This article provides an overview of US Tariff changes and impact on eCommerce
**Update as of February 7th , 2025**
As of February 7th, 2025, the de minimis exemption for imports into the United States has been temporarily reinstated. This allows shipments valued at $800 or less to enter the country without incurring duties.
In response to this update, Spaceship has eliminated the HKD 22 duty and tax handling fee for all Spaceship Air orders that are cleared after this date. Additionally, for other courier services offered by Spaceship, tax and associated handling fees will not be applied to shipments cleared after February 7, 2025, as long as they meet the de minimis threshold.
If you have paid these duties and fees for eligible Spaceship Air shipments cleared on or after February 7th, 2025, you can expect a refund to Spaceship Wallet within 5-10 business days. Our team will be processing these refunds promptly to ensure you receive the full benefit of the de minimis exemption.
General Information
On February 1st, 2025, President Trump signed executive orders implementing the following new tariff measures:
- 25% tariffs on imports from Canada and Mexico (with a 30-day pause currently in place)
- 10% additional tariffs on imports from China
- Elimination of the customs de minimis exemption for shipments under $800
These new tariffs will take effect on February 4th, 2025 at 12:01 AM Eastern Time, and they are likely to create backlogs and delays at U.S. ports of entry.
Impact on Spaceship Services:
Spaceship Air Priority, Economy and Standard - Duty and Tax Handling Fee:
Beginning February 5th, 2025, Spaceship will introduce a new duty and tax handling fee of HKD 22 for each shipment sent via Spaceship Air to the United States. This fee is essential to cover the increased administrative and processing expenses resulting from recent changes in U.S. import tariff policies, including the removal of the de minimis exemption and the introduction of additional duties on goods imported from China and Hong Kong.
Spaceship Air Cosmetics Service Suspension to the U.S.:
As of February 5th, 2025, the Spaceship Air Cosmetics service to the United States will be temporarily halted. The changes in trade policies that have led to the implementation of the new customs clearance fee have also posed significant logistical and financial challenges for our Spaceship Air Cosmetics service. Our team is diligently working on a new routing strategy and operational plan to resume the Spaceship Air Cosmetics service as swiftly as possible, with an anticipated return to service within the next 2-3 weeks.
HK Post Service Suspension to the U.S.
On February 4, 2025, the U.S. Postal Service (USPS) and Hong Kong Post have announced a temporary suspension of inbound parcel acceptance, effective immediately.
On February 5, 2025, the U.S. Postal Service (USPS) announced that it would resume accepting incoming international parcels from China and Hong Kong, reversing its earlier decision to suspend these services. Despite this development, there remains uncertainty surrounding the specific customs clearance procedures for these shipments. To maintain the smooth and reliable delivery of your orders, we have opted to temporarily suspend HK Post services to the U.S. until we gain more clarity regarding the new clearance processes and their reliability.
⚠️ Important Guidelines for Declaring Items to the United States
U.S. Customs and Border Protection (CBP) is cracking down on vague description of goods for all air shipments into the U.S.
For any non-compliant shipments, for example inaccurate declarations, or undeclared shipping items, the CBP may impose fines, force shipment return, or even dispose shipments.
Please refer to below page for reminders about item description
FAQ
Q: How will these tariff updates affect my shipping costs?
A: Your shipping costs may be affected in two ways:
- Duties: You will now have to pay import duties and taxes
- Duty and Tax Handling Fee: With the elimination of the customs de minimis exemption, all shipments to the US will be subject to applicable duties and taxes, regardless of the shipping terms. If you are shipping under DDP (Delivery Duty Paid), you can find information about the DDP handling fee in our Knowledge Base article on "Additional Surcharges". The DDP handling fee may vary depending on the courier service you use, so we recommend reviewing the details for the specific carrier you have selected.
Q: Can you provide FedEx, UPS, DHL and Spaceship Air DDP handling fees into US ?
- FedEx: Greater of $14.00 or 2% of duty/tax paid per shipment
- UPS: HKD150 per shipment
- DHL: HKD 105 or 2% of the duty and tax charges, whichever is higher, per shipment.
- Spaceship Air : HKD22 per shipment
Q: What is an HS code, and why is it important?
A: The Harmonized System (HS) code is a standardized system of names and numbers used worldwide to classify traded products. It's crucial because it determines the applicable tariff rate for your goods.
Q: How do I find the HS code for my product?
A: You can find information related to HS codes on the CBP website. Alternatively, you can visit the "Products" section on the Spaceship platform, we have a suggested 6 digits HS code for selected category.
Q: How can I determine the taxes and duties for my shipments to the U.S.?
A: To find the applicable tariff rates for your shipments, first, classify your product using its HS code. You can then visit this link for tariff information. Please be aware that this site has not yet updated to reflect the additional 10% tariff that will take effect on February 4, 2025.
Q: How can I automate the declared value for my US shipments?
A: There are a couple of ways you can automate the declared value for your shipments to the United States:
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Update Declared Value in the "Products" Page
You can easily update the "unit selling price" for each of your items by navigating to the "Products" section within the Spaceship platform. This can be done individually or in bulk using an Excel import for greater efficiency.
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Shipping Automation Rules
Spaceship offers advanced shipping automation capabilities that allow you to create custom rules based on various conditions. You can set up a rule specifically for shipments to the US, which will automatically update the declared value to the appropriate lower amount before shipping.
Q: Will I be charged for duties and taxes automatically, or will they be collected from the customer?
A: It depends on the tax handling terms you selected when creating the shipment and the courier service you used.
- DDP (Delivered Duty Paid): You, as the sender, are responsible for duties and taxes. For shipments in transit but not cleared before February 4, 2025, the adjustment will be billed to your Spaceship account.
- DDU (Delivered Duty Unpaid) or DAP (Delivered at Place): The recipient (your customer) is responsible for paying duties and taxes.
Q: For shipments already in transit, will they be affected by these new tariffs?
A: Yes, shipments in transit but not cleared by customs before February 4, 2025, will be subject to the new tariff rules.
Q: Who should I contact if I have further questions?
A: You can contact our business service team at business@spaceshipapp.com
Last Updated: 6 Feb 2025