Post office suspends package shipments to US
The Bermuda Post Office has joined dozens of international carriers in suspending shipments of packages to the United States, following the removal of the duty-free exemption for parcels valued under $800.
Starting on Friday, all packages entering the United States will be subject to US Customs import duties, with only letters and small personal gifts exempted.
The decision aligns Bermuda with countries including Britain, Canada, Australia, India, France and several Caribbean nations that have halted services while they await clarity from American authorities. They have cited unclear rules for duty collection, data requirements and system readiness as reasons for the suspensions.
The Bermuda Post Office said the suspension was a temporary precaution to prevent customers from facing unexpected costs, delays or returned items. Officials pledged to resume service once systems are in place to process the new duties.
“Postal operators worldwide are working to adapt to these new requirements,” the post office said in a press release. “US Customs has not finalised guidance on how tariffs will be assessed or collected, and systems for processing these charges are still being developed.”
Local courier firms are also weighing the potential impact.
Kevin Smith, managing director of IBC Bermuda Ltd, confirmed his company would continue operating normally. “IBC Bermuda Ltd will not suspend service to the US,” he said.
On how customers may be affected, he noted: “Gifts under $100 are exempt from duty. Unless requested at time of shipping, the duty will be collected at delivery.”
Mr Smith added that it was “unknown at this time” whether shipping costs to the US would rise, but stressed that as IBC’s ZipX shipments originate from the US, “there is no need to implement any new systems”. He said Bermuda businesses would need to decide whether they preferred duty charges to be billed back to them or passed on to their recipients.
For small businesses, the changes add uncertainty. Roberta Munden, owner of Boho Couture in St George, said that although most of her products are imported from Italy and Greece, she does ship to the American market. “I have and do ship to some of our customers — maybe 10 per cent of our business is in the US,” she explained.
Reacting to news of the Bermuda Post Office suspension, Ms Munden was surprised. “The customer pays for the shipping so I would most likely use FedEx or UPS instead of the post office.” While acknowledging that courier services often charge more, she added: “I would try to keep prices the same and if the customers want to pay the shipping, we will ship no problem, if that makes sense.”
According to World Bank data, Bermuda exported goods worth $34 million in 2022, with the US accounting for more than 84 per cent of the total. While services make up the bulk of Bermuda’s overseas trade, the volume of exported goods has fallen sharply since the early 2000s, hitting a record low in 2021.