The Department of Posts on Saturday announced the temporary suspension of all postal services to the United States starting August 25, citing operational challenges arising from upcoming changes in US customs regulations.
The decision stems from Executive Order No. 14324, signed by the US administration on July 30, which withdraws the long-standing duty-free de minimis exemption on goods worth up to USD 800. The move is part of a broader tightening of trade and customs norms under the International Emergency Economic Power Act (IEEPA).
From August 29, every international postal item headed to the US — irrespective of value — will attract customs duties. An exception will be made only for gifts worth up to USD 100, the Department of Posts clarified in its statement.
Under the Executive Order, transport carriers handling shipments through the international postal system — along with other “qualified parties” designated by U.S. Customs and Border Protection (CBP) — must collect and remit customs duties. Although CBP issued preliminary guidelines on August 15, 2025, key aspects such as the identification of “qualified parties” and the process for duty collection and remittance remain unclear. As a result, U.S.-bound air carriers have informed Indian authorities that they cannot accept consignments after August 25, 2025, citing insufficient operational and technical preparedness.
The announcement comes amid heightened trade frictions. US President Donald Trump recently imposed a 25 per cent tariff on Indian goods, coupled with an additional 25 per cent penalty for India’s continued purchase of Russian oil, effectively doubling the tariff impact to 50 per cent.
Adding to the uncertainty, US Customs and Border Protection (CBP) has tasked international postal carriers and other “qualified parties” with collecting and remitting duties on shipments. However, key procedural aspects — including who qualifies and how duties are to be collected — remain undefined, according to guidelines issued on August 15.
In the absence of clarity, air carriers responsible for transporting US-bound consignments have notified Indian authorities that they cannot accept packages after August 25. This directly prompted India Post’s suspension of bookings.
“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 stated.
The department added that customers who have already dispatched undeliverable items may claim postage refunds. It is assured that the situation is being “closely monitored” in consultation with stakeholders, and efforts are underway to restore normal services at the earliest possible opportunity.
