WASHINGTON: The US tariff exemption for package shipments valued under $800 ended on Friday, raising costs and disrupting supply chain models for e-commerce companies, small businesses using online marketplaces and consumers alike.

The US Customs and Border Protection agency began collecting normal duty rates on all global parcel imports, regardless of value, country of origin, or mode of transportation at 12:01am (0401 GMT) on Friday.

It offered a flat-rate duty option of $80 to $200 per package shipped from foreign postal agencies for six months.

The change broadens the Trump administration’s cancellation of the de minimis exemption for packages from China and Hong Kong in May as part of an effort to halt shipments of fentanyl and its precursor chemicals into the US.

Move disrupts supply chain models for e-commerce companies and small businesses

The de minimis tax exemption is a law that Congress passed on a bipartisan basis that allows shipments bound for American businesses and consumers valued under $800 (per person, per day) to enter the US free of duty and taxes. As it allows goods to be shipped quickly and affordably, it benefitted every American for decades though it gained much appreciation during the pandemic.

White House trade........

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