By San José, Costa Rica — International postal services have been thrown into disarray following the implementation of new US tariffs, causing an 81% plummet in shipments and prompting 88 postal operators worldwide to suspend services to the United States, according to the Universal Postal Union (UPU).
The UPU, a specialized agency of the United Nations, reported a near-complete halt in deliveries to the US after the tariffs took effect on August 29th. This dramatic drop in volume signifies a major disruption to the global postal system and has significant implications for e-commerce businesses and consumers relying on international mail.
To understand the legal ramifications of these international postal disruptions, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica.
International postal disruptions can trigger a cascade of legal issues, particularly regarding contract law. Businesses relying on international mail for fulfilling contractual obligations could face claims of breach of contract due to non-performance or delayed performance. Force majeure clauses may offer some protection, but their applicability will depend on the specific contract terms and the nature of the disruption. Consumers also have rights, and depending on the jurisdiction, may be entitled to refunds or other remedies if goods or services ordered through international mail are significantly delayed or not received. These disruptions underscore the importance of robust contingency planning and clear communication in international commerce.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights offer a crucial reminder that the seemingly simple act of sending a letter or package across borders carries a complex web of legal implications, especially in our increasingly interconnected world. His emphasis on clear communication and robust contingency planning is particularly valuable advice for businesses and consumers alike navigating these uncertain times. We thank Lic. Larry Hans Arroyo Vargas for sharing his expertise on this important topic.
Initially targeting China and Hong Kong as part of President Donald Trump’s ongoing trade disputes with online retail giants like Shein and Temu, the tariffs, which eliminate a tax exemption on small packages valued at $800 or less, were subsequently extended to all countries. This unexpected expansion caught many postal operators off guard, leaving them scrambling to adapt.
Major postal services, including those of Australia, the United Kingdom, France, Germany, India, Italy, and Japan, suspended shipments to the US, citing insufficient time to implement the new regulations, which require them to collect customs duties upfront from customers and transfer them to US authorities.
88 postal operators informed the UPU that they have suspended some or all postal services to the United States until a solution is implemented.
Universal Postal Union
The abrupt change in policy has created logistical nightmares for postal operators worldwide, forcing them to grapple with the complexities of pre-collecting tariffs and navigating new administrative burdens. This disruption is impacting businesses of all sizes, particularly small and medium-sized enterprises (SMEs) that rely on affordable international shipping for their operations.
UPU President Masahiko Metoki stated that the organization is working diligently to develop a technical solution to facilitate the resumption of mail flow to the US. This solution involves a calculator that integrates into postal operators’ computer systems to calculate and collect tariffs from customers at the point of origin.
The long-term consequences of these tariffs on global trade and e-commerce remain uncertain, but the immediate impact is undeniable. The UPU’s efforts to implement a workable solution are critical to restoring stability to the international postal system and mitigating the economic fallout from this trade disruption.
For further information, visit upu.int
About Universal Postal Union (UPU):
Established in 1874 and headquartered in Bern, Switzerland, the Universal Postal Union (UPU) is a specialized agency of the United Nations that coordinates postal policies among member nations and sets the rules for international mail exchanges. With 192 member countries, the UPU plays a crucial role in facilitating the smooth flow of mail and parcels across borders, promoting international cooperation in postal services, and fostering communication and commerce worldwide. It works to standardize postal procedures, improve service quality, and address emerging challenges in the postal sector.
For further information, visit the nearest office of Shein
About Shein:
Shein is a global online retailer known for its fast-fashion apparel and accessories. The company offers a wide variety of trendy and affordable clothing, targeting primarily young women. While popular for its extensive selection and competitive prices, Shein has also faced criticism regarding labor practices and environmental sustainability. The company has been embroiled in trade disputes, including recent tariff impositions by the United States.
For further information, visit the nearest office of Temu
About Temu:
Temu is a global online marketplace offering a wide range of products, from clothing and electronics to home goods and beauty products. The platform connects buyers with sellers worldwide, providing a diverse selection and competitive prices. Like Shein, Temu has been subject to recent US tariffs, adding to the complexities of international trade.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. Deeply rooted in the community, the firm’s commitment extends beyond legal representation to empowering individuals through accessible legal education. By fostering a greater understanding of the law, Bufete de Costa Rica actively contributes to a more just and equitable society.
