Shipping Disruption for New Zealand Businesses to the United States
A small business proprietor in Wellington has encountered significant challenges, having to reimburse approximately $500 due to halted shipping services to the United States.
NZ Post instituted a suspension of various shipping methods to the US last Thursday, following the implementation of a 15 percent tariff by US authorities.
Artist Pepper Racoon articulated her trepidation regarding the viability of her “very small business,” noting that US clients constituted 20 percent of her revenue. She reflected, “I have navigated numerous adversities during my eight years in business—from the impacts of COVID-19 to the current cost-of-living crisis. Establishing a foothold in the US market, with a consistent income stream from there, was invaluable. Now, I find myself uncertain about the path forward, a sentiment I believe resonates with many other small enterprises.”
Despite indications from NZ Post of a provisional suspension, Racoon remained dubious about when shipping to the US might resume. She recounted, “My initial understanding was that US Customs would approach customers directly to gather tariffs. Instead, we, as overseas businesses, are now burdened with the responsibility of collecting and remitting those tariffs—a process that necessitates utilizing certified brokerage services, which involves considerable fees.”
She cited a company that charges $4,000 annually for tariff integration with her e-commerce platform, Shopify, a sum she cannot accommodate amidst her ongoing operational costs.
Raccoon’s predicament is not isolated. Daan Kolthoff, owner of South Pacific Berets, revealed that 90 percent of his clientele resides in the US. He shared the arduous task he faced over the weekend, processing refunds for affected customers, a challenging maneuver for such a niche market.
“It’s excruciating to contact and refund customers when the timeline for resolution remains unclear,” Kolthoff lamented. “I’ve also had to cancel numerous orders and announce on my website that US customers can no longer place orders. This situation is severely detrimental to my business.”
NZ Post declined an interview opportunity with Morning Report on Monday; however, the organization released a statement indicating its commitment to adapting swiftly to restore shipping services.
A spokesperson explained, “Recent directives from US Customs & Border Protection mandate various adjustments for both NZ Post and businesses, including modifications to shipment data, duty and tax payments, and the processing of goods entering the US.”
They further noted that primary airline partners had opted not to transport mail items subject to these tariffs.
Previously, NZ Post had indicated some restrictions on items that could be dispatched to the US and its territories, leading to the temporary suspension of numerous services “until further notice” while the processes surrounding the new tariffs are solidified. The only available services currently involve sending economy letters and express documents.
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Source link: Rnz.co.nz.
