{"id":37474,"date":"2020-07-01T22:24:17","date_gmt":"2020-07-01T22:24:17","guid":{"rendered":"https:\/\/shippingeasy.com\/?p=37474"},"modified":"2020-07-01T22:41:45","modified_gmt":"2020-07-01T22:41:45","slug":"usmca-international-changes","status":"publish","type":"post","link":"https:\/\/shippingeasy.com\/blog\/usmca-international-changes\/","title":{"rendered":"Upcoming International Packet Changes & NAFTA Becomes USMCA"},"content":{"rendered":"

In late 2019, a consortium of countries\u2019 postal entities agreed on a landmark change that will impact international shipping<\/a>. <\/span>As part of the Universal Postal Union\u2019s (UPU) Extraordinary Congress in late 2019, the body reworked the framework for what countries pay each other to deliver inbound packet shipments<\/span><\/span>. The change better reflects cost structures. Inbound shipments into the United States will now be set at a rate of 70% of a US domestic <\/span>equivalent<\/span><\/span> rate. <\/span>This also has the effect of many other national posts charging the United States more, unless the terms of a bilateral agreement moderate prices between the United States and the other country in question<\/span><\/span>. The date of this change is July 1. The NAFTA agreement is now called the United States-Mexico-Canada Agreement, or USMCA for short.<\/span><\/p>\n

International packet rate change<\/span><\/h2>\n
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To be clear, the USPS is not raising international rates across the board on July 1. <\/span>The only rates changing due to the outcome of the UPU Extraordinary Congress are for packet services<\/span><\/span>.\u00a0<\/span>Also, Customers who use ShippingEasy international shipping rates or single package international shipping labels will not see a rate increase on July 1<\/span><\/span>.\u00a0All inbound packet shipments into the US will pay higher postage on July 1. But, only commercial\/bulk outbound rates are changing. The retail rates will not change on July 1. <\/span>This is because the UPU agreement allows reciprocating countries to charge the USPS self-declared rates as well<\/span><\/span>. This results in higher prices for US export (outbound) packets to about 30 countries.\u00a0<\/span><\/div>\n<\/div>\n
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The United States\u2019 move to self-declared rates requires negotiation of new bilateral and multilateral agreements with foreign postal entities<\/span><\/span>. Some of these agreements are still <\/span>being negotiated<\/span><\/span>, as of this writing. <\/span>It is important to note that many shippers might see that fewer countries have a tracked packet solution on July 1<\/span><\/span>. <\/span>At the moment, only 23 countries have a tracked packet solution and the list is missing such common destinations as Brazil and Italy<\/span><\/span>. <\/span>USPS also said these negotiated solutions with foreign postal operators should improve service and reduce cost for US origin mail<\/span><\/span>.<\/span><\/div>\n<\/div>\n
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What does this mean for you?\u00a0<\/span><\/h3>\n<\/div>\n
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It is important to check your specific rates as of July 1 to see if your rates <\/span>are affected<\/span><\/span>. <\/span>Please note that the retail rate itself is not changing, and the rate inside of ShippingEasy itself is not changing; normal USPS price increases will occur at a later time in early 2021<\/span><\/span>. The current change affects only bulk mailers and shippers.\u00a0<\/span><\/div>\n<\/div>\n
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It is important to note that the GlobalPost product has its own agreements with international carriers to weather price increases like the ones coming July 1<\/span><\/span>. As a result, most merchants will not see a price increase as of July 1.\u00a0<\/span><\/div>\n<\/div>\n
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USMCA change<\/span><\/h2>\n
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On July 1, a major change to the United States\u2019 relationship with two of its most common trading partners will occur<\/span><\/span>. <\/span>The United States will now have a new trade relationship with Mexico and Canada\u2014the United States-Mexico-Canada Agreement (USMCA)<\/span><\/span>.<\/span><\/div>\n<\/div>\n
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The major change to the USMCA that impacts merchants is the\u00a0<\/span>de minimis<\/span>\u00a0threshold.\u00a0<\/span>De minimis<\/span>\u00a0is the <\/span>minimum<\/span><\/span> value of goods item below, where no duties and\/or taxes <\/span>are assessed by<\/span><\/span> Customs. The thresholds below are for shipments entering through an express\/commercial clearance method. This is not for standard postal ones, where the threshold remains $20 CAD.<\/span><\/div>\n<\/div>\n
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The new\u00a0<\/span>de minimis<\/span> value thresholds for commercial shipments into Canada (CA) and Mexico (MX):<\/span><\/span><\/div>\n<\/div>\n