India suspends all postal services to US amid new US customs rules

New Delhi: The Department of Posts (DoP) has suspended all postal services to the United States, including letters, documents, and gift items valued up to $100, citing a lack of carrier availability and unresolved regulatory mechanisms following a recent policy shift by the US government.

In an earlier notification, the DoP had allowed the booking of only letters, documents, and gifts under $100 in value while suspending all other categories. However, the latest order now includes those categories as well, effectively halting all outbound mail to the US.

“In view of the inability of carriers to transport US-bound mail and undefined regulatory mechanisms, the competent authority has decided to completely suspend all categories of mail to the USA, including letters/documents and gifts valued up to $100,” the Department said in a statement.

The suspension follows an Executive Order issued by the US administration on July 30, 2025, which revoked the duty-free de minimis exemption for goods valued up to $800, effective August 29. As a result, all international postal shipments to the US, regardless of their value, are now subject to customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework.

Items such as apparel, small carpets, gems and jewellery, wellness products, electronics, footwear, and handicrafts, frequently exported to the US through e-commerce or direct shipments are expected to be affected.

Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said the suspension will likely cause short-term disruptions, adding that e-commerce companies are reassessing their pricing models to determine how much of the added cost US consumers can absorb.

As per the US Executive Order, transport carriers or other “qualified parties” approved by US Customs and Border Protection (CBP) must now collect and remit duties on postal shipments. Although CBP issued some operational guidelines on August 15, many key processes such as defining “qualified parties” and setting up mechanisms for duty collection remain unresolved.

Consequently, air carriers informed Indian authorities that they could no longer accept US-bound consignments after August 25, citing a lack of operational and technical readiness to comply with the new US requirements.

The suspension will continue until further notice, pending clarification of compliance procedures and the readiness of logistics providers to resume services under the updated regulations.

With IANS inputs

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