India’s Department of Posts halts US-bound parcels amid new customs rules

Amid changes in the United States’ customs regulations, the Department of Posts in India has announced a temporary suspension on the booking of most postal items bound for the US, effective from August 25.

India Post
Two women interacting near an India Post office. Photo courtesy: x.com/IndiaPostOffice

The decision follows recent developments under an Executive Order issued by the US administration, which alters the framework for duty-free imports into the country.

According to the Ministry of Communications, the suspension will apply to all categories of postal articles, with the exception of letters, documents, and gift items valued up to USD 100. These exempt items will continue to be accepted and processed, pending further clarity from US Customs and Border Protection (CBP) and the United States Postal Service (USPS).

The move comes in the wake of an Executive Order dated 30 July 2025, which withdraws the de minimis exemption for goods valued up to USD 800.

This exemption had previously allowed such items to enter the US without incurring customs duties. From 29 August onwards, all international postal shipments entering the US will be subject to duties under the International Emergency Economic Power Act (IEEPA) tariff framework. However, the exemption for gift items up to USD 100 in value will continue to apply.

The US directive further mandates that transport carriers handling international postal shipments, or other authorised entities designated as “qualified parties” by CBP, will be responsible for collecting and remitting the applicable duties.

Although CBP released partial guidelines on 15 August, key operational aspects such as the identification of qualified parties and the exact processes for duty collection remain undefined.

In light of this regulatory uncertainty, several air carriers have informed the Department of Posts of their inability to handle US-bound consignments from 25 August onwards, citing operational and technical limitations. As a result, the Department has been compelled to halt the acceptance of most items destined for the US.

The Department has advised customers who have already booked items that cannot now be dispatched to seek a refund of postage. It further stated that efforts are ongoing, in coordination with stakeholders, to resume normal operations as early as possible.