How UPS, FedEx and DHL Express handle customs hangups post-de minimis

TITLE: Navigating Post-De Minimis Customs: Carrier Strategies for Avoiding Package Abandonment

The New Customs Landscape for U.S. Imports

The elimination of the de minimis exemption has fundamentally reshaped cross-border shipping to the United States. Since August 29th, when the Trump administration removed this trade provision that previously allowed sub-$800 imports to enter duty-free and tax-free, low-value packages now face tariffs and stricter entry requirements. This regulatory shift has created significant challenges for carriers and shippers alike, with many packages experiencing unexpected customs delays and, in some cases, disposal., according to additional coverage

The New Customs Landscape for U.S. Imports
Carrier Approaches to Customs Challenges
Understanding Customs Disposal Timelines
Expert Strategies for Mitigating Customs Risks
Proactive Solutions for International Shippers

According to parcel carriers, U.S.-bound shipments are being held by Customs and Border Protection for extended periods as shippers struggle to adapt to the new requirements. The situation has led to surprise fees for consumers and potential package abandonment, creating particular concern as the peak holiday shipping season approaches.

Carrier Approaches to Customs Challenges

The three major international carriers—UPS, FedEx, and DHL Express—have implemented distinct strategies to manage the increased customs scrutiny while maintaining regulatory compliance., according to industry news

UPS Customs Resolution Process, according to recent research

UPS acknowledges that the regulatory change has resulted in packages being unable to clear customs due to missing or incomplete information. The carrier reports that its brokerage team successfully clears over 90% of packages on their first entry day. When holdups occur, UPS makes multiple attempts to contact shippers for necessary information. If unresolved, shippers face two options: return the package to the original sender at their expense, or if the customer doesn’t respond, the package is considered abandoned and disposed of in compliance with U.S. customs regulations.

FedEx’s Collaborative Approach, according to recent innovations

FedEx emphasizes working directly with shippers to update customs paperwork when CBP officials identify incomplete or rejected information. When clearance issues persist, shippers can choose to return packages to senders or request disposal. The company notes this is “not a common practice” and that recipients are notified according to shipper direction in these rare cases.

DHL Express’s No-Disposal Policy

DHL Express takes a different stance, explicitly stating it does not dispose of packages that fail customs clearance. Instead, the company pushes to gather missing information within a 10-day window. If unsuccessful, DHL returns shipments to their origin, processing them for export before day 15 to ensure customs regulation compliance.

Understanding Customs Disposal Timelines

Standard freight shipments typically have 15 days to clear customs before disposal becomes a compliance option. Thomas Taggart, VP of global trade at international shipping provider Passport, explains that this timeframe maintains compliance with CBP requirements. The compressed timeline creates urgency for shippers to resolve documentation issues quickly, particularly for time-sensitive shipments.

Expert Strategies for Mitigating Customs Risks

Industry experts emphasize that proper preparation is crucial for avoiding customs complications in the post-de minimis environment.

Complete Documentation is Essential

Rathna Sharad, CEO of cross-border shipping platform FlavorCloud, identifies key information required by CBP: “Shippers must provide a 10-digit Harmonized System commodity code and the product’s country of origin.” Many formerly de minimis-reliant importers have struggled with these new documentation requirements, leading to clearance delays.

Addressing the Importer of Record Challenge, as detailed analysis

A significant complication arising from de minimis elimination is that U.S. buyers are now designated as the importer of record for many cross-border shipments. This shifts responsibility to end customers for releasing goods from customs and paying incurred fees, which can lead to purchase abandonment as consumers seek refunds instead of navigating complex customs processes.

Nick Baker, co-lead of Kroll’s trade and customs practice, clarifies the responsibility chain: “Once the package is in the US and pending customs clearance, it’s really the buyer’s responsibility to work with the carrier to clear the goods and tender any duties owed. Shippers would likely only be involved on the front end to ensure the carrier has contact information for the buyer.”

Proactive Solutions for International Shippers

Foreign merchants have several options to streamline the customs process and prevent customer dissatisfaction:

Third-Party Customs Brokerage: Work with experienced customs brokers to manage clearance on behalf of customers, particularly when using express carriers.
Foreign Importer of Record Status: Non-U.S. shippers can establish themselves as foreign importers of record, preventing end customers from being designated as importers.
Process Streamlining: As Passport’s Taggart recommends, “If you are a legitimate shipper and you want to streamline the process, you should get set up as a non-resident importer and get established.”

The elimination of de minimis protections has created a more complex landscape for international e-commerce. By understanding carrier-specific policies, ensuring complete documentation, and implementing proactive customs strategies, shippers can navigate these challenges while maintaining customer satisfaction during this transitional period.