Parcel Networks vs. Postal Network: What Every Merchant Needs to Know After De Minimis 

Summary:

Starting August 29, 2025, the end of the $800 de minimis exemption makes postal network shipping costly and risky, with flat fees up to $200, stricter compliance, and widespread service suspensions. Parcel networks are now the only reliable path for cross border ecommerce offering compliance, visibility, and resilience at scale.

Introduction

The way goods move across borders is changing faster than ever. For years, many ecommerce merchants relied on postal and parcel networks to move low-value items into the United States under the de minimis exemption. That exemption allowed shipments valued under $800 to bypass duties and enter with minimal customs scrutiny, making postal shipping the cheapest option for many businesses. 

That era is ending. On August 29, 2025, the U.S. government is suspending duty-free de minimis treatment for all shipments, including postal. Ahead of this change, postal operators across Europe and Asia—including Royal Mail (UK), Deutsche Post (Germany), La Poste (France), Japan Post, and Singapore Post—have already announced suspensions or restrictions on outbound parcels to the U.S.. For brands that have long relied on postal to keep costs low, these changes mark a turning point. Postal is no longer the low-cost, low-compliance channel it once was. 

What is the difference between postal and parcel?  

Before diving into the growing advantages of a network approach, it’s important to understand the distinct roles of postal and parcel logistics. 

Postal Services: 

 Traditionally designed to handle letters and lightweight packages, postal services operate through a web of agreements between national postal operators. When a shipment leaves its origin country, the domestic postal service hands it off to the destination country’s postal system—sometimes passing through multiple intermediary networks along the way. This “handshake” system makes international delivery possible, but it also means merchants and consumers are relying on the weakest link in a chain of separate, state-run organizations with varying levels of reliability, technology, and service standards.

Historically, postal networks were built for correspondence, not commerce. They had no mechanisms to collect duties and taxes at the border, nor did they ensure accurate product classification for customs. That meant shipments often arrived without the proper documentation or tax paid, creating compliance issues, unexpected fees, and delivery delays. While improvements like electronic customs data have been introduced, postal networks still lag behind integrated parcel carriers in their ability to provide end-to-end visibility, predictable delivery times, and compliant cross border processing. 

Parcel Logistics:

Purpose-built for ecommerce and consumer goods, parcel carriers operate integrated networks that span first-mile pickup, international transport, customs clearance, and last-mile delivery. Unlike postal systems that hand shipments across multiple operators, parcel networks maintain direct control or partnerships across the full journey, giving merchants and consumers more consistent service levels. 

 These networks are optimized for speed and scale. Automated hubs and sophisticated routing technology ensure packages move quickly through sorting facilities, while dynamic carrier partnerships provide multiple options for cost, transit time, and service level. End-to-end tracking is standard, with real-time visibility into where a shipment is at any given moment. 

 Critically, parcel networks are built with compliance in mind. They can collect duties and taxes upfront, classify products accurately, and integrate with customs systems to prevent clearance delays. For merchants, this means a smoother customer experience with fewer surprise fees and greater predictability.  

New duty structures for postal shipments 

With the suspension of de minimis, postal shipments into the U.S. will now face structured duty assessments that carriers must apply on every package. Under the new rules, operators such as Canada Post, Royal Mail, or La Poste have two options.  

• Ad valorem method: A % duty = the “effective IEEPA tariff rate” for the country of origin × the package’s value. 
  • (IEEPA tariff rates are the national emergency tariffs imposed earlier this year—stacked across multiple Executive Orders.) 
• Specific duty method: A flat fee per package based on the tariff rate category of the country of origin: 
  • If tariff rate <16% → $80 per package 
  • If tariff rate 16–25% → $160 per package 
  • If tariff rate >25% → $200 per package 
  • Carriers can use this option only for 6 months after Aug 29, 2025. After that, all postal shipments must use the ad valorem method. 

