Integrated logistics company DHL on Monday will temporarily suspend e-commerce shipments to individuals in the United States when the declared customs value exceeds $800 because import specialists are overwhelmed filing extra documentation after U.S. customs authorities lowered the threshold for filing an informal entry.
U.S. Customs and Border Protection on April 5, in response to President Donald Trump’s order for reciprocal tariffs under emergency authority, began requiring a formal entry process for all shipments with a value above $800. Previously shipments between $800 and $2,500 could be cleared using a simplified and expedited entry process. The reciprocal tariffs on trading partners have been paused, but the change to informal entry rules remains.
In a notice to customers, DHL said it is experiencing multiday shipping delays for U.S. imports above $800 because the sudden change has significantly increased the workload for filing formal customs entries. The company will stop accepting business-to-consumer shipments in that range on Monday until it can expand customs brokerage operations to manage the surge in volume.
“The changes outlined above have caused a significant increase in formal entry clearances, which we are handling around the clock,” the parcel carrier said in a message to customers.
B2B shipments above $800 and both B2C and B2B shipments below $800 in value are not affected by the suspension, DHL said.
“DHL Express is working diligently to scale up clearance capacity” and is instituting the shipment pause so it can “maintain the high-quality service commitment” to customers, the business unit said in a statement provided to FreightWaves.
An informal entry is a streamlined customs clearance process for shipments under $2,500 in value. Informal entries require fewer documents – often just a commercial invoice and airway bill – and no customs bond compared to formal entries, making them a preferred method for many e-commerce retailers, according to trade compliance experts.
Shipments previously eligible for informal entry are now subject to customs duties based on the United States’ Harmonized Tariff Schedule, which could include payment of baseline duties, duties for tariffs against countries for unfair trade practices and new emergency tariffs. Supporting documentation that may now be required includes proof of the goods’ country of origin, as well as the recipient’s tax identification number (Social Security number or employer ID number).
E-commerce businesses and logistics providers are likely to be squeezed even further beginning on May 2, when the U.S. is set to cancel the duty-free exemption for low-value shipments (under $800) from China and Hong Kong. Retailers can send one de minimis shipment per day, per individual with limited document requirements under U.S. law. The majority of de minimis shipments come from China.
Trump is ending that benefit on the grounds that the entry method enables the smuggling of fentanyl from China to the U.S. and that the duty exemption creates an unfair advantage for Chinese sellers over American ones. Individual shipments will now require a formal customs entry or get bundled in bulk shipments.
The amount of duties collected for small-dollar shipments could be limited since the average shipment value is $54, according to CBP.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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