India Post Suspends US-Bound Parcels Amid New US Customs Duty Framework

The Department of Posts, Government of India, has announced the temporary suspension of booking for all categories of postal articles destined for the United States, effective 25 August 2025, in response to changes introduced by the U.S. Administration through Executive Order No. 14324, issued on 30 July 2025.

Background: Withdrawal of Duty-Free De Minimis Exemption

Under the Executive Order, the longstanding duty-free de minimis exemption—which previously allowed goods valued up to USD 800 to enter the United States without customs duties—will be withdrawn effective 29 August 2025.

This policy shift means that all international postal shipments to the U.S., regardless of their declared value, will now be subject to customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework.

The only exemption that remains in place is for gift items up to USD 100 in value, which will continue to be admitted duty-free.

Implementation Challenges and Air Carriers’ Response

According to the Executive Order, transport carriers delivering goods via the international postal network, or other “qualified parties” approved by the U.S. Customs and Border Protection (CBP), will be responsible for collecting and remitting customs duties on behalf of consignees.

While the CBP issued preliminary guidelines on 15 August 2025, several critical aspects—such as the designation of qualified parties, duty collection mechanisms, and remittance procedures—remain undefined and operationally unclear.

As a result, U.S.-bound air carriers have expressed their inability to accept parcels and consignments beyond 25 August 2025, citing lack of technical readiness, system integration gaps, and compliance uncertainties.

Department of Posts’ Decision

In light of these developments, the Department of Posts has announced the following measures:

• Suspension of Booking: All categories of postal articles to the USA—including parcels, merchandise, and commercial shipments—will be suspended from 25 August 2025.

• Exempt Categories: Only letters/documents and gift consignments valued up to USD 100 will continue to be accepted and dispatched.

• Refunds for Customers: Customers who have already booked non-exempt articles that cannot be dispatched will be eligible for refunds of their postage.

The Department emphasized that this is a temporary measure until further clarity emerges from CBP and USPS on compliance procedures.

Monitoring and Stakeholder Engagement

The Department of Posts assured that it is closely monitoring the situation in consultation with:

• U.S. Customs and Border Protection (CBP).

• The United States Postal Service (USPS).

• Air carriers and logistics operators.

• Other relevant international stakeholders.

Officials stressed that all possible efforts are being undertaken to normalize postal services to the United States at the earliest.

Implications for Indian Customers and Businesses

The suspension is expected to impact individual senders, exporters, and e-commerce businesses who rely on India Post’s international parcel services to the U.S.—a key market for Indian merchandise and online trade.

Industry experts warn that until clear duty collection frameworks are established by U.S. authorities, exporters may face uncertainties, delays, and higher compliance costs. This is likely to push some businesses to temporary reliance on private courier networks, though these too will need to comply with the new U.S. customs requirements.

Department’s Assurance

Expressing regret over the inconvenience, the Department of Posts stated:

“The Department deeply regrets the disruption caused to customers and assures that all necessary measures are being pursued to resume full services to the USA at the earliest possible opportunity.”

This development marks a significant shift in global postal and trade dynamics, as the U.S. withdrawal of the de minimis exemption—a facility widely used by e-commerce platforms, small traders, and individual customers—reshapes the way international shipments will be handled going forward.