THIS hidden rule change stopped our parcels to the USA—and how it’s been fixed

Good news rarely travels this quickly, but for thousands of Australians it has arrived right on time.

After weeks of frustration, parcels are finally moving again across the Pacific.

Families and businesses can once more send gifts, goods, and personal treasures to the United States without the uncertainty that clouded the past month.

The sudden suspension of services had left many households stranded, unable to post birthday presents, business orders, or care packages.

The disruption began on 26 August, not because of strikes or weather, but due to a sweeping policy shift in Washington.

A change to America’s trade rules abruptly shut down the very system that had made small-scale international shipping simple for decades.

The trade rule behind the shutdown

The rule in question was the ‘de minimis exemption,’ which had allowed packages under US$800 to enter America duty-free.

For years, this threshold enabled the free flow of millions of small parcels, with more than 1.36 billion shipped annually.

Critics, however, argued the policy had grown into a loophole too large to ignore.

According to the Trump administration, the exemption accounted for 90 per cent of all cargo seizures in 2024.

They reported that 98 per cent of narcotics seized from cargo and 97 per cent of counterfeit items came through this channel.

Faced with mounting security concerns and pressure from domestic businesses, the US moved decisively to close the door.

A global ripple effect

Australia was far from the only country affected.

Postal services worldwide scrambled to adapt, leaving global trade channels snarled as governments figured out how to collect and remit tariffs.

What had seemed like a uniquely Australian problem was, in fact, a worldwide shipping standstill.

The origins of the exemption stretched back to 2016, when President Obama raised the threshold from US$200 to US$800 under the Trade Facilitation and Trade Enforcement Act.

The policy had been especially useful to Chinese e-commerce giants such as Temu and Shein, which relied on duty-free shipping for low-value goods.

By 2024, nearly 40 per cent of Chinese imports to the US travelled under the de minimis umbrella.

How Australia Post found a solution

For Australia Post, the challenge was not only political but also technical.

To comply with the new requirements, it partnered with Zonos, a Utah-based company authorised by US Customs to collect tariffs on Washington’s behalf.

The arrangement provided a lifeline for restoring services before the crucial Christmas season.

Gary Starr, Australia Post’s executive general manager, expressed relief when announcing the resumption.

‘We know our customers have felt the impact and disruption from changes the US government made to customs and import tariff rules, and we have been working around the clock to restart sending as soon as possible.’

The cost of connection

For Australian families and businesses, the good news came with caveats.

Parcels would be on the move again, but the costs and complexity of sending them would be higher.

Additional fees, stricter customs categories, and longer wait times were now part of the process.

Online shoppers faced mixed outcomes depending on where retailers stored their stock.

Goods shipped from US warehouses would avoid the new hurdles, while direct imports would carry the extra costs.

The distinction between commercial shipments and personal gifts was also expected to receive tougher scrutiny.

Looking to the future, trade experts warned this was only the beginning.

The European Union had already begun reviewing its own rules, citing concerns similar to those in the US.

The age of cheap, duty-free small parcels appeared to be drawing to a close.

The new normal

Australia Post’s return to service marked both an end and a beginning—the end of a month-long disruption, and the start of a new era where international postage once again demands patience, paperwork, and a little extra in the wallet.

While the resumption of overseas postage offers some relief, challenges with local postal services remain closer to home.

Many communities are facing the loss of post offices that provide essential day-to-day services beyond just mail delivery.

It’s a reminder that postal changes aren’t only about international rules, but also about how local closures affect daily life.

Read more: Australia Post closures deepen crisis as communities lose vital local services

Would you be willing to pay more and wait longer just to keep sending parcels across the Pacific?