India Pauses Postal Services to US Over New Duty Confusion

India Pauses Postal Services to US Over New Duty Confusion

New Delhi, August 2025 – India has announced a temporary suspension of most postal services to the United States starting 25 August 2025, citing confusion over recently introduced U.S. customs regulations that ended the long-standing duty-free privilege on low-value shipments.

The move comes in response to Executive Order No. 14324, issued by the U.S. administration on 30 July 2025, which dismantles the “de minimis” exemption that allowed goods valued up to USD 800 to enter the U.S. duty-free. This exemption will be fully revoked starting 29 August 2025, meaning all international postal items—regardless of their value—will be subject to customs duties under the International Emergency Economic Powers Act (IEEPA) framework.

Despite initial guidelines issued by U.S. Customs and Border Protection (CBP) on 15 August, key details remain vague—especially around how duties will be collected, and which parties are authorized to do so. With these gaps yet to be filled, major air carriers have informed Indian authorities that they cannot accept shipments destined for the U.S. beyond 25 August ThePrintThe New Indian ExpressThe Washington PostThe Times of India.

Under this suspension, only letters, documents, and gifts worth up to USD 100 will continue to be accepted for dispatch to the U.S. All other postal items have been suspended until procedures are clarified.

The Department of Posts, under India’s Ministry of Communications, expressed regret for the inconvenience caused to customers. The department has assured that refunds are available for undeliverable parcels, and reiterated its coordination with stakeholders—including CBP, the United States Postal Service (USPS), and air carriers—to resume full service as soon as feasible The Indian ExpressThe Times of IndiaDD News.

What’s Behind the Disruption?

The sudden halt stems from the U.S.’s shift away from the “de minimis” threshold, an exemption that for years allowed low-value parcels—in many cases from small e-commerce vendors and individuals—to bypass customs duties. Ending this exemption is part of a broader effort by the U.S. administration to tighten border controls and reduce illicit imports, including substances like fentanyl that were sometimes smuggled in inexpensive packages.

The U.S.’s executive order not only revokes the exemption but also places the onus on transport carriers or designated “qualified parties” to collect and remit the duties. However, since the U.S. has not yet defined who qualifies or how exactly the duty collection mechanism should work, there’s widespread operational uncertainty The Indian ExpressThe Economic TimesThe New Indian Express.

Broader Impact and What’s Next

This suspension is more than a postal inconvenience. It reflects broader disruptions in cross-border trade and e-commerce, especially for small businesses and individuals relying on affordable shipping. Several other countries—including those in Europe—have already paused mail to the U.S. under similar uncertainties.

Although India is navigating this challenge, the Department of Posts remains optimistic. The halt is described as temporary, pending clarification and readiness from both U.S. authorities and transport partners ThePrintThe Times of India+1.

What Customers Should Know

  • If your item is a letter, document, or gift under USD 100, it will still go through as usual.
  • For any other type of parcel, don’t be alarmed—you can request a postage refund, and India Post will process it.
  • Keep an eye out for updates, as the restoration of full services will depend on how quickly the U.S. provides operational clarity.

Summary

India has paused most postal shipments to the U.S. beginning 25 August 2025, due to the U.S. ending duty-free entry for low-value items and failing to clarify duty-collection procedures. Excepted are letters, documents, and gifts under USD 100. The situation remains in flux, but India Post is actively working with U.S. authorities and carriers to resolve the issue and resume normal operations as soon as possible.

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