UPU urges coordination on supply chain regulation

The Director General of the Universal Postal Union has warned that rapid, uncoordinated changes to customs rules around the world threaten the sustainability of the universal postal service and risk excluding small businesses and vulnerable populations from the benefits of cross-border e-commerce.

Opening the plenary session of the UPU Council of Administration, Director General Masahiko Metoki called on the organization's 192 member countries to proactively coordinate on supply chain regulation, ensuring that postal networks are ready before new requirements take effect.

“If we do not respond collectively and decisively, the impact on international postal exchanges could be profound and, in some cases, irreversible”, said the Director General.

What’s at stake

According to the UPU, uncoordinated, country-specific measures impose heavier operational burdens and higher compliance costs, as operators and their partners must provide new information, collect and remit advance payments for a larger volume of items, rapidly implement new IT systems and procedures, and assume new liabilities. Costs can be prohibitive, and operators may struggle to prepare in time, especially in the developing and least developed countries. Carriers may also refuse to accept the increasing liabilities they face. The result could be higher costs for customers, declining quality of service, or the closure of postal corridors altogether.

Those repercussions are ultimately borne by vulnerable groups, including micro, small and medium-sized enterprises (MSMEs), which rely on the postal channel because it is accessible, predictable and affordable. While shifting to cargo channels could be more financially attractive for large platforms, this option may remain out of reach for MSMEs shipping small volumes – particularly those operating in rural or remote areas.

The UPU has acted swiftly in response to imminent changes. It has facilitated dialogue between member countries on outstanding questions regarding new regulations, rapidly adapted its messaging standards to accommodate new data requirements, and delivered a global delivered duty paid solution tailored to country-specific customs requirements.

With a growing number of countries signalling that they intend to introduce similar regulation, a reactive approach is no longer sustainable. The Director General acknowledged countries' sovereign right to facilitate legitimate trade and strengthen supply chain security, but called for greater advance coordination to ensure the whole network is ready before new rules take effect.

Initial impacts

Two recent policy shifts show how quickly a single change can ripple across the global postal network.

In August 2025, the United States eliminated its de minimis exemption and began applying origin-specific duties to goods arriving in the mail stream. Volumes fell 70% in the month the change took effect, and more than 40 countries stopped sending goods to the US within weeks. One year on, 30 of those corridors have reopened.

In July 2026, the European Union began applying a standard duty of 3 EUR per item on inbound goods. Aggregate tonnage fell 31% that month.

Further changes are imminent. From 1 November, the EU will require additional product identifiers. In the US, Customs and Border Protection (CBP) had set a 22 October deadline for sharing more detailed data on the contents and origin of goods with partner government agencies; however, in mid-October, CBP extended that deadline by 90 days to ensure that partners are ready.