India suspends postal services to US from August 25 amid customs rule changes
The move follows a US order ending duty-free exemptions on goods up to USD 800, with India citing operational and customs uncertainties
The Department of Posts on Saturday (August 23) announced that all postal services to the United States will be temporarily suspended from August 25, owing to changes in US customs regulations set to take effect later this month.
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The move stems from Executive Order No. 14324, issued by the US administration on July 30, which withdraws the duty-free de minimis exemption on goods valued up to USD 800.
Tariff tensions in backdrop
The suspension of postal services comes against the backdrop of escalating trade tensions, with US President Donald Trump recently imposing a 25 per cent tariff on India, along with an additional 25 per cent penalty for purchasing Russian oil, effectively raising the total tariff burden to 50 per cent.
In a press statement, the Department of Posts said that with effect from August 29, “All international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act (IEEPA) tariff framework.” However, it added that gift items worth up to USD 100 will continue to remain exempt.
Operational hurdles for carriers
As per the Executive Order, transport carriers delivering shipments through the international postal network, or other "qualified parties" approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments.
According to the release, while CBP issued guidelines on August 15, several processes concerning the designation of “qualified parties” and mechanisms for duty collection remain “undefined.” Consequently, US-bound air carriers have informed Indian authorities that they will be unable to accept consignments after August 25 due to a lack of operational readiness.
Partial exemption and refunds
“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 press release said.
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The department added that customers who have already booked undeliverable items may seek a refund of postage. It also said it is “closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalize services at the earliest possible opportunity.”