On Saturday, the Department of Posts stated that all postal services to the United States would be temporarily suspended starting on August 25 due to changes in US customs regulations that would take effect later this month.
The ruling comes in response to Executive Order No. 14324, which was issued by the US government on July 30 and which removes the duty-free de minimis exemption for items up to $800.
US Tariffs Spark Postal Service Suspension
The postal service suspension coincides with rising trade tensions; last week, US President Donald Trump imposed a 25% tariff on India and another 25% penalty for buying Russian oil, effectively increasing the overall tariff burden to 50%.
New US Customs Rules Under IEEPA
As per the country-specific International Emergency Economic Power Act (IEEPA) tariff system, "all international postal items destined for the USA, regardless of their value, shall be subject to customs duties as of August 29," the Department of Posts said in a news release. The statement did emphasize, though, that gifts up to $100 would still be free.
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Role of Transport Providers and CBP
The new order mandates that transport providers who distribute products via the international postal network or other “qualified parties” that have been authorized by US Customs and Border Protection (CBP) collect and pay customs.
The report states that even though CBP released instructions on August 15, a number of procedures pertaining to the identification of "qualified parties" and duty collection systems are still "undefined."
Suspension of US Postal Bookings
Due to a lack of operational readiness, US-bound airlines have notified Indian authorities that they will not be able to accept shipments beyond August 25.
The press announcement stated, "Given 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 August 25, 2025, with the exception of letters/documents and gift items up to $100 in value."
Refunds and Service Restoration Efforts
Customers who have already reserved undeliverable items may get a postage refund, the department added. Additionally, it stated that "every effort is being made to normalize services at the earliest possible opportunity, and we are closely monitoring the evolving situation in coordination with all stakeholders."
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