DHL is temporarily suspending business-to-consumer shipments over $800 destined for the U.S. starting Monday, the logistics giant told customers in an email.
The suspension will apply until further notice, according to the email. Business-to-business shipments going to U.S. companies and shipments with a declarable value below $800 are not impacted.
DHL said on its website that the halt is due to delays stemming from changes in U.S. trade regulations that went into effect April 5. Shipments over $800 now require formal customs processing to enter the country, down from the previous threshold of $2,500, according to the company.
"The changes outlined above have caused a significant increase in formal customs clearances, which we are handling around the clock," DHL said in the email to customers. "While we are working diligently to scale up and manage this increase, we are experiencing multi-day transit delays to the U.S from any origin for shipments with a declared customs value exceeding USD 800."
U.S. Customs and Border Protection did not respond to a request for comment seeking more information on the threshold reduction reported by DHL.
Importers have historically used Type 11 informal entry to clear sub-$2,500 goods through customs in a streamlined fashion, rather than through formal entry procedures requiring more information and documentation.
Shipments below $800 have leaned on the duty free de minimis exemption instead, but that is set to end for China-based products next month, with other countries expected to follow. Experts have said informal entry could be a palatable option for shippers adjusting to the upcoming restrictions.
DHL is one of several companies making changes to its shipping services amid ongoing trade turmoil, particularly between the U.S. and China. FedEx and UPS have both instituted China-to-U.S. fees, while Hong Kong's postal service will suspend all shipments of U.S.-bound items by April 27.
