SingPost Introduces New Parcel Service to US Amid Tariff Changes

Singapore Post has launched a new parcel service to the United States, effective from September 15, 2023. This initiative aims to comply with recent US regulations that revoke tariff exemptions on low-value packages. The new service, named Speedpost Direct International (Retail), offers flat shipping rates for two standard packaging sizes, specifically designed to address the changes in customs policy.

Under the updated guidelines, items weighing up to 0.5 kilograms that fit into a standard envelope measuring 16.2 x 22.9 centimeters will incur a flat shipping fee of S$29 (approximately US$23). For parcels weighing up to 2 kilograms that can be accommodated in a standard carton measuring 31 x 23 x 9 centimeters, the cost will be S$69. Each shipment must also have a maximum value of US$100, aligning with the new import restrictions introduced on August 29.

The changes were implemented following the US government’s decision to eliminate a tax exemption that previously applied to small packages valued at US$800 or less. This new regulation, described as permanent by the Trump administration, has prompted a broad response from postal operators worldwide. According to the Universal Postal Union (UPU), at least 88 postal services globally have either fully or partially suspended their operations due to the new tariffs.

To ensure compliance, SingPost requires customers to use the standard packaging options for their shipments to the US. Items that do not conform to these standards will be repacked by staff at post offices to facilitate efficient handling. Neo Su Yin, the group chief operating officer of SingPost, emphasized that the new service provides transparency for retail customers, stating, “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.”

Customers planning to utilize the new service must be aware of the country of manufacture for the items being sent, as this information is now a mandatory requirement for US customs. Additionally, they will need the harmonised system code, a universal classification for traded products vital for customs clearance.

For those with more frequent or diverse shipping needs, SingPost recommends establishing a corporate account. This option allows for dedicated account management to assist customers with various shipment sizes using Speedpost Direct International. For packages exceeding 2 kilograms or valued over US$100, customers are directed to use the premium Speedpost Express International service, which remains available.

Furthermore, it is noteworthy that, as of August 25, SingPost suspended the acceptance of items with commercial value through its standard services for shipments to the US. This exception does not apply to letter mail with no declared value. The measures reflect the wider impact of US tariff changes on international postal services, underscoring a significant shift in global shipping practices.