SingPost Introduces New Parcel Service to US Amid Tariff Changes

Singapore Post (SingPost) has launched a new parcel service for retail customers sending packages to the United States, effective from September 15, 2023. This service, named Speedpost Direct International (Retail), is designed to ensure compliance with recent US regulations that eliminate tariff exemptions for low-value parcels.

The new service offers flat shipping rates for two standard packaging options, which are intended to simplify the shipping process. For items weighing up to 0.5 kg that fit within a standard envelope measuring 16.2 x 22.9 cm, the shipping cost is set at S$29 (approximately US$23). For items weighing up to 2 kg that fit into a standard carton measuring 31 x 23 x 9 cm, the cost is S$69. Each shipment must also not exceed a value of US$100.

Changes in US Import Regulations

These adjustments come after the US government abolished a tax exemption on small packages valued at US$800 or below, a change that took effect on August 29, 2023. According to the administration, this new regulation is permanent. SingPost has indicated that the two standard packaging options will cover over 80 percent of typical shipments to the US.

“Customers with existing packaging will still have their items repacked into the standard envelope or box to ensure compliance and facilitate efficient handling,” the company stated. Neo Su Yin, SingPost’s group chief operating officer, emphasized the core benefit of the service: “Our post office staff will assist customers in calculating and collecting all necessary duties and taxes upfront, eliminating the surprise of unexpected fees for the recipient.”

Additional Requirements for Customers

To utilize this new service, customers must be aware of the manufacturing country of the items, as this is now a mandatory requirement for US customs. Additionally, they should have the harmonised system code ready, which is essential for customs clearance.

For those with more frequent or varied shipping needs, SingPost recommends setting up a corporate account. This option will provide customers with dedicated account managers who can assist with shipments of different sizes using the Speedpost Direct International service.

Packages exceeding 2 kg or valued over US$100 still have alternatives. Customers can opt for the premium Speedpost Express International service, which remains available for larger shipments.

This launch follows SingPost’s announcement in August that it would suspend the acceptance of items with commercial value via its standard services to the US, except for letter mail with no declared value.

The changes in US import regulations have had a ripple effect globally. According to the Universal Postal Union (UPU), at least 88 postal operators worldwide have fully or partially suspended their services in response to the new tariffs imposed by Washington. The UPU serves as the United Nations’ postal cooperation agency, highlighting the far-reaching impact of these regulatory shifts.