Postal Service temporarily suspends U.S. Mail following new Tariff

The Cayman Islands Postal Service (CIPS), under the Ministry of District Administration and Home Affairs (MDAHA), has announced the immediate suspension of all outbound mail items destined for the United States. The decision follows information received on 21 August 2025 from U.S. authorities confirming that the Executive Order 14324 issued by President Donald J. Trump - suspending the USD$800 duty-free de minimis threshold - will apply to all mail arriving in the U.S. from Friday, 29 August onwards.

This means that any item not physically in the United States by midnight on Thursday, 28 August will not be delivered to its final destination, regardless of its posting date. As such, the acceptance of all U.S.-bound mail from the Cayman Islands was suspended on Wednesday, 27 August across all islands. Postal operations for all other countries remain unaffected and continue as normal.

Postmaster General Sheena Glasgow stated, “The CIPS, like most postal services worldwide, has been forced to suspend outbound U.S. mail on short notice to citizens, or no notice at all. There are many questions regarding postal industry processes and the logistics, required to comply with Executive Order 14324. The situation is highly fluid, as we seek clarity on the questions put to various entities now involved in the new tariff situation.”

Under the new U.S. import laws, all postal items entering the United States that contain goods will now be subject to import duties, regardless of their value. Goods being sent to the U.S., originating from the Cayman Islands, will likely attract a 10% import duty or a flat fee of USD$80 per item. Items previously imported into the Cayman Islands and subsequently re-exported must clearly state their original country of origin. Items without proper declaration or unpaid duties at the time of posting will be refused entry into the U.S. and cannot be dispatched.

Items containing only documents, or gifts valued under USD$100, are exempt from duties only if they meet the U.S. Government’s strict criteria for a bona fide gift - defined as an article previously owned by the sender, given freely and not acquired through any transaction. For example, if a resident purchases a handcrafted item at a local market or local delicacies to send to a relative abroad as a birthday gift, it does not qualify for exemption and will be subject to U.S. import duty.

Ms. Glasgow continued, “The CIPS stands ready to provide updated guidance as we receive information, and our team is committed to supporting customers through this sudden transition. The public’s patience is being sought over the next few weeks as our postal operations resume under the new tariff system for goods being posted to the USA. Honesty is critical in abiding by the USA definition of “gift” because it is not what we typically consider a gift. Similarly, misrepresenting the nature, value, or origin of goods when declaring will benefit no one; US Customs is expected to be extra vigilant in inspecting all incoming mail items now entering the U.S.”.

The Cayman Islands Postal Service received initial guidance on implementation from the Universal Postal Union (UPU) this week. As part of ongoing preparations, all postal counters will be closed on Friday, 29 August, and Saturday, 30 August, 2025, to implement the required systems and staff training. Regular hours will resume on Monday, 1 September.

Acting Chief Officer, Michael Ebanks, underscored the limited role that local postal authorities have in this matter: “This Executive Order is an action of the U.S. administration, and unfortunately, the Cayman Islands Postal Service had no prior input or control over it. Like many other jurisdictions, we were only recently informed of the change. Our teams are now working with urgency to comply and ensure continuity of service, while limiting disruption for the public.”

The Postal Service has signed a transportation agreement to allow for the continued dispatch of document-only mail, but will need to implement safeguards to prevent any merchandise from being included. As such, CIPS is actively working towards resuming the posting of documents as soon as new screening protocols are in place.

To enable full compliance with the new U.S. requirements, CIPS is negotiating with qualified third-party providers to manage the collection and remittance of import duties on behalf of Cayman Islands dispatchers. Final implementation is pending compliance with the company’s engagement requirements. Additionally, CIPS is working to introduce a local process to collect duties and service fees from customers at the time of mailing.

The Hon. Nickolas DaCosta, Minister for District Administration and Home Affairs, expressed concern over the nature and timing of the change: “Many in our community rely on affordable, timely postal services to stay connected with family, conduct business, and send personal items abroad. The sudden implementation of this U.S. policy has created real and unforeseen challenges, both for international postal systems and, more importantly, for Caymanians and residents. While these decisions rest with the U.S. Government, our focus is on responding swiftly and effectively here at home. I want to assure the public that the Cayman Islands Postal Service is working with urgency to minimise disruption, and I commend the Postmaster General and her team for their professionalism in managing this transition. As Minister, I am committed to supporting their efforts and ensuring that our people have clear guidance and continuity of service in the weeks ahead.”

The Ministry and the Cayman Islands Postal Service will continue to monitor the situation closely and provide timely updates as additional guidance is received. Until further notice, the CIPS will not accept any mail items destined for the United States. Dispatch and acceptance will resume only once systems are in place to collect applicable tariffs and comply with U.S. regulations.