India suspends most postal services to the US amid new duty rules from Aug 25

India’s Department of Posts announced a temporary suspension of most parcel services to the United States starting Aug 25, following changes in US customs regulations.

According to media reports, the decision was driven by operational challenges associated with the new import duty framework.

From the said date, only letters, documents, and gift items valued up to $100 will be accepted for dispatch to the US while all other categories of parcels will be temporarily halted.

The Department of Posts has assured customers that refunds for already booked items will be processed.

This action stems from a July 30 Executive Order by the US administration, which removes the longstanding ‘de minimis’ exemption allowing imported goods valued at $800 or less to enter duty-free.

“De minimis” in trade and customs refers to the minimum value threshold below which goods can enter a country without paying customs duty or taxes.

The exemption, already withdrawn for shipments from China and Hong Kong, has now been universally revoked effective Aug 29.

Although US Customs and Border Protection (CBP) issued preliminary guidelines on Aug 15, critical procedures remain undefined — particularly regarding the designation of "qualified parties" permitted to collect and remit customs duties.

This ambiguity led several US-bound air carriers to inform India that they cannot accept postal consignments past Aug 25 due to insufficient technical readiness.

India is not alone in this, as postal services from several European countries — including France, Germany, Austria, Belgium, Slovenia and Scandinavian nations — have also paused deliveries to the US in response to the duty-policy shift. Private courier firms like DHL are also limiting their US - bound service options, though premium services remain in operation.

The broader US trade and customs policy shift comes in the backdrop of heightened tensions with India. Alongside the duty rule change, the US has imposed 25% tariffs on Indian goods, with an additional penalty of 25% linked to continued Russian oil imports, cumulatively raising the tax burden to 50%.

India Post emphasized that it is working closely with stakeholders to resume normal services as soon as possible. However, a return to full service depends on clearer protocols from US agencies and logistical readiness across carriers.

For now, personal packages and business shipments will face delays and added complexity.