UPS Admits Discarding Thousands of Packages

Massive Customs Backlog Leads to Package Destruction

UPS has confirmed that it is “disposing” of thousands of U.S.-bound shipments caught in customs limbo due to sweeping import changes enacted under the Trump administration, NBC News reported. The new rules have created widespread confusion, leaving millions of packages stalled in warehouses across the country.

“I’ve never seen anything like this before. It’s totally unprecedented,” said Matthew Wasserbach, brokerage manager at Express Customs Clearance. His firm, based in New York, has seen a surge in clients struggling to navigate the new import maze. Daphne Fecheyr / Unsplash

High-Value Imports and Emotional Losses

For some customers, the losses are financial as well as emotional. Oregon tea importer Lauren Purvis said five shipments of matcha worth over $127,000 vanished after arriving at UPS’s Kentucky processing hub, according to NBC News. “There should be zero reason that a properly documented and paid-for package would be set to be disposed of,” she said. Phuong Nguyen / Unsplash

Tariff Overhaul Creates 'Customs Conundrum'

The crisis began after the Trump administration ended the long-standing “de minimis” tariff exemption on August 29. The rule previously allowed items valued under $800 to enter the U.S. duty-free. Now, even low-value packages face tariffs and country-specific fees — part of Trump’s “reciprocal tariff” policy.

The new system, laden with hundreds of product categories and origin-based rates, has overwhelmed both shippers and customs agents. Though UPS says it clears over 90 percent of packages within a day, the remaining 10 percent may translate to thousands of parcels stranded — or destroyed — daily. Igor Omilaev / Unsplash

UPS Defends Policy, Declines to Clarify Disposal Process

In a statement to NBC News, UPS said the new import rules have created “many packages that are unable to clear customs due to missing or incomplete information.” The company said it contacts senders three times before taking action, offering to return or dispose of unclaimed items “in compliance with U.S. customs regulations.”

However, UPS declined to specify what “disposing of” entails when asked by NBC. Salvador Rios / Unsplash

Mounting Pressure on UPS

The ongoing crisis comes as UPS faces a 30 percent drop in stock value this year, attributed to tariffs, increased competition, and changing consumer habits. Analysts warn the customs backlog could push more customers to rival couriers if the issue persists through the busy holiday season.

“I can’t even imagine how bad the holidays are going to be,” Freberg said. “If it doesn’t get solved soon, I can only see it becoming an even bigger issue.” Marques Thomas / Unsplash