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HomeDiplomacyIndia Post suspends services to US amid uncertainty over new duty rules

India Post suspends services to US amid uncertainty over new duty rules

Letters/documents, gift items worth up to $100 are exempted from suspension, taking effect from 25 August. Trump administration has withdrawn its duty-free exemption on low-value imports.

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New Delhi: The Indian Department of Posts Saturday announced the temporary suspension of the booking of most categories of postal articles to the United States from 25 August, after the Donald Trump-led government withdrew its long-standing duty-free exemption on low-value imports.

In a press release, the Ministry of Communications said that the suspension would apply to all international postal consignments, except letters/documents and gift items worth up to $100. 

The decision was prompted by operational uncertainties following a 30 July executive order issued by the US administration, which ended the de minimis exemption that allowed goods worth up to $800 to be imported duty-free. Starting 29 August, every item entering the US international postal network, regardless of its value, will now be subject to customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. However, gift items worth up to $100 make up the only category still exempt.

According to the US directive, duties on postal imports are to be collected and remitted by international transport carriers, or other “qualified parties” designated by the US Customs and Border Protection (CBP).

However, while CBP issued preliminary guidelines on 15 August, key processes related to the identification of such qualified parties and the mechanisms for duty collection remain undefined.

Airlines handling US-bound consignments have expressed inability to transport postal shipments beyond 25 August, citing lack of operational and technical readiness. This has left India Post with little option, but to suspend bookings temporarily.

“The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity,” the ministry statement read.

Customers who have already booked items that fall under the suspended categories will be able to seek a refund of postage. India Post assured that it was in close touch with US authorities, carriers, and the United States Postal Service (USPS) to work towards resuming full services.

The suspension marks a significant disruption for cross-border e-commerce and individuals sending parcels to the US, given that the de minimis exemption has been a key feature of postal trade flows for several years. The ministry said further updates will be issued after more clarity from US authorities.

(Edited by Mannat Chugh)


Also Read: ‘Maharaja of tariffs’, ‘laundromat’ for Russia—Trump aide Navarro’s latest broadside at India


 

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