@38e_avenue wrote:Several of my packages are now late and in transit since almost 4 weeks - all with open USPS search request. If they remove the de minimis, the average transit time from Canada to the US will be 8 to 14 months 😀
I think your late packages are in this pile...somewhere!!!
Eliminating de minimis would also pose significant challenges for delivery giants such as FedEx, UPS, and the USPS. Currently, Klage explains, these services act as the importer of record for de minimis shipments, simply checking a box with customs before delivering the package — no duties owed, no extra costs, and no delays for customers. Without duty-free entry, they would either be responsible for paying the duties themselves, or be forced into a complicated customs process to transfer power of attorney to the end customer, who would then be required to cover the charges instead.
"And that seems like a complete impossibility," he says. "Just start to picture what that looks like from a manpower perspective, and think about all of the angry phone calls FedEx is now going to be getting from individuals all over the country. Then you get shipments that are stuck and can't deliver because there's no power of attorney to make the clearance."
But, that doesn't mean changing de minimis for the better in some way is impossible, says Ben Tzion. He believes that, once the dust settles, a more likely scenario is one where the exemption threshold is reduced from $800 to somewhere around $250, and predicts that, eventually, businesses will adapt as CBP irons out the kinks. Klage adds that any new system would need to "completely rethink the tariff system," while simplifying the process for collecting the duties themselves, removing bureaucratic barriers for delivery services, and taking the necessary time to build out the infrastructure needed to support these systems.
"I think that's the only way to actually have it generate positive revenue for the government, and to not have commerce grind to a halt," Klage says.
