers.

Packages above 2kg or valued more than US$100 should be sent via the premium Speedpost Express International Service instead, it added, which will complete delivery within three to six working days.

The retail service's launch comes after the postal service introduced the "delivery duty paid" model for its corporate customers on Aug 27, before the expiration of the "de minimis" exemption.

The "de minimis" exemption was previously slated to end in July 2027. But US President Donald Trump accelerated its expiration with an executive order, citing the ease of fentanyl trafficking into the country.

Fentanyl is an opioid drug typically used for pain relief and as an anaesthetic, and is the primary cause of drug overdose deaths according to the US government.

US retailers and industry groups also opposed the exemption in the belief it gave an unfair advantage to foreign e-commerce companies, such as Shein and Temu, as well as some third-party sellers on Amazon.

The change has caused turmoil among postal services around the world. More than 30 countries suspended shipments to the US in August before gradually resuming with a "postal delivery duties paid" service - which postal services have typically not done before.