Postal Services to USA Face Suspension Amid New Tariff Rules

The Department of Posts has responded to the US Administration's Executive Order No. 14324, effective July 30, which revokes the duty-free de minimis exemption for goods under USD 800, effective August 29. This change mandates customs duties on all international postal items to the USA as per the International Emergency Economic Power Act (IEEPA) tariff framework. Gifts valued up to USD 100 remain duty-free.

The Executive Order requires transport carriers in the international postal network and other 'qualified parties' approved by U.S. Customs and Border Protection (CBP) to collect and remit duties on postal shipments. Although guidelines were issued by CBP on August 15, the processes for designating 'qualified parties' and duty remittance mechanisms remain unresolved.

Air carriers directed towards the US have stated an inability to accept postal consignments post-August 25 due to operational unpreparedness. Consequently, the Department of Posts will suspend bookings of all types of postal articles to the USA from August 25, excluding letters/documents and gifts up to USD 100. These exceptions will remain in place pending further clarifications from CBP and USPS.

The Department is actively monitoring the situation with stakeholders and striving to resume services promptly. Customers unable to dispatch booked articles to the USA may request a postage refund. Apologies have been extended to customers for any inconvenience caused, alongside assurances of measures to restore full services swiftly. (ANI)