So while other Chinese suppliers can ship to other countries like Canada with reduced shipping rates the same way they would to the U.S., the de minimis value in Canada is closer to $100 meaning consumers get hit with annoying duties and taxes upon delivery for anything over this amount. This means any package shipped under $800 to the United States gets to enter duty-free. Not only do Chinese suppliers get the benefit of shipping for cheaper than you can, but they also get to ship their products to consumers duty-free. A Double Whammy – De Minimis Raised in 2016 to $800 Without ePacket, the total volume of packages coming from Chinese suppliers would almost certainly be lower. However, ePacket provides exceptional tracking and delivery times – two critical demands of ecommerce consumers. The agreement USPS made with China for ePacket wasn't that stupid. USPS actually loses less money with ePacket than if Chinese suppliers shipped with regular mail and the rates set by the UPU. The UPU has fallen behind on times and hasn't adjusted for the sudden surge in ecommerce or China's newfound wealth and unfortunately, nothing is changing for at least a couple of years (see below for what may change in the future and what you can do in the meantime). Seems well-intentioned right? Well, then ecommerce happened. Its original goal was to allow people and businesses to mail letters for a flat rate anywhere in the world and it also helps subsidize poorer countries' mail delivery. The Universal Postal Union (UPU) is one of the oldest international organizations in the world dating back to the 19th century. USPS is bound by an agreement with the Universal Postal Union (ever heard of it? Me neither). So why would USPS make such a stupid agreement? Well, it's not necessarily USPS's fault. congress held meetings regarding the subject in 2015. In fact, in 2014 USPS reported that they lost over $75 million delivering foreign mail. USPS reports its loses, on average, to be $1.10 for each package it delivers from China. It's $1 cheaper to ship from China to the USA than from the USA to the USA. is about $1 cheaper than from within the United States. But here's the kicker – shipping a package from China to the U.S. What an ePacket basically boils down to is that merchants in Hong Kong and mainland China could now ship packages up to 4.4 lbs, with tracking and 7-10 business day delivery times. In 2010-2011, USPS entered into an agreement with Hong Kong Post and China Post that came into effect in 2011 to offer a shipping option called “ePacket”. Related Listening: Shipping From China Made Easy with Freightos The Background – In 2010, USPS Makes a Deal with China Post/Hong Kong Post Is this the end of ePacket and cheap shipping from China? Continue reading to understand the history of ePacket and understand whether it's the end of cheap shipping from China. In September 2019 this was all set to change, however, the Universal Postal Union and the United States reached a deal that will allow countries to set rates for individual countries more freely. Update October 2018: The Trump administration has announced plans to pull out of the Universal Postal Union which would effectively end ePacket.įor many years, sellers in China have been able to ship for less from China to America than local American sellers can domestically, thanks to something called ePacket. and United Nations reached a deal that would keep America in the Universal Postal Union in return for more flexibility in setting their own postal rates. Update J– The rate increases to occur over the next 5 years have been announced (see below). Update – Since January 1 of 2021, countries with more than 75,000 metric tons of inbound mail per year can set their own terminal dues rates.
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