For a six-month transition period beginning August 29, 2025, carriers may instead opt for a specific duty method, applying flat-rate fees per package based on the tariff bracket of the origin country. After this period, all postal shipments will default to the ad valorem approach. Regardless of method, every shipment must declare its country of origin, and products subject to antidumping, countervailing duties, or quotas must still go through a full CBP entry filing in Automated Commercial Environment (ACE). 

To enforce these changes, U.S. Customs and Border Protection (CBP) will also introduce stricter compliance requirements. Import bonds may be required even on small-value shipments under $2,500, and international carriers moving postal parcels into the U.S. must carry bonds that guarantee payment of all duties owed. This effectively makes USPS, foreign postal partners, or their intermediaries financially responsible for ensuring duties are collected and remitted. Which effectively closes the last gaps in the system that previously allowed small packages to bypass customs controls. 

Why is postal shipping more difficult after the de minimis exemption suspension? 

For decades, postal worked because it operated in the shadows of global commerce. Low-value parcels could “fly under the radar,” avoiding duties, taxes, and full customs entry. This was especially attractive to merchants shipping inexpensive apparel, accessories, beauty, and home goods directly from overseas factories or distribution hubs like Shein and Temu.  

But the suspension of de minimis has stripped away Postal’s biggest advantage. Under the new rules: 

• Postal packages are subject to flat fees of $80–$200 per parcel, depending on country-of-origin tariff levels, or an ad valorem duty equal to the IEEPA tariff rate. 

• Customs compliance is now mandatory. Postal shipments must declare country of origin and remit duties through carriers, closing the loopholes that allowed packages to slip past CBP. 

• Many postal services abroad have preemptively suspended U.S.-bound services rather than risk noncompliance. This includes operators across Europe and Asia who collectively move millions of parcels a month. 

Most importantly, postal networks were never designed for this level of regulatory oversight. Unlike parcel carriers, they don’t have the infrastructure to calculate landed costs, collect duties and taxes upfront, or transmit complete electronic customs data. Faced with the sudden responsibility to manage compliance at scale, many operators have chosen suspension over retrofitting systems that weren’t built for modern ecommerce.  

The result is a perfect storm: higher costs, fewer available channels, and rising compliance risks. Instead of being a shortcut, postal has become a liability. 

Why parcel networks are the future 

By contrast, parcel logistics networks are built for exactly this environment. Unlike postal, which was never designed to support high-volume ecommerce trade, parcel carriers are equipped with the infrastructure, data integration, and customs processes needed for compliance. 

• Cost efficiency with alignment to value. Instead of flat postal charges, parcel networks offer rates scaled to shipment value, service level, and destination. A $20 T-shirt won’t automatically face a $160 duty fee simply because it was mailed through a postal channel. Though still will now have to pay general duty and tariffs based on the item and country of origin.  

• Advanced visibility and tracking. Parcel providers integrate with ecommerce platforms to provide real-time updates, exception alerts, and delivery estimates. This transparency is now a baseline consumer expectation that postal networks cannot match. 

• Scalability and resilience. International growth demands flexibility across lanes, carriers, and product types. A parcel network approach allows brands to diversify risk—so if one carrier or lane is disrupted by policy, weather, or geopolitics, others can keep goods flowing. 

• Compliance and customization. Parcel networks support Harmonized Tariff System (HS) product classification, localized tax and duty calculation, and specialized services like returns or temperature-controlled shipping. This reduces clearance delays and ensures goods reach customers as promised. 

Comparing Postal vs. Parcel 

Conclusion 

The postal era of cross border ecommerce is over. With the suspension of de minimis, flat fees that can exceed the value of the goods, and widespread suspensions of outbound U.S. services by major European and Asian posts, international postal shipping is no longer a viable option for merchants. 

A parcel network approach leveraging multiple carriers, advanced AI driven customs and classification integration, and scalable logistics is now essential. It not only ensures compliance but also protects margins, improves delivery reliability, and safeguards the customer experience. 

For brands planning their global strategy, the choice is no longer between postal or parcel. It is between disruption and resilience. And resilience comes from a parcel network.

If you are concerned about the de minimis suspension or shipping postal, book a meeting with one of our experts.