India temporarily suspends postal services to US amid lack of clarity on American customs rules

NEW DELHI: In a significant development with far-reaching implications for trade and personal shipments, the Department of Posts announced on Saturday a temporary suspension of all postal services to the United States, effective 25 August, citing operational challenges arising from new US customs regulations. The move follows the issuance of Executive Order No. 14324 by the US administration on 30 July, which revokes the long-standing duty-free de minimis exemption for imported goods valued at up to USD 800. The new rules, coming into effect on 29 August, will subject all international shipments to customs duties under the International Emergency Economic Powers Act (IEEPA) framework. All international postal items destined for the USA, regardless of their value, shall be subject to customs duties, an official release from the Ministry of Communications said, adding that only letters/documents and gift items valued up to USD 100 will remain exempt for the time being. Although the US Customs and Border Protection (CBP) issued preliminary guidelines on 15 August, key components of the new customs framework, including the designation of qualified parties authorised to collect and remit duties, remain undefined, according to the department. Several critical processes remain undefined. Consequently, US-bound air carriers have expressed their inability to accept postal consignments after 25 August 2025, citing lack of operational and technical readiness, the official press release noted. The suspension comes amid escalating trade tensions between New Delhi and Washington. President Donald Trump recently announced a 25% tariff on Indian goods, coupled with an additional 25% penalty allegedly targeting Indias purchases of Russian oil, effectively raising the total tariff burden on certain imports to 50%. These developments have sparked concerns within Indias trade and logistics sectors, particularly given the volume of small-scale exports and personal shipments reliant on international postal services. The Department of Posts emphasised that customers who have already booked shipments to the US falling outside the allowed categories can apply for a full refund of postage fees. It also sought to reassure users that the situation is being closely monitored in coordination with US authorities and logistics partners. The Department is closely monitoring the evolving situation and every effort is being made to normalise services at the earliest possible opportunity, it said. Until further notice, only the following categories will be accepted for dispatch to the US: letters and documents, and gift items up to USD 100 in value. All other categories, including commercial packages, e-commerce shipments, and parcels exceeding the exemption limit, will be blocked from booking starting 25 August. This temporary halt in postal services to one of Indias major international partners marks a rare disruption and highlights the broader uncertainties introduced by shifting US trade and customs policies. How long the suspension will last remains unclear as it hinges on further clarity from US authorities and readiness of air carriers to comply with the new framework, explained an official.