Why the Suspension?
On 30 July 2025, the U.S. Administration issued Executive Order No. 14324, ending the long-standing de minimis exemption for goods valued up to USD 800. Under this rule, every postal parcel bound for the USA will now attract customs duties based on the International Emergency Economic Power Act (IEEPA) framework. Only gifts valued up to USD 100 will remain duty-free.
The U.S. Customs and Border Protection (CBP) also mandated that international postal carriers or “qualified parties” must collect and remit duties. However, with critical processes around qualified designations and duty collection still unclear, airlines have expressed their inability to accept U.S.-bound postal consignments.
What Services Are Affected?
From 25 August 2025, India Post will suspend booking of all types of postal articles—parcels, packets, and commercial consignments—destined for the USA. Only letters, documents, and gifts valued below USD 100 will continue to be accepted for dispatch. This partial suspension will remain until further clarifications are issued by U.S. authorities.
Impact on Customers
Customers who have already booked parcels that cannot be dispatched due to the new restrictions are eligible for refunds. India Post has assured that the process will be streamlined to minimize inconvenience. Officials emphasized that the department regrets the disruption and is actively working with stakeholders to restore normal operations as soon as possible.
Global Trade Implications
The suspension underscores growing friction in cross-border logistics triggered by shifting U.S. trade policies. For Indian exporters who rely on postal networks for small-value shipments—such as handicrafts, apparel, and e-commerce orders—the disruption may pose significant challenges. Industry experts warn that unless duty collection mechanisms are clarified, trade volumes could decline.
Government’s Response
The Department of Posts is monitoring the situation closely in consultation with U.S. Postal Service (USPS), CBP, and Indian carriers. Officials stated that every effort is being made to resolve operational bottlenecks and resume normal postal services at the earliest.
What Consumers Should Know
- Letters and documents to the USA remain unaffected.
- Gifts up to USD 100 are still exempt from duties and can be sent via India Post.
- All other parcels and consignments will not be accepted until further notice.
- Refunds are available for undeliverable bookings.
This suspension is a reminder for consumers and businesses to stay updated on customs changes before shipping goods abroad. With both governments working toward clarity, the services are expected to normalize, though no exact timeline has been provided.
