Virgin Islanders were still trying to make sense of new package delivery processes Thursday that has caused widespread and vexing delays over what often amounts to pocket change. Delicate prom dresses, clunky auto parts, vital medicines, high-tech gadgets — everything shipped by expedited services like DHL, FedEx, and UPS has been backlogged as the territory works out a way to deal with changes in federal rules gumming up the previously fluid system.
Sen. Angel Bolques laid the blame Thursday squarely on President Donald Trump’s tariffs on international imports and his removal of the de minimus rule that exempted packages worth less than $800.
“This is not just a shipping issue — it’s a disruption that is affecting the daily lives and livelihoods of our people and the businesses they rely on,” Bolques, who represents St. John, said in a written statement. “Vital medical supplies are spoiling, small businesses are at risk of financial loss, and the residents of St. John are left in the dark.”
Previously, St. Johnians could clear cargo shipments through the local Customs Office, Bolques said. New procedures, enacted without advance public notice, require all customs clearance and payment be processed at the Customs and Border Protection Office on St. Thomas.
“This change imposes additional burdens on St. John residents, many of whom must now incur transportation costs, take time off work, or arrange for third-party couriers to retrieve vital goods and supplies,” he said.
Jen Robinson, owner of the Coral Bay mail service Connections East, said a steady stream of steamed customers have reported recent woes, traversing to St. Thomas and back, navigating unfamiliar forms and regulations all for the sake of a few dollars in tax.
One of those customers was satellite-link equipment installer Sloop Jones.
“I needed a $45 part from Starlink. Starlink only ships DHL. So the excise tax on that $45 part is 6 percent. So we’re talking about under $3 roughly,” Jones said. “I live on St. John and it’s a four hour round-trip for me to go over to Crown Bay and deal with all of that — for $3.”
A Customs employee told Jones DHL, FedEx, and UPS were “all backed up.”
Anything that comes from overseas to the United States is subject to duties, be that the new tariffs or old. Because the U.S. Virgin Islands is outside the U.S. customs zone, the territory can charge an excise tax on items meant for commercial use. A door knob for your home would not be taxed unless you rented your home out.
Before recent federal changes, U.S. Customs often allowed expedited carriers to file excise paperwork after delivery, Bureau of Internal Revenue Director Joel Lee speculated last week. Now, all that paperwork needs to be completed up front. Lee insisted there had been no change in policy or procedure at BIR. The bureau has had an online portal for excise tax declarations open for years.
The frustration for people importing noncommercial items, like a prom dress, has arisen as they are asked to fill out forms officially declaring their packages are strictly personal.
Robinson said the most common concern she hears is from people whose tracking information falsely shows a package as delivered or out for delivery, when in fact the parcel is in a pile at the airport or a nearby office.
Bolques suggested reaching out to Congressional Delegate Stacey Plaskett, the local Licensing and Consumer Affairs Department, and private couriers like DHL, FedEx, and UPS.
After two weeks of back and forth with a public relations firm representing FedEx, the company released a statement. It did not offer a solution: “FedEx is currently experiencing service delays in the U.S. Virgin Islands due to the completion of Excise Tax and Customs Clearance procedures. We understand the impact this may have on our customers’ shipments and are actively working to minimize disruptions.”
Corporate offices for DHL acknowledged receiving questions from the Source but did not provide answers about service delays. The corporate offices of UPS did not respond at all.
U.S. Customs and Border Protection said they were simply enforcing the rules.
