Daijiworld Media Network – New Delhi
New Delhi, Aug 23: In a significant disruption to international mail services, India Post has announced the temporary suspension of most postal services to the United States starting August 25, in response to sweeping changes in US customs policy.
The move will affect all categories of mail except letters, documents, and gift items valued up to $100, according to an official notification from the Department of Posts.
The suspension follows an executive order issued by the US government, which withdraws the duty-free ‘de minimis’ exemption for goods valued up to $800. The exemption, effective till August 28, had allowed low-value international shipments to enter the US without incurring customs duties.
Starting August 29, however, all international postal articles sent to the US, regardless of their value, will be subject to import duties under the International Emergency Economic Powers Act (IEEPA) tariff framework.
India Post said, “The Department of Posts has decided to temporarily suspend booking of all types of postal articles destined for the US with effect from August 25, except letters/documents and gift items up to $100 in value. These exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from US Customs and Border Protection (CBP) and the United States Postal Service (USPS).”
Officials cited uncertainty over implementation procedures as the primary reason for the suspension. While the CBP issued preliminary guidelines on August 15, several key operational details remain undefined — particularly regarding the designation of "qualified parties" authorised to collect and remit duties on international postal shipments.
As a result, US-bound air carriers have notified India Post that they are not in a position to handle postal consignments under the new regime beyond August 25, due to a lack of operational and technical preparedness.
India Post added that it is working closely with all stakeholders to resolve the issue and resume services at the earliest opportunity. In the meantime, customers who have already booked parcels now deemed undeliverable may apply for a refund of postage, and the department has expressed regret for the inconvenience caused.
The US administration has justified the policy change citing national security concerns. According to a White House statement, the de minimis exemption had been “abused” by some shippers to send illicit drugs, including fentanyl and synthetic opioids, into the country by exploiting lower-security protocols. These substances, it claimed, have contributed to a worsening public health crisis in the United States.
The Global Trade Research Initiative (GTRI), a New Delhi-based think tank, said the US move reflects a broader effort to tighten controls on cross-border e-commerce, which could have a significant impact on small-scale exporters, especially in India.
GTRI noted that until the CBP finalises and publishes a new entry system, international postal shipments will technically remain duty-free. However, once the new structure takes effect, all inbound parcels will face either ad valorem duties based on existing tariffs under IEEPA, or flat-rate duties of $80, $160, or $200, depending on the exporting country’s tariff bracket — below 16%, between 16–25%, or above 25%, respectively.
With uncertainty looming over how duties will be assessed on shipments arriving in the US after August 29, India Post has opted for a cautious approach by halting most mail to the country from August 25 onward.
“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 of communications stated.