UPS ‘Disposing of’ Packages Caught Up in Customs Rules

UPS customers across the country are facing major shipping delays and even lost or destroyed packages after sweeping new customs regulations took effect. The disruption began when President Trump’s administration ended the long-standing de minimis tariff exemption, which had previously allowed lower-value packages to enter the U.S. duty-free.

Under the new rules, even shipments valued under $800 are now subject to tariffs, additional paperwork, and complex customs inspections — creating a massive bottleneck at UPS processing hubs, according to NBC News.

The fallout has been severe. Thousands of customers report waiting weeks for deliveries ranging from luxury glassware and musical instruments to deeply personal items like engagement rings, diplomas, and family heirlooms. Some of these items, worth thousands of dollars, have reportedly been destroyed.

“This situation is totally unprecedented,” said Matthew Wasserbach of Express Customs Clearance. UPS acknowledged that while most packages clear customs quickly, a small but significant percentage get caught in administrative limbo. When senders can’t be reached or paperwork remains incomplete, UPS says it is sometimes forced to “dispose of” the goods — a term the company has not fully clarified.

Several customers have received notices indicating their packages were “destroyed in accordance with regulations.” UPS insists it makes multiple attempts to contact shippers before taking such action, but many complain that communication gets lost amid confusing tracking updates and conflicting messages.

According to Moneywise, if a package isn’t insured, the sender — not UPS — is typically responsible for refunds or replacements when goods are lost or damaged.

The controversy comes at a difficult time for the shipping giant, whose stock has already fallen about 30% this year. Analysts warn that continued frustration could push customers toward competitors such as FedEx, especially with the busy holiday shipping season fast approaching.

NBC also reports on one California man who was told by UPS that his one-of-a-kind guitar had been destroyed — only to later discover it was, in fact, still intact.

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