Hongkong Post will cease shipping small parcels to the United States following the announcement by the U.S. government to impose tariffs on small-value parcels originating from the southern Chinese city. This decision by Washington will impact shipments from Hong Kong beginning on May 2.
The U.S. government has declared it will terminate a customs exception, previously allowing small-value parcels from Hong Kong entry into the U.S. without taxation. As per the new rule, a 120% tariff will be imposed on parcels valued below $800, which currently benefit from the “de minimis” exemption and are tax-free.
According to a government statement, Hongkong Post will not collect these tariffs on behalf of the U.S. government. Consequently, it plans to halt the acceptance of non-airmail parcels containing goods for U.S. destinations starting Wednesday, as sea shipments require a longer time. Airmail parcels will continue to be accepted until April 27.
The government noted that individuals sending items to the U.S. from Hong Kong should anticipate higher fees as a result of these policies, which were described as unreasonable.
Hongkong Post will continue processing mail that contains only documents. The trade tensions between the U.S. and China have positioned Hong Kong in a challenging situation, despite its status as a free port.
Since Hong Kong’s return to Chinese rule in 1997, it has maintained distinct trade and customs regulations from mainland China under the semi-autonomous governance provided during the handover from Britain. However, the U.S. has started considering Hong Kong as part of China after Beijing introduced a national security law in 2020, which led to the application of tariffs similar to those on Chinese imports.
This national security law is claimed by China to have reinstated stability in Hong Kong, though it has also significantly diminished dissent within the city.