ParcelHero Says New US $800 Customs Threshold will Give Huge Boost to Export Sales
UK exporters stand to make £1000’s in extra orders and reduced red tape as the US Duty threshold rises from $200 to $800, say international shipping experts ParcelHero.
International delivery experts ParcelHero are predicting a boom for businesses shipping to the US following a major change in US law tomorrow (March 10), which simplifies shipping to the United States by raising the import minimum value limit from $200 (around £140) to $800 (around £560) before duties and taxes are imposed. It also means goods below $800 won’t need to go through formal customs procedures, speeding up deliveries into the US.
The global parcel brokers ParcelHero say British businesses will receive thousands more orders and save £1000's on delays and red tape when selling to the US under the new law. ParcelHero’s Head of Consumer Research, David Jinks MILT says: ‘Many British products previously fell foul of the USA’s $200 limit (just £140) before duties and taxes were applied. These duties usually had to be paid for by the receiver. It made our products less competitive than those purchased within the US, as most items valued over $200 had duties imposed on them, at a rate ranging from 0% to 37.5%, with the average duty rate being 5.63%.’
The new higher limit covers most goods sold by the majority of the UK’s smaller internet retailers such as marketplace traders, and many products sold by SME companies. It also reduces costs and paperwork for businesses, simplify the shipping of goods to the United States.
Says David: ‘The US is the top non-EU destination for exports for the UK’s SMEs, 35% of SME exporters ship regularly to the USA. The new threshold – around £560 at today’s exchange rate - on items before they must have duties and taxes imposed covers the majority of items for our online retailers and smaller manufacturers.’
David has a word of warning for exporters of some products though: ‘Some US Government agencies, such as the Food and Drug Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, may still require formal customs entries on all goods, regardless of value. And do ensure your item does not fall above the $800 threshold or the receiver will have to pay duties – not great if it’s a present, for example! Senders can ask ParcelHero’s customer services team for a reverse charges option, however, which means the sender can pay all the duties and taxes that apply on goods going to the USA.’
For full information and helpful advice about shipping to the USA see: https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery
For more information please contact David Jinks, Head of PR, on david@parcelhero.com or by phone on 0208 7584962 (07772 055748 out of office hours)
Leading international online courier ParcelHero® strategically partners with the world's leading logistics companies, including DHL, UPS and DPD, to provide a flexible, cost-effective range of parcel delivery services to over 220 countries worldwide. Huge bulk purchasing power allows ParcelHero® to offer highly competitive pricing with no compromise in service quality.
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