The Cayman Islands has joined more than 30 countries suspending parcel shipments to the United States as new US tariffs take effect. Nations including Mexico, Japan and Australia have announced similar suspensions.
On 26 Aug., the Universal Postal Union – the UN agency that coordinates global postal policy – confirmed that dozens of its member states had paused outbound goods to the US, citing uncertainty over how the new tariffs would affect transit and delivery networks once they come into force on Friday, 29 Aug.
The suspensions follow President Donald Trump’s Executive Order 14324, issued in July, which eliminated the longstanding ‘de minimis’ exemption that had allowed packages worth under US$800 to enter the US duty-free.
Postmaster General Sheena Glasgow said in a government press release that the sudden change forced the Cayman Islands Postal Service to act without warning.
“The CIPS, like most postal services worldwide, has been forced to suspend outbound US mail on short notice to citizens, or no notice at all,” she said, referring to the “the new tariff situation” as “highly fluid and frustrating”.
Deputy Postmaster General Melissa Martinez-Ebanks told the Compass that packages already in the possession of the Postal Service would not be affected.
“Our staff worked late to ensure that everything received up until closing yesterday was dispatched this morning and will arrive in the US before the midnight deadline,” she explained.
“We suspended acceptance of US-bound packages at noon on Wednesday specifically so that we could ensure that we are not holding any packages that will be subject to the tariffs.”
Martinez-Ebanks advised that the suspension would be temporary, allowing time to put compliance systems in place and said that postal service expects to resume sending documents on 1 Sept. and to begin accepting parcels with merchandise again on 8 Sept.
However, in its press release, the postal service stressed that “until further notice, the CIPS will not accept any mail items destined for the United States”, with dispatch only resuming once duty-collection systems are fully operational.
Martinez-Ebanks added that the changes apply only to US-bound mail and will not affect shipments to other destinations.
What is subject to tariffs under the new policy?
Under the new US rules, all parcels containing goods will be subject to import duties, regardless of value. For Cayman senders, this generally means a 10% duty or a flat fee of US$80 per package.
Items that were previously imported into Cayman and are being re-exported must also list their original country of manufacture. Packages with incomplete declarations or unpaid duties will be rejected on arrival in the US.
The only exemptions are for documents and certain gifts under US$100, but the US definition of a gift is limited to items already owned by the sender and given freely. Purchases – such as crafts from a market or Cayman-made food products – do not qualify and will still be taxed.
Martinez-Ebanks emphasised that duties are based on the country of origin, not where the package is mailed.
“Goods made in China, for example, will attract Chinese tariffs even if they are posted from Cayman,” she said.
Glasgow added that honesty in declarations is essential.
“Honesty is critical in abiding by the USA definition of ‘gift’ because it is not what we typically consider a gift,” stressed Glasgow.
“Similarly, misrepresenting the nature, value, or origin of goods when declaring will benefit no one; US Customs is expected to be extra vigilant in inspecting all incoming mail items now entering the US.”
New process for US shipments
Martinez-Ebanks said that customers mailing packages to the US will now have to pay tariffs upfront, a requirement under the new executive order. To do so, senders must file declarations through the Customs Declaration System using the Electronic Advanced Data (EAD) app and submit the declaration ID to [email protected]. The postal service will then calculate the duty and fees, notify the customer and release the package once payment is made.
In addition to completing the declaration online using the EAD app, senders must still bring their parcel open to the post office so staff can inspect it to verify the country of origin and to confirm that the items are permitted into the US.
Staff will be on hand at the General Post Office in George Town, and at Seven Mile Beach, Savannah, Cayman Brac and Little Cayman post offices to assist with declarations and duty calculations. Customers seeking guidance can also email [email protected].
What about receiving packages from the US?
“This tariff only applies to items going into the US,” stressed Martinez-Ebanks. “It does not affect goods coming out of the US or items genuinely transiting through the US. For example, you cannot ship something from China to your cousin in Fort Lauderdale and have them re-mail it duty-free. It will still be subject to US tariffs once it enters the country from China.”
Martinez-Ebanks urged customers to ship goods directly to Cayman rather than through US intermediaries and to provide accurate contact details, warning that under the new system returned parcels will also attract tariffs and cannot be sent back without duties being paid.
New policy ‘unforeseen’
Minister for District Administration and Home Affairs Nickolas DaCosta voiced concern over the impact on residents and businesses, calling the US policy change “sudden” and “unforeseen”, but assured the public that Cayman’s postal service is working swiftly to minimise disruption.
The postal service said it has signed a transportation agreement to continue dispatching document-only mail and is negotiating with third-party providers to manage duty collection for parcels. A local process to collect tariffs and service fees at the time of mailing is also being developed.
In order to put the new processes in place, postal counters will be closed between 29-30 Aug.
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Of course gifts of any value arriving in the Cayman Islands from anywhere will still attract customs duty and fees. And will need collection from the airport post office.
I remember being charged $3 to receive a BIRTHDAY CARD from the UK.
The sender had put the price she paid for the card, £5, on a customs form when she mailed it.
How about eliminating customs duties for items under, say, $100?
“…customers mailing packages to the US will now have to pay tariffs upfront…”
“Packages with incomplete declarations or unpaid duties will be rejected on arrival in the US.”
I am confused.
Why would the CIPS calculate and collect the US tariffs? Isn’t it the U.S. Customs who calculate and collect tariffs on private packages from foreign postal services, based on the item’s value, contents, and country of origin.
If the CIPS has decided to act as an agent (an intermediary) for the U.S. Customs, it will owe the collected tariffs to the US Government and must submit it to the US Government. Is mechanism of transferring tariffs to the US government in place? And who will be monitoring and auditing the CIPS to verify that a correct tariff was calculated then collected and properly accounted for transferring to the US?
So why would the CIPS assume a role of the US Customs agency? I don’t get it. The CIPS service is dismal as is, why would they assume additional duties when they are known for inefficient service?
Lastly, “New policy ‘unforeseen’”? Unforeseen describes an event that was genuinely impossible to predict. The recent implementation of new US tariffs is not an unforeseen event in the broader sense. The potential for new tariffs has been publicly discussed and implemented in stages since the beginning of 2025. They were publicly announced and expected. Tariff details were also known.
Read the 2024 Compass articles:
“Lost in the post: Compass investigation tracks long delays …”
“Postal Service working to lose sluggish reputation”