Indian postal services to US temporarily halted amid new US customs rules

New Delhi: The Department of Posts has announced a temporary suspension of all postal services to the United States starting 25 August, citing operational difficulties linked to newly introduced US customs regulations.


The decision comes after the US administration issued Executive Order No. 14324 on 30 July, which removes the long-standing duty-free de minimis exemption for imported goods valued up to USD 800.


Under the new rules, set to take effect on 29 August, all international parcels sent to the US will now be subject to customs duties under the International Emergency Economic Powers Act (IEEPA).


According to an official statement from the Ministry of Communications, only letters, documents, and gift items valued at up to USD 100 will remain exempt from these duties for the time being, TNIE reported.


The Department of Posts stated that while the US Customs and Border Protection (CBP) issued preliminary guidelines on 15 August, several key aspects of the new customs framework remain unclear, including the designation of “qualified parties” responsible for collecting and remitting duties.


Due to these unresolved issues, US-bound air carriers have reportedly informed Indian authorities that they will be unable to accept postal consignments after 25 August, citing operational and technical unpreparedness, according to the department’s press release.


The suspension of services comes at a time of rising trade tensions between India and the US. Recently, President Donald Trump announced a 25% tariff on Indian goods, along with an additional 25% penalty linked to India’s purchases of Russian oil, effectively raising total tariffs on certain imports to 50%.


These changes have raised concerns among India’s trade and logistics sectors, as small-scale exporters and individuals relying on international postal services are expected to be significantly affected.


The Department of Posts clarified that customers who have already booked shipments to the US that fall outside the permitted categories can apply for a full refund of postage fees. It also assured users that the situation is being monitored closely in coordination with US authorities and logistics partners.


For now, only letters, documents, and gift items valued up to USD 100 will be accepted for dispatch to the US. All other categories, including commercial packages, e-commerce consignments, and parcels exceeding the exemption limit, will be blocked from booking starting 25 August.


Officials described the suspension as a rare disruption in postal services to one of India’s key international partners, reflecting the uncertainty caused by evolving US trade and customs policies. The duration of the halt remains uncertain and will depend on further clarification from US authorities and the preparedness of air carriers to comply with the new framework.

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