UPU Terminal Dues Reform

The UPU Terminal Dues Reform was the September 2019 decision by the Universal Postal Union to let countries set their own rates for delivering inbound small packets, which kept the United States from leaving the organization.

2019 Geneva, Switzerland

What happened and why it matters

The 2019 reform ended much of the postal pricing advantage that let small parcels from China reach US doors for less than domestic postage. Under the old system, terminal dues paid to the delivering post were set by the UPU and were low for many exporting countries. The United States filed notice of withdrawal in October 2018, and at an extraordinary congress in Geneva in September 2019 members agreed to allow self-declared rates, which the US could begin applying in July 2020. The US then stayed in the UPU. For US sellers, cheap cross-border postal shipping became less of a price threat.

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