An Post to continue package service amid US import tax confusion

The UK’s Royal Mail and DHL are pausing some deliveries

29/04/2013 News / Archive Post Office Ballsbridge Dublin
Details from Post Office Ballsbridge Dublin 4 showing An Post signage .Photograph: Bryan O'Brien / THE IRISH TIMES 

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Letters and documents are exempted from the new US tax as well as parcels containing personal gifts valued at less than $100. Photograph: Bryan O'Brien

There will be no changes to An Post’s package service to the United States, despite the imposition of a new tax on US-bound parcels containing goods valued above $100 (€85).

Postal services including the UK’s Royal Mail and DHL are pausing some deliveries amid the changes to US import rules from August 29th.

“Following a directive from the US government, all parcels originating in Europe and containing goods must have taxes paid on those goods before they can enter and be delivered in the US,” An Post said in a statement.

“While everyone is aware of new US tariffs on Irish exports, the US has just recently directed that the long-standing tax-free ‘de minimus’ allowance for parcel contents of less than $800 in value being posted from Europe to the US will cease from 29th August.”

Letters and documents are exempted from the tax as well as parcels containing personal gifts valued at less than $100.

“Rather than simply suspend all parcel services to the US, as some other European postal carriers are planning,” An Post said it was seeking a solution for Irish companies selling into the US, in which customers will have to pay the tax before delivery.

An Post said it wished to assure Irish customers that it is “working on their behalf” and that it will keep customers updated with new arrangements as well as contacting directly its business customers that use the service to sell into the US.

The operators of the German postal service, DHL, has announced its plans to enact “temporary restrictions” on postal goods shipping to the US for private and business customers in Germany.

“After August 22nd, Deutsche Post and DHL Parcel Germany will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US,” the company said.

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While DHL noted packages and parcels up to $100 were exempt, it warned that “these shipments will be subject to even stricter controls than before to prevent the misuse of private gift shipments to send commercial goods”.

DHL said the Association of European Postal Services, PostEurop – of which An Post is a member – had “communicated that its member companies will need to temporarily restrict or suspend” the shipping of goods to the US.

PostEurop has been contacted for comment.

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