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USPS recently announced a temporary halt on accepting packages from China, only to retract it the next day. This decision specifically affects the International Letter Mail System under the Universal Postal Union (UPU). However, it does not impact direct shipping methods such as Portless or major e-commerce platforms like Shein and Temu.
Clarifying USPS’s Temporary Suspension of Packages from China
The International Letter Mail System is primarily used for traditional country-to-country mail. A comparable example would be sending letter mail from a Canadian post office in Toronto to the U.S., where USPS manages the final mile delivery. In this case, USPS is temporarily ceasing the acceptance of mail packages containing products from China Post and Hong Kong Post due to the system’s lack of necessary data requirements.
To address this issue, an announcement will be made tomorrow stating that CBP will require a formal entry (Entry 01) for products shipped via the letter mail method. This measure is designed to prevent the improper use of letter mail for shipping product parcels, as the system was not intended for such purposes. As a result, USPS will stop accepting these shipments.
This situation differs significantly from the model used by most major direct shipping businesses like Shein and Portless. Direct shipping from China now follows a "direct injection" model, where packages use Entry 11 or Entry 01 for customs clearance—similar to the process used for shipping containers or express deliveries via carriers like DHL and FedEx.
In the direct injection model, packages are not handed over to USPS until they have been fully cleared at local U.S. facilities and are ready for domestic delivery. The international mail system is bypassed entirely, with shipments treated as local USPS drop-offs.
We hope this provides clarity on the situation. We will continue to monitor developments and provide updates as trade regulations evolve.
Cutting Through the Noise: Understanding Customs Import Valuation from China For E-Commerce Businesses
There has been significant speculation regarding the valuation of customs imports from China. While discussions have been widespread, we wanted to ensure accuracy before commenting. To provide clarity, our COO, Jonathan Frankel—who attended Harvard Law School—consulted with our expert cross-border trade counsel to address these concerns.
Given the increasing discussions around tariffs this week, we will be hosting a webinar featuring our cross-border legal experts. This session will offer direct insights and answers from professionals rather than relying on social media speculation. A link to register can be found in the comments.
Please note that this video and all related content are for informational purposes only and do not constitute legal advice. We encourage businesses to consult with their own legal counsel for specific guidance.
Questions about how 2025 tariffs will impact your e-commerce business? Contact us now. We'll be happy to answer any of your questions.
Register for our webinar to gain in-depth insights into tariff laws and learn actionable steps to navigate these changes. Our event will feature expert cross-border tax lawyers as guest speakers. >>
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