The Department of Posts on Saturday declared that it will temporarily stop all postal services to the United States starting August 25. The move comes in response to new US customs regulations that will take effect later this month.
Background of the Decision
The change follows Executive Order No. 14324, issued by the US administration on July 30. The order removes the duty-free de minimis exemption for goods valued up to USD 800, which earlier allowed small shipments to enter the country without customs duties.
Rising Trade Tensions
The suspension of services comes at a time when trade tensions between the two countries are increasing. Recently, US President Donald Trump imposed a 25 per cent tariff on Indian goods. He also added an extra 25 per cent penalty on India for purchasing Russian oil, raising the overall tariff to 50 per cent.
New Duty Structure from August 29
According to the Department of Posts, from August 29, every international postal item sent to the United States, regardless of its value, will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework.
However, gift items valued up to USD 100 will remain duty-free.
Also Read: India Pauses Major US Defence Deals Amid Rising Trade Tensions and Tariffs
Role of Transport Carriers
The order also makes transport carriers and “qualified parties” approved by US Customs and Border Protection (CBP) responsible for collecting and remitting duties on shipments. While CBP issued guidelines on August 15, many processes—such as identifying qualified parties and duty collection mechanisms are still unclear.
India has temporarily suspended postal services to the US from August 25 after new American customs rules removed duty-free exemptions on shipments.
Airlines Unable to Accept Shipments
Due to this lack of clarity, US-bound air carriers informed Indian authorities that they cannot accept consignments after August 25, citing operational difficulties.
The Department of Posts said, “In view of the above, the Department of Posts has decided to temporarily suspend booking of all types of postal articles destined for the USA with effect from 25th August, 2025, except letters/documents and gift items up to USD 100 in value.”
The department also added that customers who already booked undeliverable items can claim a refund of postage. It further assured that it is monitoring the situation in coordination with all stakeholders and will work to resume services as soon as possible.
