*
Delivery firms start collecting new e-commerce import
taxes on
goods from China
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New duties apply to millions of e-commerce purchases and
are
sending prices higher
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Bills for new duties show how Trump's trade and tax
policies
affect U.S. consumers
By Lisa Baertlein, Arriana McLymore and Helen Reid
LOS ANGELES/NEW YORK, Feb 6 (Reuters) - On Wednesday,
Matthew Cannon's college-age daughter forwarded him a request
from delivery company DHL asking for duties and fees of $45.19
tied to her order from Australian fashion seller I.Am.Gia. She
wanted to know if it was a scam.
She had ordered a $65 top to wear for Mardi Gras
celebrations in New Orleans on Tuesday, and paid for rush
shipping bringing the order total to $84.
DHL's message included breakdown of the fees, including
$26.88 for duties and $17 for handling, and said it was due
within five days from the package arrival date or the item would
be returned to the sender.
Prices will rise for Americans who buy $5 shirts, $10 lamps
and $20 shoes on direct-from-China shopping sites like Shein and
Temu after U.S. President Donald Trump this week imposed
10% tariffs on goods from China.
He also suddenly scrapped the so-called de minimis rule for
Chinese goods, a customs duty exemption on low-value packages
from China with the stated aim of stopping the flow of fentanyl
and precursor chemicals into the United States.
De minimis, a legal term referring to matters of little
importance, describes the U.S. waiver of standard customs
procedures and tariffs on items worth less than $800 that are
shipped to individuals from foreign countries.
American shoppers must now pay duties for small-value
direct-from-China orders, including for merchandise that was
already en route before the shift.
"This was a $65 top that she could barely afford and now she
has to pay $50 just to get it," said Cannon, who is chief
revenue officer at Reach, a Calgary, Canada-based company that
helps retailers in Europe, Australia and China sell into the
United States.
Similarly, on Tuesday, Clint Reid got an email from DHL
saying that a $197 order for 16 items including dresses,
sweaters and baby clothes from Shein would be returned to sender
if he did not pay $39.07 within five days of arrival.
That charge included $20.76 in import duties, $1.31 in
regulatory charges and $17 in duty tax processing.
E-commerce firms such as Shein, Temu and
Amazon.com's ( AMZN ) Haul service have proliferated to take advantage
of low-value duty-free shipments to U.S. shoppers.
As of February 4, shippers or receivers must pay duties on
all China and Hong Kong-origin products under the $800
threshold, regardless of how they are routed into the U.S.
Shein, Temu and Amazon ( AMZN ) did not immediately respond to
requests for comment.
Private delivery companies and the United States Postal
Service deliver millions of e-commerce packages that are now
subject to import taxes.
As bills for duties owed start hitting text message queues
and e-mail inboxes, U.S. shoppers are waking up to how Trump's
trade and tariff policies directly impact their lives - and
pocketbooks.
Shoppers in Europe, Canada and other markets with much lower
de minimis thresholds are familiar with paying duties on online
purchases, Cannon said.
"No one in the U.S. has any idea, they've never experienced
it unless they bought something really expensive and typically
if they buy something really expensive the retailer will cover
the duties," Cannon said. "It's going to be a nightmare."
DHL Express told Reuters it has a standardized set of fees
and handling charges that apply for the customs clearance
process. These fees are in addition to government taxes and
duties. United Parcel Service ( UPS ) the world's biggest parcel
delivery firm, said it also has systems and processes to
facilitate payment of duties. FedEx ( FDX ) did not immediately comment.
While sellers scramble to adapt, some are "eating the duties
in the short term," said Bernie Hart, vice president of customs
at Flexport, which offers customs, logistics and other
freight-related services.
In a message on its website, youth-oriented fashion seller
I.Am.Gia said U.S. customers would be asked to pay duties
through the delivery company. For orders placed from February 7,
the duties will be included in the price and partially offset by
"slight" adjustments to prices and shipping threshold. It did
not immediately respond to requests for comment.
Cider, a fast-fashion retailer that also ships direct to
U.S. shoppers from factories in China and elsewhere, had a
notice on its website saying shipping may be delayed "due to
extended customs clearance times". A spokesperson did not
immediately reply to Reuters questions about the delays.