Big Changes Ahead for UK Greeting Card Exporters to the U.S.

On July 30, 2025, President Trump signed an Executive Order eliminating the de minimis exemption for all countries, effective August 29, 2025. Originally planned for 2027, this fast-tracked change will significantly impact small businesses — including UK greeting card publishers exporting to the U.S. 

But there’s good news: recent updates from Royal Mail offer a more manageable path forward.

Royal Mail’s Response: What Exporters Need to Know

In a recent video update, Andrea Collins from the Global Trade Department shared key developments following a meeting with Royal Mail’s senior team: 

  • Royal Mail will not apply a flat rate structure for U.S. shipments.
  • They will extend their Delivered Duties Paid (DDP) service to cover the U.S.
  • This means UK businesses can prepay customs duties and VAT, ensuring recipients avoid surprise charges.

How DDP Works?

Deliver Duty Paid (DDP) is a shipping arrangement where the seller/exporter takes full responsibility for paying all duties, taxes, and customs clearance fees before the goods arrive in the destination country. This means the buyer receives the goods without having to deal with unexpected charges or customs delays.

Under Royal Mail’s DDP (also known as PDDP):

  • Duties are calculated by Zonos at the point of booking.
  • Royal Mail invoices the seller, who prepays the duty. 
  • The parcel arrives in the U.S. with no additional fees or delays for the customer.

For Example: A Greeting Card 
Product price: £5 
Shipping: £2.50 
Total declared value: £7.50 
10% duty: 75p (prepaid by the seller)

Key Takeaways from the Global Trade Department;

  • Royal Mail’s DDP service will simplify U.S. exports.
  • No HS codes required for postal shipments.
  • Only the 10% IEEPA tariff will apply to UK-origin goods.
  • Royal Mail is working with platforms like Etsy and eBay for smooth integration.
  • The Click & Drop service will be updated to include U.S. DDP functionality.

Andrea emphasised: don’t panic or switch off U.S. sales prematurely. Royal Mail is actively preparing and supporting exporters and you can read their official response here

We are encouraging GCA members to watch Andrea’s Webinar and Royal Mail update video’s below;

Expert Insights: Royal Mail Webinar on U.S. Export Changes

To help small businesses navigate the recent changes in international shipping regulations, please watch the detailed webinar below, hosted by Andrea Collins, Global Trade Department with Martha Roberts, Head of Customer Success and Charlotte Prescott, Director of Customs and International Policy at Royal Mail.

The session focuses on the impact of the removal of the U.S. de minimis exemption and the introduction of new tariffs, particularly for UK exporters. It offers practical guidance on:

  • Navigating customs, tariffs, and origin rules
  • Using Royal Mail’s Postal Delivery Duties Paid (PDDP) services
  • Understanding exemptions (e.g. for artworks and cultural items)
  • Managing shipments via platforms like Etsy and eBay
  • Ensuring accurate documentation to avoid delays or unexpected charges

The experts also address FAQs around packaging, returns, and account setup, and encourage businesses not to be discouraged by the changes — with ongoing support promised through tutorials and updates.

Prior to Royal Mail’s Latest Update: What Was Originally Proposed

Previously the de minimis exemption allowed shipments valued under $800 to enter the U.S. without paying import duties or taxes. It’s been a lifeline for:

  • E-commerce platforms like Faire
  • Direct-to-consumer orders
  • Small wholesale shipments

From August 29, every shipment will be subject to tariffs and customs clearance. 

New Clearance Types : What’s Changing?

Shipments will now need to be cleared as either:

  • Informal Type 11: For goods valued between $800–$2,500. No customs bond required, minimal paperwork. 
  • Formal Type 01: For shipments over $2,500 or regulated items. Requires more documentation and a customs bond.

Tariffs may include:

  • Standard duty rates
  • Section 301/232 tariffs (if applicable)
  • IEEPA tariff — a 10% duty on UK goods

Postal shipments will only incur the IEEPA tariff, but there was a concern about a blanket $80 duty being applied to avoid customs delays.

What Is the IEEPA Tariff?

The IEEPA tariff is a special kind of import tax created under a U.S. law called the International Emergency Economic Powers Act (IEEPA). This law gives the U.S. President the power to take action — including imposing tariffs — in response to a national emergency involving foreign countries.

In simple terms:

  • The U.S. government is using IEEPA to add a 10% tariff on goods from the UK, including greeting cards.
  • This tariff is on top of any other duties that might apply to commercial shipments.
  • All shipments include the IEEPA tariff — which would simplify things, since you wouldn’t need to include a product code (HS code). 

However it was proposed postal shipments were going to be subject to an $80 duty fee until January, but now it looks like Royal Mail have a solution as detailed above.

Impact on UK Greeting Card Exporters

Many UK brands rely on small-value exports to the U.S., especially via platforms like Faire. These changes could:

  • Increase costs for U.S. customers
  • Reduce margins for UK publishers
  • Cause delays and unsold stock

Even with a favourable UK-U.S. trade relationship, lower-priced UK goods will likely become more expensive for American buyers.

Advice from The US GCA

The GCA spoke to our American counterparts and Andy Meehan the US GCA president offered some advice prior to the latest Royal Mail Update;

Courier vs Postal: What’s the Difference?

Postal (Royal Mail → USPS)

  • Temporary $80 flat fee.
  • No HTS code required.
  • Known issues: delays, poor tracking, customer confusion.

Courier (DHL, FedEx, etc.)

  • Requires HTS code: 4909.00.4040 for printed greeting cards.
  • 0% standard duty + 10% IEEPA tariff.
  • More reliable for professional exporters.

However please note that it now appears that Royal Mail have a solution to these issues as detailed in the text above.

Country of Origin Risks

Only cards truly made in the UK qualify for the 10% tariff. If materials (paper, envelopes, finishes) are sourced from China or India, U.S. Customs may apply transshipment tariffs up to 40%. Make sure to verify origin compliance with your printer or manufacturer. 

Should You Rethink U.S. Fulfilment? 

If U.S. sales are a meaningful part of your revenue, consider: 

  • Partnering with a U.S.-based distributor
  • Working with a 3PL fulfilment provider
  • Speaking to your Royal Mail account manager

These options can reduce delays, simplify customs, and protect margins, however it now appears that Royal Mail have a solution as detailed in their official update so please speak with your Royal Mail Account Manager for further clarification.

Summary Checklist for GCA Members

  • Review your U.S. shipping strategy 
  • Switch to international couriers where possible to avoid flat postal duties.
  • Avoid transshipping through third countries — this could lead to a 40% penalty.
  • Prepare for customs clearance on all shipments, regardless of value.
  • Factor in the 10% IEEPA tariff on UK goods when pricing for U.S. customers.
  • Stay updated — GCA will share further guidance as it becomes available.

While the removal of the de minimis exemption presents new challenges, Royal Mail’s updated DDP service offers a practical solution for UK greeting card exporters. The GCA will continue to monitor developments and provide guidance to help members navigate this transition.

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