Mailboxes CEO says Bermuda can adapt to US shipping changes
One of Bermuda’s largest shipping services has said the island can weather new US Customs rules, even as the Bermuda Post Office suspends its package service to the country.
Last week, the post office announced it would halt shipments of packages to the US effective tomorrow, after the removal of the duty-free exemption for parcels valued under $800.
That change, known as the “de minimis” rule, has led postal providers in dozens of countries — including Britain, Canada, France, India and several Caribbean nations — to suspend shipments while they await clarity from American authorities.
Bricen Hakeman, chief executive of Mailboxes, told The Royal Gazette that his company has not restricted exports. “Mailboxes is not concerned, nor has it restricted exports from Bermuda to the US as postal providers have,” he said. “We work closely with courier counterparts, such as DHL, to ensure shipments leave Bermuda and arrive at their destination in a timely fashion.”
He said clients should expect some changes, however. “Clients should be prepared to pay US Customs duty on goods valued over $100, unless they are returning an item initially purchased from a US vendor,” Mr Hakeman explained. “They must also be able to provide proof of value and, in some cases, information such as an EIN [employer ID number] or social security number for recipients.”
Mr Hakeman acknowledged that there will be some impact but said it would be “neither existential nor insurmountable”. He added: “Our business is built on three core pillars: speed, passion and integrity. We are confident in our ability to adapt to an ever-changing environment.”
To help offset rising costs, Mr Hakeman said Mailboxes made a strategic decision on August 18 to eliminate dimensional weight charges, which he described as “a monumental change that, on average, equates to a 10 per cent price reduction for our customers”.