USPS Opts For Phased Rollout Of New Dimension Rule, Delaying Non-Compliance Fee To 2027
After receiving public comments on proposed Parcel Dimension Compliance rule change, USPS is taking a more cautious approach to enforcement, delaying non-compliance fee expansion until 2027 as they work with business partners to implement new policy.
Previously, the dimension requirement and non-compliance fee only applied to packages exceeding 1 cubic foot or 22 inches in length, but the new rule will expand that to all manifested commercial USPS parcels, regardless of size.
Liz Morton
However, a notice placed on the Federal Register today indicates USPS received enough pushback from public comments to convince them to take a phased approach to the change, starting with an evaluation and review period and delaying the punitive non-compliance fee until 2027.
Phase One will stay go into effect on July 12, 2026, requiring accurate length, width, and height on all commercial manifested parcels shipped via Parcel Select, USPS Ground Advantage, Priority Mail, and Priority Mail Express - though Flat Rate packaging and USPS Returns remain exempt.
This phase will allow USPS to evaluate and review systems for accuracy, during which time the Dimension Noncompliance Fee, currently set at $3.00 per package, will be deferred for smaller shipments but continue to apply for parcels that exceed 1 cubic foot or 22 inches in length if dimensions are not provided or are inaccurate.
In phase one, effective July 12. 2026, the Postal Service will move forward with the implementation of requiring accurate dimensions be reported in the manifest for all parcels.
During phase one, the Postal Service will evaluate data, review customer activity, identify thresholds, and implement and test trusted systems accuracy.
Assessing the Dimension Noncompliance fee for omitting the dimensions or for inaccurately reported dimensions in the manifest will be deferred until the implementation of phase two.
However, in the interim, the Postal Service will continue to charge the Dimension Noncompliance fee for parcels that exceed 1 cubic foot or 22 inches in length if the parcel's dimensions are omitted or inaccurate in the manifest until implementation of the “Parcel Dimension Compliance” initiative phase two.
Applying the Noncompliance Fee to smaller packages will instead be delayed until Phase Tw0, which is tentatively planned for early 2027.
In phase two, tentatively scheduled for early 2027, the Postal Service will implement an automated approach to detect dimensions are included and that they are accurate in the manifest.
This schedule is tentative and subject to change. At this time, the Postal Service will begin to assess the Dimension Noncompliance fee for omitting the dimensions or for inaccurately reported dimensions in the manifest.
As the Postal Service moves forward in the development of this phase, we will establish the protocols that will be communicated to our business partners in response to the following:
- Dispute standards and recourse.
- Published specifications including tolerances and rounding rules.
- Will the equipment used to measure shipments be certified as legal for trade and conform to current county/state/municipality-level weights and measures rules.
- Will there be an exception process, and if so, how will the Postal Service communicate information regarding exceptions?
- How will the Postal Service resolve instances in which there are different dimensions of the same package from different pieces of equipment?
- Will soft packaging and “Cubic Soft Packs” be exempt from sampling and the assessment of a fee.
The establishment of phase two will require the Postal Service to work closely with our business partners to implement standards that are mutually beneficial. This includes providing our business partners with adequate lead time to ensure a smooth transition into the implementation of phase two of this initiative.
As a reminder, if you purchase USPS label through eBay, Etsy, Amazon, Poshmark etc. or third-party solutions like ShipStation, Pirate Ship, or PayPal Shipping, your packages are riding on those platforms’ manifests as commercial parcels with the weight and dimension data electronically transmitted to USPS by the platform - so this new rule will apply to those shipments.
The delay in enforcing the Noncompliance Fee may signal that USPS is sensitive to the potential for blowback from the impact the additional fees may have on business shippers.
The Postal Service also just announced a proposal to add an 8% "time limited rate increase" to cover rising fuel and transportation costs which, if approved, will go also go into effect July 12 - making it likely USPS believed expanding application of the Dimension Noncompliance Fee on top of that increase would be a bridge too far.
Liz Morton
The final rule notice says some of the public comments USPS received explicitly raised concerns that the change will drive customers using Ground Advantage to switch to competitors like UPS and FedEx.
In response, the Postal Service said it is "mindful of the concerns in these comments and plans to address these very exact concerns and balance them with our need for accuracy and efficiency during phase two of this initiative."
How will these USPS changes affect your online business? Let us know in the comments below!
