The duty-free policy for 'small parcels' valued at $800 (about 1,116,000 won) being imported into the United States will be abolished.
Accordingly, starting from the 29th (local time), products imported into the U.S. through the international postal network will be subject to a value-added tax proportional to the parcel value according to the effective tariff rate applicable in the country of origin, or a flat tax ranging from $80 to $200 per item.
For a period of six months, parcel delivery service providers may choose to apply the flat tax instead of the value-added tax; however, thereafter, all will be unified under the value-added tax.
However, U.S. travelers can bring in personal items worth up to $200 duty-free. In addition, the existing exemption clause for 'bona fide' gifts remains in effect for items worth up to $100. A bona fide gift refers to a personal gift for which no expense has been charged or is intended to be charged.
In July, Donald Trump, the U.S. president, signed an executive order stating, "Goods imported for less than $800 that do not use the international postal network are no longer exempt from duties."
The Trump administration has determined that the duty exemption system for small parcels has become a 'loophole' allowing foreign companies to evade U.S. tariffs and has gradually expanded related measures, believing that it is being used for transactions involving drugs and smuggled goods.