Key Facts at a Glance

• Australia Post has temporarily suspended commercial parcel services to the United States and Puerto Rico from 26 August 2025.
• Letters and documents of no commercial value are not affected.
• New US tariff rules remove the USD$800 low-value exemption (de minimis threshold) for imports.
• All parcels must include:
  • Country of origin (COO)
  • Declared value of goods
  • Harmonised System (HS) tariff code for each item
• Duties and taxes must be paid in advance via Zonos®, an authorised CBP partner.
• Parcels missing accurate declarations will be rejected and returned.
• Businesses must update their online shipping calculators, checkout processes and customer communication immediately.

What Has Happened

On 26 August 2025, Australia Post announced a temporary partial suspension of parcel services to the United States, citing newly imposed import tariff rules under US Executive Order 14324.

This decision impacts all commercial parcel shipments from Australia to both the US mainland and Puerto Rico. The suspension does not apply to letters or documents of no commercial value.

The disruption comes ahead of 29 August, when the new tariff framework officially takes effect. The rules mark the most significant change in decades to how Australian goods are processed by US Customs and Border Protection (CBP).

The Key Changes Explained

1. Removal of the De Minimis Threshold

Previously, shipments valued under USD$800 entered the US tariff-free. This exemption has been abolished. Every item, regardless of value, will now attract duties and require full customs processing.

2. Mandatory Customs Data

From 29 August, every parcel must include:

• The country of origin of each item (where it was manufactured, not purchased).
• The declared value of each item.
• The HS tariff code for each product.

Parcels without this data will be automatically rejected by Australia Post and returned to sender.

3. Pre-Paid Duties and Taxes

CBP has confirmed that duties must be paid before goods enter the US. Australia Post has partnered with Zonos®, a third-party provider authorised by CBP, to facilitate payments and compliance.

4. Country-of-Origin Example

• An Australian-made dress worth AUD$159 is now subject to a 10% tariff.
• Total before shipping: AUD$174.90 (plus Zonos® handling fee).
• Goods manufactured elsewhere may face higher tariffs — for example, New Zealand origin currently attracts 15%.

Australia Post’s Position

Australia Post has stated it is working with USPS, CBP, DFAT, and the Universal Postal Union to minimise disruption. However, it has warned customers that services will remain suspended until systems are in place to handle the new compliance requirements.

A verified Zonos® account will be mandatory for businesses once services resume, ensuring duties can be collected and transmitted efficiently to US authorities.

What This Means for Australian Businesses

For many exporters, the US is one of the largest overseas markets. The immediate suspension and new tariff regime mean:

• Unexpected shipping delays and cancellations.
• Increased costs for customers due to mandatory tariffs.
• New administrative responsibilities for businesses at checkout.
• Risk of reputational damage if customers are not updated quickly.

As Mel Frank, Director at Frankly Organised, explains, “This is not just a logistics problem, it is a customer experience problem. Businesses that fail to update their websites, online stores, and communication channels risk confusing customers, losing sales, and damaging trust. You cannot afford to leave outdated shipping options on your website.”

The Marketing Perspective

From a marketing and brand trust perspective, proactive communication is essential.

“Customers expect transparency,” says Mel Frank. “If a parcel cannot be shipped or if duties will increase the final cost, that information must be visible upfront. Otherwise, you risk abandoned carts, chargebacks, or negative reviews. This is the time for businesses to over-communicate, not under-communicate.”

Frankly Organised recommends that all businesses update their website shipping calculators, automated emails, and FAQs to reflect the suspension and upcoming tariff obligations.

Practical Steps Businesses Must Take Immediately

1. Pause US Orders if Necessary
   • If your e-commerce platform still allows US customers to place orders, disable shipping to the United States until Australia Post confirms services have resumed.
2. Update Your Website and Checkout
   • Revise shipping calculators to reflect the suspension.
   • Add notices at checkout warning customers about potential delays or suspensions.
3. Communicate with Customers
   • Email all US customers about the changes.
   • Post updates on your social channels.
   • Provide estimated timelines for resumption if available.
4. Prepare for Tariff Compliance
   • Gather country-of-origin data for all your products.
   • Ensure you have accurate HS tariff codes for each item.
   • Register for a Zonos® Verified Account to handle pre-payment of duties.
5. Review Pricing Strategy
   • Tariffs will increase landed costs. Consider whether you absorb part of this or pass it on to customers.
   • Re-run profit margin calculations for your US market.

A Time for Rebuilding Customer Trust

While the suspension is a setback, businesses that handle the communication professionally may strengthen long-term customer loyalty.

“Your customers in the US will understand the situation if you are upfront and clear,” says Mel Frank. “What they will not tolerate is confusion at checkout or surprise charges when their parcel is stopped at the border. Use this as an opportunity to show leadership and transparency.”

Looking Ahead

Australia Post has advised that the suspension is temporary, but there is no guaranteed timeline for when full services will resume. Updates will be provided as systems with Zonos® and CBP are integrated.

Businesses should treat this as a long-term compliance shift rather than a short-term inconvenience. The abolition of the de minimis threshold and mandatory duties collection are structural changes unlikely to be reversed.

Final Summary of Key Actions

• Australia Post suspended parcel services to the US from 26 August 2025.
• All US-bound parcels will soon require country-of-origin, declared value, and HS tariff codes.
• The USD$800 exemption has been removed.
• Duties must be paid upfront through Zonos®.
• Businesses must update shipping calculators, websites, and customer communications immediately.
• Failure to comply will result in rejected and returned parcels.

Frankly Organised remains ready to assist businesses with urgent updates to websites, online stores, and communication strategies. Contact us for more information.