ParcelHero expects revised customs threshold to boost export sales

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International shipping facilitator ParcelHero expects UK exporters to benefit from extra orders generated by the newly revised customs threshold in the USA.

The change in law which came into effect today (March 10) simplifies shipping to the USA by raising the import minimum value limit from US$200 to US$800 before duties and taxes are imposed. It also means goods below US$800 won’t need to go through formal customs procedures, speeding up deliveries into the country.

David Jinks, head of consumer research, ParcelHero, said, “Many British products previously fell foul of the USA’s US$200 limit 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 USA, as most items valued over US$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, simplifying the shipping of goods to the USA.

“The USA is the top non-EU destination for exports for the UK’s SMEs; 35% of SME exporters ship regularly to the USA,” added Jinks. “The new threshold on items before they must have duties and taxes imposed covers the majority of items for our online retailers and smaller manufacturers.

“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. Senders should also ensure that the item does not fall above the US$800 threshold or the receiver will have to pay duties – not great if it’s a present. 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.”

March 10, 2016

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, editor-in-chief

Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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