USMCA Starts July 1, 2020

July 1st, 2020 Comments off

Starting on July 1, 2020, the U.S., Canada and Mexico will start a new trade agreement called the United States-Mexico-Canada Agreement (USMCA) which will be replacing what was formerly known as North American Free Trade Agreement (NAFTA).  The purpose of the agreement is to encourage trade between the three countries, ensure fair labor practices are followed and provide incentives for manufacturing in North America.

For online retailers, one of the key changes within this new agreement is the de minimis threshold values for express shipments (and via customs brokers) into Canada and Mexico from the U.S.

De minimis is a price threshold which countries use to determine if duties and taxes will be applied on shipments.  The de minimis threshold is different for each country, and is determined by the total value of your shipped goods, including shipping fees.  Online retailers like high de minimis thresholds for each country, since a higher threshold keeps duties and taxes from being added to the product cost for a buyer.  As an example, if the de minimis for Australia is $1000 USD, then we can ship items up to $1000 (including shipping cost) without incurring additional duties and taxes.  If the product cost plus shipping is over $1000 USD, then the buyer is going to have to pay additional costs (duties and taxes) to receive the product.

IMPORTANT!  Changes for de minimis starting on July 1, 2020 only applies to express shippers and custom brokers.  Shipments handled by the Postal Service are not changing!

Shipments Entering Canada

Postal Shipments de minimis (USPS delivery to Canada Post)

•  Goods valued over $20 CAD will have tax applicable (Unchanged)

Express Shipments/Custom Brokers de minimis

•   Goods valued over $40 CAD will have tax applicable (New with USMCA)

•   Goods valued over $150 CAD will have both duty and tax applicable (New with USMCA)

Shipments Entering Mexico

Postal Shipments de minimis (USPS delivery to Correos de México)

•   Goods valued over $300 USD will have tax applicable (Unchanged)

Express Shipments/Custom Brokers de minimis

• Goods valued over $50 USD will have tax applicable (Unchanged)

•  Goods valued over $117 USD will have both duty and tax applicable (New with USMCA)

Interested in lowering your international parcel shipments?  Contact GlobalPost and take advantage of free coverage, an easy claims process, no hassle of printing customs forms and more.

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July 1, 2020 Rate Increase: Important News for International Shippers Using Consolidators

June 19th, 2020 Comments off

For large international shippers getting discounted USPS shipping through a consolidator, you may see a significant rate increase starting July 1, 2020 due to the USPS International price change.  (Customers who use for single package international shipping labels will not see a rate increase on July 1 – most customers fall into this category.)

The rate increase is due to the U.S. agreement with the Universal Postal Union (UPU) that was signed in September 2019. The United States had threatened to leave the UPU if they could not self-declare terminal dues (i.e. shipping rates) for countries that had inbound letter and small parcel volumes in excess of 75,000 metric tons.  The Universal Postal Union (UPU) is the governing body that helps postal services around the globe facilitate the delivery of mail and packages amongst each other.

Terminal dues are the fees that a national postal service is charged to have packages delivered in another country. Under the new UPU agreement, the USPS has increased its terminal dues to about 70% of the U.S. domestic rate, which experts believe will result in significantly increased postage rates from other countries, especially China where manufacturers were able to deliver a package from China to the U.S. cheaper than a domestic U.S. delivery.

According to Supply Chain Dive magazine, 31 countries will be reciprocating the U.S.’s self-declared rates for outbound shipments on parcels weighing 4.4 lbs. or less. The U.S. is negotiating new agreements with many additional countries, so other country shipping rates may change soon after July 1, 2020. customers who are using international delivery through a consolidator will be contacted by a GlobalPost sales rep to discuss additional shipping options, including GlobalPost Economy (country to country tracking) and GlobalPost Standard (door-to-door tracking) where we offer the same shipping experience at rates that are protected from the USPS international rate increase starting on July 1, 2020.

About GlobalPost

The GlobalPost delivery network leverages partnerships with international postal operators as well as commercial carriers to offer worldwide delivery. GlobalPost services reach over 200 countries and territories and includes features not found in traditional international postal services, including:

Global Address Verification: Improve deliverability with real-time address verification
No Customs Forms: Send Customs electronically – no forms to print
Ship Merchandise in Flats: Save money with international flats/large envelopes
Instant Refunds: No more tracking refund requests that can take up to 2 weeks
Free Pick-Up Service: Schedule pick-ups when it’s convenient for you (select markets only)
Parcel Coverage: $100 Included

Call 888-899-1255 to contact GlobalPost today

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USPS Restores International Service to Four Destinations

June 15th, 2020 Comments off

The USPS has resumed service to four international destinations: Colombia, Ivory Coast, Kosovo, and Myanmar. Service to these destinations was initially suspended on April 24, 2020 due to lack of transportation as a result of coronavirus.

With these updates, the list of USPS suspended international destinations now stands at 106:

AzerbaijanLebanonSolomon Islands
BoliviaLiberiaSouth Sudan
EcuadorMyanmarTurks & Caicos
JordanPapua New GuineaVenezuela
KiribatiRepublic of CongoYemen
LaosSierra Leone

USPS Restores Military Mail to 40 ZIPs in the Past Three Weeks

June 3rd, 2020 Comments off

Effective today, June 4, 2020, the USPS will restore mail service to 17 Military Mail ZIPs. This announcement comes after the USPS restored service to 15 Military Mail destinations just last week. All 22 ZIPs were previously suspended on April 9 due to a lack of transportation as a result of the coronavirus pandemic. Including the suspensions lifted tomorrow, the USPS has now restored service to a total of 40 Military Mail ZIPs in the past two weeks. For a full list of USPS service alterations due to coronavirus visit the Cornavirus Updates Page.

Mail Service to the following ZIPs is being restored:

AE DPO 09283-9997
AE DPO 09488-9997
AE DPO 09489-9997
AE DPO 09734-9997
AE DPO 09813-9997
AE DPO 09817-9997
AE DPO 09820-9997
AE DPO 09828-9997
AE DPO 09831-9997
AE DPO 09846-9997
AE DPO 09854-9997
AE DPO 09857-9997
AE DPO 09860-9997
AE DPO 09864-9997
AE DPO 09867-9997
AE DPO 09869-9997
AP DPO 96532-9997

International Mail Announcements — May 27th

May 27th, 2020 Comments off

The USPS has received communications from four international postal services regarding new service interruptions. For more information about service alterations due to coronavirus visit the Cornavirus Updates Page.

Empresa de Correos de Honduras (Honducor) has extended the suspension of all postal services until May 31, 2020—this date may be subject to change.

Servicios Postales del Perú has announced that the suspension of all postal services has been extended until further notice.

Slovenia, Pošta Slovenije, has announced that postal services are now gradually returning to normal. Outbound mail service will resume based on the availability of flights and transport capacity.

Correos y Telégrafos has advised that the Spanish Government has extended the state of alert until at least June 7, 2020. As a result, the alterations to postal services will remain in effect.

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