iscoverAustralia Post has suspended small parcel shipments to the US “until further notice”. BDO says this will present new complexities for small Australian exporters.
Australia Post’s US parcel suspension brings fresh complexities for SMEs, BDO says
29 August 2025
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8 minute read
On Tuesday (26 August), Australia Post announced that it would temporarily suspend postal services to the US and Puerto Rico due to recently announced US tariff changes.
BDO customs, international trade and excise partner Leonie Ferretter said that the suspension would create fresh complexities for small Australian businesses that rely on affordable postal services.
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“For smaller businesses and businesses that ship B2C, this change introduces immediate logistical and financial challenges,” Ferretter wrote.
“Many rely on Australia Post’s cost-effective parcel services to maintain international customer relationships and grow their presence in the US market. With the suspension in place, businesses must now consider alternative shipping providers, often at significantly higher cost, or wait for Australia Post’s service to resume.”
Ferretter warned that the suspension of parcel services to the US would affect a broad range of Australian SMEs, especially those with niche product categories. Small exporters are set to face increased costs, administrative overhead and customer disruption while the suspension continues.
From 29 August 2025, the US would suspend duty-free de minimis for all countries. Under prior rules, goods valued under US$800 could enter the US without customs duties or inspections.
BDO noted that transportation carriers would collect the duties using one of two methodologies.
In one methodology, countries with an effective US tariff rate of less than 16 per cent, including Australia, would attract duties of US$80 per item.
Those with tariff rates between 16 and 25 per cent would see per-item duties of US$160, while countries with tariff rates above 25 per cent would see duties of US$200 per item.
The latter methodology would apply a duty equal to the country’s effective tariff rate, assessed on the value of each dutiable postal item. In Australia’s case, this would be 10 per cent for most goods.
Ferretter said these requirements would impose fresh complexities for small Australian exporters.
“Each transportation carrier must apply the same methodology across all shipments during any given period and may change it no more than once per calendar month, with 24 hours’ notice to [US customs].”
“Additionally, the country of origin must be declared for all international postal shipments. These requirements add complexity for exporters, who must now ensure accurate tariff classification and origin documentation for each shipment.”
Ferretter also flagged that SMEs that exported to the US would need to create an account with Zonos, a third-party provider authorised by US Customs and Border Control. Australia Post had partnered with Zonos to support compliance with new US regulations.
“Zonos will enable businesses to meet the requirement that all duties are prepaid prior to shipment by offering a solution to calculate, collect, and remit duties and taxes before goods arrive in the US.”
She added that Australian SMEs that exported to the US would need to re-evaluate their international shipping strategies in light of the Australia Post suspension. This may include looking for alternative shipping providers or waiting for Australia Post’s service to resume.
“Beyond the immediate operational challenges, this shift signals a broader need for small businesses to reassess their international shipping strategies,” Ferretter wrote.
“Businesses may need to explore alternative logistics providers, invest in digital customs compliance tools, or adjust pricing models to account for new duties and taxes.”
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