UPS Halts Refund Guarantee for International Parcels to U.S.

UPS has paused its Service Guarantee—the money-back refund for late deliveries—for all U.S.-bound international parcels, effective October 2. The move follows the U.S. government's termination of the de minimis exemption, which historically allowed low-value imports to enter the country without duties and taxes. With de minimis gone, UPS says customs procedures have grown more complex, increasing the risk of clearance delays that can push deliveries past their committed windows.

What Changed—and Why It Matters

For years, the U.S. de minimis policy let shipments valued at up to $800 clear without paying duties and import taxes. That framework ended on August 29, 2025, triggering a shift from simplified entry to formal customs processing for many parcels. According to UPS, the resulting uptick in documentation, data validation, and agency checks has materially increased variability in transit times—especially during peak season.

Services Affected

UPS notes that multiple international express products are impacted, including UPS Worldwide Express and UPS Worldwide Saver. While transportation continues, the UPS Service Guarantee (late-delivery refund) is suspended for parcels destined for the United States until further notice.

Where Delays Are Most Likely

UPS has warned shippers—particularly those shipping from Canada—that the end of de minimis has driven a surge in formal entries, which lengthens processing times and contributes to delivery variability. Shipments requiring additional oversight from U.S. government agencies—such as the FDA for regulated goods—are especially susceptible to longer holds and inspections.

Industry Response and Supply Chain Re-Design

The end of de minimis is reshaping cross-border e-commerce logistics. Brands that relied on the old threshold are reassessing network design, fulfillment origins, and duty-paid strategies. Some postal operators briefly paused U.S. services after the policy shift and have since resumed with adjusted procedures. In the private-carrier space, UPS’s suspension of the Service Guarantee is widely viewed as a pragmatic, temporary response to a fast-changing trade environment.

Not the First Time

This is not unprecedented for UPS. During prior supply chain disruptions—including the pandemic—the company suspended refund guarantees on certain services (for example, parts of its air products) to align service commitments with operational realities. More recently, ongoing interruptions in the Canadian postal system prompted UPS to pause refund guarantees for domestic Canadian and inbound Canada parcels, underscoring how upstream factors can ripple into last-mile performance.

What Shippers Should Do Now

To navigate the near-term volatility around U.S.-bound international parcels, shippers should:

1. Pre-clear data: Submit accurate, complete commercial invoices and product data (including HS codes, values, COO) before pickup.
2. Plan for agency holds: If your product category touches FDA or other PGA oversight, budget extra lead time for reviews.
3. Shift to DDP where feasible: Consider Delivered Duty Paid models to reduce consignee friction and avoid delivery failures related to unpaid duties/taxes.
4. Segment inventory: Place fast movers in U.S. or near-shore facilities to blunt peak-season variability.
5. Set customer expectations: Update transit-time guidance and alerts until the Service Guarantee is restored.

Building Resilience Beyond the De Minimis Era

UPS's suspension of the Service Guarantee highlights a larger truth: compliance and data quality are now core to delivery speed. As the U.S. retirement of de minimis pushes more parcels into formal entry, shippers that invest in better product classification, pre-clearance workflows, and diversified routing will outperform peers on reliability and cost. For brands re-mapping their cross-border strategy—especially heading into peak season—partnering with an experienced forwarder can compress the learning curve. Forest Shipping supports DDP solutions, multi-channel customs compliance, and origin-to-destination planning for U.S.-bound international parcels, helping sellers stabilize transit times and protect customer experience while the market recalibrates.