SingPost Launches New Parcel Service to US Amid Tariff Changes

Singapore Post (SingPost) has introduced a new parcel service aimed at retail customers sending packages to the United States, effective from September 15, 2023. This initiative comes in response to recent changes in U.S. import regulations that eliminate tariff exemptions for low-value packages, a shift that could significantly impact many senders.

The service, named Speedpost Direct International (Retail), offers flat shipping rates for two standard packaging options. Customers can send items weighing up to 0.5 kg in a standard envelope measuring 16.2 x 22.9 cm for a fee of S$29 (US$23). For larger items, up to 2 kg that fit into a standard carton of 31 x 23 x 9 cm, the cost rises to S$69. Each shipment must not exceed a value of US$100, aligning with the new U.S. customs regulations.

The changes are the result of the U.S. government’s decision to abolish a tax exemption on small packages valued at US$800 or below, effective August 29, 2023. This measure, introduced by the Trump administration, is now permanent and affects all international shipments. SingPost noted that the two standard packaging options cover over 80 percent of typical shipment sizes to the U.S., facilitating a smoother transition for its customers.

To ensure compliance and efficiency, SingPost will repackage items that do not fit the new standards into the specified envelope or box. Neo Su Yin, SingPost’s group chief operating officer, highlighted the importance of transparency, 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.”

As part of the new service, customers must provide details about the country where the items were manufactured, which is now a mandatory requirement for U.S. customs clearance. Additionally, they are required to have the harmonised system code, a universal classification for traded products, to ensure smooth processing.

For those with more complex shipping needs, SingPost recommends setting up a corporate account. This option allows for dedicated account management, catering to shipments of various sizes using the Speedpost Direct International service. Furthermore, customers with parcels over 2 kg or valued above US$100 can opt for SingPost’s premium Speedpost Express International service.

In light of the recent regulatory changes, SingPost announced last month that it would suspend the acceptance of items with commercial value through its standard services to the U.S., apart from letter mail with no declared value. This decision reflects a broader trend, as the Universal Postal Union (UPU) reported that at least 88 postal operators worldwide have fully or partially suspended services due to the new tariffs imposed by the U.S.

The introduction of the Speedpost Direct International service aims to streamline the shipping process for customers while adapting to the evolving landscape of international trade regulations.