Trump Pauses Ban on T86 Clearance for Low-Value Packages

On February 7 (U.S. West Coast time), the Trump administration canceled the ban on tax-free package shipments under $800, which was signed on February 1. This means the T86 clearance policy is back in effect. The ban was originally enforced on February 4 but was quickly withdrawn after just three days. The main reason for this reversal was the chaos it caused in customs, postal services, logistics, and online retailers. USPS stopped accepting packages from China and Hong Kong on February 3. It resumed on February 4. This caused huge congestion at JFK Airport, with over a million packages stuck in customs. However, this is only a temporary suspension. The Trump administration said the tax-free rule will stay until a system is set up to collect tariffs. However, they did not provide a timeline. Sellers should prepare for future changes, as the policy may be reinstated anytime.