Barbados explores alternatives after US ends duty-free exemption on small parcels

The Barbados Government is actively seeking long-term solutions to maintain international mail services following the United States’ suspension of the de-minimis duty-free exemption on small packages valued up to US$800.

Minister of Home Affairs Wilfred Abrahams said the Barbados Postal Service (BPS) has already implemented contingency measures to mitigate disruptions and is coordinating with international partners to ensure the continuity of mail services.

Local authorities temporarily suspended all outgoing mail containing goods to the United States and its territories from Wednesday, after US President Donald Trump ordered the change in US customs regulations.

Abrahams said the US measure, which came into effect on Friday, requires full customs processing and duty collection on all incoming items, not only postal items, regardless of value.

Previously, a de minimis exemption of goods valued up to US$800 applied, while documents remained exempt. But Abrahams said the executive order “creates significant operational and financial challenges for international postal operators and carriers, which operate into the United States and its dependencies.”

The restriction also includes the US territories of Puerto Rico and the US Virgin Islands in the Caribbean, and the Pacific islands of American Samoa and the Northern Mariana Islands, the minister for the postal service said.

“Airlines have confirmed their inability to transport items containing goods to the United States without advanced duty collection and indemnification arrangements,” he said. “Indeed, one carrier operating between Barbados and the US has already given notice that, with immediate effect, it is also not accepting letters or documents into the US.”

The Universal Postal Union (UPU) has recognised the sovereignty of the US to implement this measure, and the Barbados government has done likewise, Abrahams said.

He added: “We are coordinating with member countries to explore appropriate long-term compliance solutions. Given the lack of immediate operational readiness across the global network and to mitigate risks of liability and service disruption, the postmaster general has recommended, and I have agreed, that Barbados has no option but to suspend the acceptance of all outbound items containing goods destined for the United States and its territories with effect from [Wednesday] until further notice. So, we have already started.”

“This suspension applies to parcels and small packets as well as express mail service goods parcels and small packets,” Abrahams explained. “Importantly, please note, the dispatch of correspondence including EMS documents will continue. This suspension has negatively affected a few customers whose packages were already accepted for delivery. They will be contacted and arrangements will be made for them to use DHL, a Barbados Postal Service pro-branded international express service, and if they choose not to use this option, they will be refunded in full.”

He advised that the DHL-BPS international express service is a premium option that offers reliable, trackable delivery for time-sensitive documents and merchandise-based consignments and serves as a practical alternative during this period.

The Barbados Postal Service is advising customers that the DHL-BPS pro-branded international express service remains operational for both documents and merchandise shipments into the US.

Abrahams continued: “Please be advised that, as much as we are trying to provide options because of widespread disruptions, in some instances there will be mail delays. We advise, as well, that in addition to the DHL-BPS service, there are other international courier options available. Understand that these are not partnerships with the Barbados Postal Service, and the postal service cannot be responsible for your arrangements with them. So, you can contact these persons directly for further information.”

He said the postal service will continue to engage with the UPU, international partners and US authorities towards a resolution or workaround, and will be updating the public accordingly.

“This is not a Barbadian or even a regional problem.” said the home affairs minister. “This situation has international repercussions and impacts. While this directive affects mail delivery to the US, and has the potential to affect delivery of other international mail that normally transits through the US, the BPS has already made arrangements to transit the majority of other international mail, that otherwise would have been affected, through Canada.

“We are exploring all options to minimise the disruption to Barbadians while still securing and maintaining the integrity of our mail delivery systems. We thank all Barbadians for their understanding and cooperation during this period of adjustment, and we will keep the public fully informed of all developments in this sphere.” 

The ending of the minimum exemption on goods parcels is part of a sweeping range of tariffs–including a 15 per cent duty on Barbadian goods– imposed by Trump as a key international economic policy tool since coming to power in January. 

But on Friday, the policy ran into its first major roadblock in the courts, as US appeals judges ruled that most of the tariffs are illegal, undercutting the Republican president’s use of the levies.

The court allowed the tariffs to remain in place through October 14 to give the Trump administration a chance to file an appeal with the US Supreme Court. 

emmanueljoseph@barbadostoday.bb