$800 US Duty-Free Gone: Royal Mail 2025 Rules Explained
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If you’re a UK business or individual sending parcels to the United States, new Royal Mail rules from August 2025 will impact your shipping costs, customs compliance, and delivery times. The US has removed its $800 duty-free threshold, so nearly every parcel is now subject to import duties and taxes.
Here’s your guide to staying compliant, managing costs, and keeping your shipments moving.
Key Changes for UK to US Shipping
No more $800 exemption: All goods shipped to the US, except gifts under $100 and letters/cards, now face US import duties and taxes.
Royal Mail’s Postal Delivery Duties Paid (PDDP) service: Royal Mail calculates and pays duties to US Customs, then invoices you for the amount plus a 50p handling fee per parcel.
Accurate customs data required: Product descriptions, declared values, and country-of-origin details must be correct to avoid delays.
Postage rates unchanged: but expect extra customs clearance costs.
How to Ship to the US with Royal Mail in 2025?
Use Royal Mail’s PDDP service for US-bound parcels
Provide clear product value and country-of-origin information
Budget for tariffs (10% for UK-made goods, 15% for EU-made, etc) and the new handling fee
For gifts under $100 and letters/cards, duties do not apply.
How Does This Impact UK eCommerce and Retailers?
Higher shipping costs
The issue: Expect tariffs and fees on most US parcels, adding to operational expenses and squeezing margins.
How Helm helps: Helm’s smart courier rules ensure you’re always using the most cost-effective Royal Mail service based on weight, value, and destination. For 3PLs, Helm’s auto-billing automatically reconciles Royal Mail’s handling fees and duties into client invoices, saving time and reducing errors.
Managing tariffs with DDP: Helm also allows you to configure Royal Mail shipments as Delivery Duty Paid (DDP). This means tariffs are prepaid and built into your workflow, making costs predictable and avoiding disputes with US customers. With that, you can budget accurately for tariffs instead of leaving shipments as a surprise at the border.
Configuring Royal Mail shipments as DDP:
Go to Settings -> Courier Integrations -> Royal Mail Click and Drop.
Under Add Preset service, add a DDP service as a preset. In this case, it’s International Business Parcel Tracked DDP (MRP).
Then, go to your Service list to check the configuration for the DDP service. In the configuration page, under the field, ‘Is DDP’, type in ‘true’.
Which means, this shipment, when being booked, will be shipped on a DDP service.
Setting up this configuration ensures:
Faster customs clearance
No surprise charges at delivery
Full automation (Helm applies DDP to all US orders using shipping rules, removing the need for manual intervention, like stated above)
Potential delivery delays
The issue: Incomplete or inaccurate customs information can mean returns or hold-ups at the border.
How Helm helps: Helm automatically generates accurate customs documentation (commercial invoices, packing lists, airway bills) from SKU-level data, including HS Codes and country of origin. This eliminates manual errors and speeds up clearance.
Critical compliance
The issue: Stricter Royal Mail and US Customs requirements mean businesses must get data right the first time or risk fines, delays, or lost customers.
How Helm helps: Helm builds compliance into your Royal Mail workflows. From batch control to Incoterms assignment and certificate uploads, every parcel is automatically compliant, with no extra admin burden.
More admin for retailers
The issue: Businesses must budget for duties, reconcile new Royal Mail fees, and review their workflows.
How Helm helps: Helm reduces admin by syncing stock and order data across sales channels in real time, so inventory stays accurate, and overselling is avoided. It also captures Royal Mail’s invoiced duties and fees into client billing automatically, making reconciliation simple.
Customer frustration
The issue: Higher costs and possible delays can lead to confusion and more “Where is my order?” queries from US customers.
How Helm helps: Helm provides custom-branded, proactive tracking notifications via SMS and email, pulling updates directly from Royal Mail’s Tracking API. Customers see real-time delivery progress under your brand, reducing support tickets.
Helm’s branded returns portals also support cross-border returns where carriers like Royal Mail provide the service, keeping the experience seamless and transparent.
Tips for UK to US Shippers
Review your shipping workflows and customs data
Update your eCommerce platforms and shipping integrations
Communicate changes and possible delivery delays to US customers
Stay informed via Royal Mail’s USA business updates page
Frequently Asked Questions
Royal Mail US Shipping Changes
Q: Are personal letters and cards affected?
A: No, these remain duty-free and don’t require a customs declaration.
Q: Are gifts still exempt?
A: Gifts under $100 are not subject to US import duties.
Q: How are tariffs calculated?
A: Based on item value and country of origin (e.g. 10% for UK-made goods).
Q: Will I see extra fees?
A: Yes, a 50p handling fee per parcel, plus the calculated customs duties.
Q: What happens if I get it wrong?
A: Incomplete or inaccurate customs info can mean delays, returns, or extra charges.
Helm & Royal Mail Integration
Q: Can Helm automatically generate Royal Mail customs paperwork?
A: Yes. Helm generates commercial invoices, packing lists, and air waybills from product data, ensuring accuracy and compliance every time.
Q: Does Helm support Royal Mail’s PDDP and DDP services?
A: Absolutely. Helm integrates directly with Royal Mail Click & Drop, allowing businesses to enable DDP services so duties are prepaid, reducing customer delays and complaints.
Q: Will Helm keep my sales channels in sync during these changes?
A: Yes. Helm syncs inventory and order data across Shopify, Amazon, eBay, and more, so overselling or misallocations don’t happen even when customs rules complicate delivery.
Q: Can Helm help my 3PL manage Royal Mail fees for multiple clients?
A: Yes. With Client Hubs and auto-billing, Helm separates fees, duties, and rules per client, while keeping operations centralised and scalable.
Bottom Line
Royal Mail’s new US shipping rules mean higher costs and stricter compliance for UK senders.
But with Helm:
Costs are controlled with smart Royal Mail service selection
Customs delays are avoided with accurate documentation and DDP setup
Compliance is automatic and built into every workflow
Admin is reduced through automation and billing integration
Customers are kept happy with Helm’s custom-branded tracking (using Royal Mail’s API) and returns portals, including cross-border where supported
Get your customs data right, budget for new fees, and keep your US customers informed to avoid disruption.