US Ends De Minimis Rule: Postal Service to Halt Non-letter Exports
The US withdrawal of duty-free exemptions for international goods up to USD 800 forces the Department of Posts to suspend most US-bound parcels from August 25. Only documents and gifts under USD 100 are exempt. Air carriers cite lack of readiness, and operations await further guidance from US authorities.
- Country:
- India
The Department of Posts has been prompted to take significant action following the US Administration's Executive Order No. 14324, issued on July 30, which eliminates the duty-free de minimis exemption for goods valued up to USD 800, starting August 29. The Ministry of Communications announced that all international postal items headed to the USA will now incur customs duties according to the IEEPA tariff framework. Gifts up to USD 100 remain duty-free.
Transport carriers, along with other 'qualified parties' under the US Customs and Border Protection (CBP), are now tasked with duty collection and remittance on international postal shipments, as per the executive mandate. The CBP has released guidelines, but gaps remain regarding the designation of 'qualified parties' and the mechanisms for duty collection.
US-bound air carriers, citing operational and technical challenges, have opted against accepting postal shipments after August 25. Consequently, the Department of Posts will suspend booking of all postal articles to the USA, except for letters, documents, and gift items valued up to USD 100, effective August 25, pending further instructions from CBP and USPS. The department vows to reinstate services promptly, coordinating closely with all stakeholders.
Customers holding receipts for non-dispatchable items are eligible for postage refunds. The Department apologizes for the inconvenience and is committed to resuming full service to the USA swiftly.
(With inputs from agencies.)
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