India Halts Postal Shipments To The US: What’s Behind The Sudden Suspension?

The Department of Posts announced on Saturday a temporary suspension of all postal services to the United States, citing changes in US customs regulations that will come into effect later this month. The move follows Executive Order No. 14324, issued by the US administration on July 30, which withdraws the duty-free de minimis exemption for goods valued up to USD 800.  

Reason Behind Postal Services Suspension

According to the Department of Posts, from August 29, “all international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act (IEEPA) tariff framework.”

The department clarified that gift items up to USD 100 will continue to remain exempt.  

The suspension occurs amid escalating trade tensions between India and the US. US President Donald Trump recently imposed a 25 per cent tariff on India, along with an additional 25 per cent penalty for purchases of Russian oil, effectively raising the total tariff burden to 50 per cent.  

Postal Carriers Highlight Operational Issues

Under the new order, transport carriers delivering shipments through the international postal network or other “qualified parties” approved by US Customs and Border Protection (CBP) are required to collect and remit duties.

While CBP issued guidelines on August 15, several processes, including the designation of qualified parties and mechanisms for duty collection, remain undefined.  

As a result, US-bound air carriers have informed Indian authorities that they will be unable to accept consignments after August 25 due to lack of operational readiness.  

Is This A Temporary Suspension?

“In view of the above, the Department of Posts has decided to temporarily suspend booking of all types of postal articles destined for the USA with effect from 25th August, 2025, except letters/documents and gift items up to USD 100 in value,” the department said.  

Customers who have already booked items that cannot be delivered may seek a refund of postage.

The department added that it is “closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalize services at the earliest possible opportunity.”  

Also Read: Jaishankar Makes Big Statement About Trump’s Foreign Policy: ‘No US President Has…’