Changes are coming for anyone shipping goods into the United States. From 29 August 2025, the long-standing exemption on low-value imports (under US$800) will be removed, and duty and tax fees will be collected along with freight fees upfront. That means every parcel, no matter the value, will be subject to duties and taxes when shipped to the US by any means.
What’s Changing?
Until now, goods valued under US$800 could enter the US duty-free. That exemption is ending. From 29 August 2025, all shipments will be assessed for duties and taxes under US trade rules.
- Duties will vary depending on the country where your goods were manufactured.
- Every shipment, regardless of value, will now attract customs charges.
- Duties and Taxes will be collected by the shipping company rather than managed by US customs on arrival.
- The rules fall under the International Emergency Economic Powers Act (IEEPA), which sets tariffs based on product type and country of origin.
- Click here to read the excutive order
What Data You’ll Need
To avoid delays and penalties, US Customs will require much more detailed data on every shipment. This includes:
- Country of origin
Where the goods were manufactured (not necessarily the country you’re shipping from). - HS Tariff code
The full 10-digit harmonised tariff code for every item. - Detailed, accurate, generic product descriptions
Branded product names no longer will suffice.
Contact us if you are unsure how to describe your goods.
Differences between Courier & Postal Services Regarding When Duties Are Paid
One common client question is: “Who will now manage duties and taxes, the sender or the receiver?”
- For courier services like FedEx, DHL, air or sea freight, this is determined by the shipper prior to shipment with the shipper sorting the totals for express courier services like FedEx and DHL, and the receiver sorting the totals for sea freight.
- For mail/postal services, typically, the receiver pays to their country's customs collectors on arrival to release the shipment.
This makes courier solutions simpler for many businesses as packages are less likely to be stopped by customs enroute. Method Global is primarily focused on these pathways during this period of transition for smaller shipments.
NZ Post during this transition
Our conversations with NZ Post confirm there’s still some uncertainty around how they’ll handle these rapid, yet major, changes:
- They have been provided limited information from US authorities, and the situation is rapidly evolving.
- They’re working on a new service where duties and taxes could be paid upfront in New Zealand and passed on to the US. This would make the new process smoother, but it’s not yet available as this order was made by the US without providing notice to create such systems.
- When it does launch, businesses will need to be meticulous with their HS codes and product declarations. Any mistakes could cause delays at the border.
NZ Post is working on it despite the short notice from the US, but a new system isn’t ready yet.
What This Means for You
These changes will take some adjustment. But the good news is that you don’t have to figure it out alone.
- If you’re sending freight to the US, check your invoicing systems, HS codes, and item descriptions.
- Think carefully about whether postal or express solutions are right for you at this time.
- Talk to us so we can get you on the right pathway, and avoid costly surprises.
Contact Us
Change is the only constant in global freight, and this is just the latest example. At Method Global, we have solutions in place to keep your business moving.
Contact Method Global today to get your freight and 3PL needs sorted, and ship with confidence.