As we know on 29th August, the U.S. will overhaul its de minimis threshold rules, meaning most low-value shipments will no longer breeze through customs duty-free.
DDP (Delivered Duty Paid) is the viable route for now whilst postal clearance options remain unavailable and untested. So the key is to determine how best to access DDP whilst remaining compliant, minimising cost, and maintaining the optimum customer experience.
For eCommerce brands, a couple ofthings to consider?
Will you absorb DDP charges, or will you pass them on to your customer?
Absorbing DDP charges may mean less steps at checkout and relatively higher cart retention. If passing on the charges do your shipping partners have the capability and tech to handle the calculations and compliance requirements? At MHI we can help with both approaches.
How can you optimise the levels of tax and duty paid?
It’s possible to compliantly reduce clearance cost through a B2B2C model, and viable if the shipper/retailer has a US entity acting as Importer of Record; a US-based website; and can provide Manufacturer IDs and commercial invoices. Additionally re-locating your inventory (or just the faster selling SKUs) to a US fulfilment centre can reduce import costs and improve delivery times. At MHI we specialise in providing bespoke solutions to meet immediate requirements and to support longer term transformational change
When should we make any changes?
Ensure that any changes are in place a few days before the 29th August to allow for transit times to the US - (remember there’s a UK bank holiday on Monday 25th).
There is no one-size-fits-all approach. The right delivery strategy depends on key variables, including:
· Product Type (HS Code)
· Sales Order Value
· Sales Channel - (eg. Website, Marketplace)
· Country of Origin (Manufacturing)
· Service Level Requirements
· Shipping Costs
· Tax& Duty Calculation
· B2B/ B2C / B2B2C
At MHI, flexibility is built in to our model. Whether your needs are best met through commercial or postal clearance (when available) methods, moving fast selling SKUs to the US for local fulfilment and shipping …. or a blended approach, we offer it all through a single, streamlined integration.
We help you strike the optimal balance between speed, service, and cost ensuring every delivery works in favour of your business and your customers.
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Our in-house experts are here to simplify complexity and minimise friction, whilst maximising results. With the right partner, navigating compliance, cost, and performance isn’t a challenge, it’s a competitive advantage.
