The US Postal Service, USPS, has resumed accepting parcels from mainland China and Hong Kong following a temporary suspension after President Donald Trump changed the rules on import taxes.
USPS said it was working with US Customs and Border Protection to ensure “the least disruption” to package deliveries as the US president announced trade measures that include imposing tariffs on Chinese goods.
“The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery,” according to an official statement.
As part of the changes, the US has closed a loophole that allowed small packages worth $800, £641, or less to be sent to America without paying taxes or fees.
This comes as Chinese retailers, such as online giants Shein and Temu, have used the tax exemption to ship low-value packages to the US and have benefitted from similar rules in the UK and the European Union (EU) to reach millions of customers.
The explosion of parcels being shipped under the loophole has prompted increased scrutiny in recent years. While all retailers use the exemption, those who sell fast fashion and cheap goods have seen their sales soar.
It has prompted concerns that domestic retailers are being undercut and governments are missing out on potential tax incomes.
Nick Stowe, chief executive of Monsoon Accessorize, told the BBC’s Today programme he was in support of the changes in the US.
“It has long been a complaint of UK retailers, European retailers, and US retailers that Shein is exploiting this loophole, not paying customs duty, and they have built a business at an industrial scale,” he said.
Recall that President Trump’s imposition of 10 percent on Chinese imports in the US sparked trade.
China, in retaliation, slammed the US with a 15 percent tariff on coal and liquefied natural gas.