A decision by Australia’s postal service to halt services to the United States could cost small to medium businesses hundreds of dollars more to get their products to America.
Australia Post announced the temporary ban on items worth more than $A150 on Tuesday, saying it was effective immediately.
The government-owned entity’s decision is in response to recent significant changes by the US government to customs and import tariff rules for parcels sent to America.
Those changes include the US suspending the “De Minimis” exemption for inbound goods valued below $US800 ($A1200) and requiring the pre-payment of tariffs before items arrive.
The temporary suspension will impact business contracts, MyPost deliveries and retail customers sending goods through the postal network to the US.
Gifts under $US100 ($A150), letters and documents are unaffected.
Australian businesses are expected to still be able to send parcels to the US through more expensive commercial models such as DHL and FedEx.
Small and medium business owners were figuring out how they could still get their products to American consumers, Shippit CEO Rob Hango-Zada said.
Shippit works with Australia Post and a wide network of carriers to send parcels overseas.
Mr Hango-Zada told AAP the shift to commercial postal services would likely be more expensive, but a necessity if businesses wanted to continue to trade.
Australia Post is not the only postal operator to pause operations to the US.
Postal services across Europe have already suspended most parcel shipments to the US, including France’s La Poste, Germany’s Deutsche Post, Spain’s Correos, Poste Italiane and the Belgian, Swedish and Danish postal service.
Austria’s Osterreichische Post and the UK’s Royal Mail are expected to stop sending parcels to the US by the end of August.
Australia Post was working with Zonos, an authorised US Customs and Border Protection third-party provider, on a solution for business customers, executive general manager for parcel, post and ecommerce services Gary Starr said.
“We are disappointed we have had to take this action,” he said.
“A temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers.
“Australia Post continues to work with US and Australian authorities and international postal partners to resume postal service to the US as a priority.”
FedEx regional vice president Peter Langley confirmed his company would continue to transport shipments from Australia to the US.
“As an express carrier, our international express offerings are not impacted by the decisions of postal operators,” Mr Langley said in a statement to AAP on Tuesday.
Communications Minister Anika Wells slammed President Donald Trump’s tariffs.
“We don’t agree with the tariffs and we are working closely to try and do everything we can to make sure that the impact of tariffs on Australian businesses are eased as quickly as possible,” she said in parliament.
Australia Post’s suspension includes parcels to Puerto Rico, as it is a US Customs territory and has been impacted by tariff changes.
Postal goods sent to the US and Puerto Rico lodged on or after Tuesday will not be accepted by Australia Post until further notice.
It comes a day after Australia Post announced it would hire 3500 seasonal staff ahead of the Christmas period.
Customers seeking an update can check the Australia Post website or call 13 POST (13 7678).
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