Thousands of U.S.-bound packages shipped via UPS (NYSE:UPS) are stuck in hubs nationwide, with the company stating it has begun “disposing of” some shipments due to a “nightmare” of new customs requirements imposed by the Trump administration.

The issue stems from the end of the long-standing “de minimis” tariff exemption on August 29. Previously, packages valued at $800 or less could enter the United States duty-free. Now, these shipments are subject to numerous tariffs and fees, creating a complex and costly process that has ensnared both private individuals and experienced exporters.

Frustrated customers have reported weeks of delays and confusing, often contradictory, tracking updates, according to NBC. Items in limbo range from commercial goods, such as a tea importer’s five shipments of matcha worth over $127,000, to items of deep sentimental value like journals, diplomas, and engagement rings. Customers have received notifications that their packages were “disposed of” or “destroyed,” only to later receive an update saying the shipment had cleared customs and was on its way. One Boston man told NBC he received multiple conflicting notices within days, with the final update stating his package from Japan was disposed of due to a customs delay.

In a statement, UPS attributed the problem to “missing or incomplete information” required by the new U.S. import regulations. The company said it contacts shippers three times to obtain necessary information. If unsuccessful, the package can either be returned at the shipper’s expense or disposed of in compliance with U.S. customs regulations. UPS did not clarify to NBC News what “disposed of” entails.

The situation presents a potential problem for the company, whose stock price has already fallen over 30% this year due to factors including tariffs and competition. Some shippers, like a glassware company owner in Stockholm, have decided to switch to competitors like FedEx (FDX). With the busy holiday shipping season approaching, customers worry that if the problems are not resolved, it could become an “even bigger issue.”

UPS telling some customers packages bound for the U.S. are being destroyed

Thousands of U.S.-bound packages shipped via UPS (UPS) are stuck in hubs nationwide, with the company stating it has begun ‘disposing of’ some shipments.

https://seekingalpha.com/news/4503450-ups-telling-some-customers-packages-bound-for-the-u-s-are-being-destroyed