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Person picking up a UPS package left at their front door. The Bold Bureau/Getty Images

UPS is now ‘disposing of’ packages piling up in its US warehouses — why thousands of shipments have been lost to ‘customs purgatory’

Frustrated UPS customers are speaking out about missing packages as thousands of U.S.-bound shipments are stuck at hubs across the country.

The new customs requirements from the Trump administration has been catastrophic for the world’s largest courier, which told NBC News it has been forced to start “disposing of” some shipments. [1]

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The news outlet spoke to more than two dozen people waiting for their UPS packages, which included items like tea, telescopes, luxury glassware, musical instruments, books, a pillow and a backpack. Some described weeks of receiving conflicting tracking information that said the package was on the way or had been destroyed due to not clearing customs.

“It’s almost impossible to get through to anybody to figure out what is happening,” said Ashley Freberg. “Are my packages actually being destroyed or not?”

“The sweeping changes have caught private individuals and veteran exporters alike in a customs conundrum,” said the report. “It is difficult to know the exact number of the packages that are stuck in UPS customs purgatory.”

Here’s what you need to know about how new tariff laws are impacting international shipping, and what you can do if you’re one of the unlucky customers who has been impacted by the customs backlog.

Updated tariff laws

“I’ve never seen anything like this before,” said Matthew Wasserbach, brokerage manager of Express Customs Clearance, to NBC. “It’s totally unprecedented.”

The package backlog is the result of the repeal of the long-standing “de minimis” tariff exemption for packages with values of $800 or less. These goods were previously allowed to enter the country customs duty and tax-free.

But since August 29, packages of all types and values have been subject to a range of tariffs and fees, increasing processing times and throwing international couriers into chaos.

When President Obama changed the de minimis exemption from $200 to $800 in 2016, the U.S. saw a major increase in low-value imports flooding into the country. The volume of de minimis shipments jumped from 140 million in 2014 to 1.36 billion in 2024.

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President Trump’s repeal of the exemption is part of his protectionist economic policy. He argues that these cheap imports put domestic businesses at a disadvantage. He has also said that crime rings have been using these shipments to smuggle drugs like fentanyl and counterfeit goods into the country.

According to the White House, “de minimis shipments accounted for 90% of all cargo seizures in FY 24. These shipments often broke the law with 98% of narcotics seized from cargo falling under the de minimis exemption, as well as 97% of counterfeit items seized.”

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Destroyed packages

UPS allows customers who are missing their packages to submit a claim within 60 days of the scheduled delivery date, provided they have their tracking number, and an invoice that can show the value of the package. However, this may not be relevant if the packages were destroyed.

In a statement to USA Today, UPS reported that more than 90% of imported packages are cleared on the first day of entry. [2]

However, that still leaves thousands of packages in a holding pattern, and incomplete information can lead to the package being destroyed.

"Because of changes to U.S. import regulations, we are seeing many packages that are unable to clear customs due to missing or incomplete information about the shipment required for customs clearance," the company said in its statement.

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UPS says while it may sometimes reach out to the recipient for information, generally the original shipper is responsible to provide what’s necessary. In the case of incomplete info, the UPS statement indicates the package is considered abandoned and “we dispose of it in compliance with U.S. customs regulations.”

UPS can also return the package to the shipper if they pay for the expense.

Customers who are shipping high-value goods or small businesses should consider paying for shipping insurance, which is something couriers like UPS offer.

What to know about the new tariff laws

UPS has a new fact sheet and international shipping guide with updates about the new tariff laws. While the company provides some key details to help customers understand import fees and tariffs, it is best to do your homework beforehand if you’re a small business owner, or a customer trying to receive goods internationally.

If you’re buying goods from outside the U.S., search the company website for information on tariffs and import fees you may be responsible for — before you hit the “add to cart” button. If you’re shopping from a small business, reach out to the seller directly to check if they know what to expect once your package reaches customs.

These tips are too late for those with packages already in the system, however.

“We know how to properly document and pay for our packages,” Lauren Purvis, a small business owner said to NBC News. “There should be zero reason that a properly documented and paid-for package would be set to be disposed of.”

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

NBC News (1); USA Today (2)

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Rebecca Holland Freelance Writer

Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.

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