New Delhi, August 23, 2025: The Department of Posts has announced a temporary suspension of most categories of postal services to the United States, effective August 25, 2025, following operational challenges arising from new U.S. trade regulations.
The decision comes in response to the Executive Order No. 14324 issued by the U.S. Administration on July 30, 2025, which removes the long-standing duty-free de minimis exemption for imported goods valued up to USD 800. Under the new framework, all international postal items bound for the U.S., regardless of their value, will now be subject to customs duties. The only exception is for gift items valued at USD 100 or less, which will continue to enjoy duty-free treatment.
Impact of the Executive Order
The Executive Order directs that transport carriers and “qualified parties” approved by the U.S. Customs and Border Protection (CBP) must collect and remit duties on all postal shipments. While CBP issued initial guidelines on August 15, 2025, critical processes such as the designation of “qualified parties” and mechanisms for duty collection remain undefined.
This regulatory uncertainty has prompted U.S.-bound air carriers to halt acceptance of most postal consignments after August 25, 2025, citing the absence of clear operational and technical readiness.
Department of Posts’ Response
In light of these developments, the Department of Posts has decided to temporarily suspend the booking of all postal articles to the U.S., except for two exempt categories:
Letters and documents
Gift items valued up to USD 100
These items will continue to be accepted and delivered, subject to further clarifications from the CBP and the United States Postal Service (USPS).
The Department emphasized that this suspension is a temporary measure and assured customers that services will be normalized as soon as the necessary mechanisms are finalized in coordination with U.S. authorities and international carriers.
Refunds for Affected Customers
For customers who have already booked parcels or consignments that cannot be dispatched due to these new restrictions, the Department has clarified that they may seek refunds of postage charges. The Department expressed regret for the inconvenience caused and reaffirmed its commitment to resolving the disruption at the earliest possible opportunity.
Broader Implications for Trade and Consumers
This suspension is expected to impact both personal and business consignments between India and the United States. Small exporters, e-commerce sellers, and individuals who frequently send parcels to the U.S. will likely face immediate disruptions.
The removal of the USD 800 duty-free threshold marks a significant policy shift by the U.S. administration, reflecting its broader tariff strategy under the International Emergency Economic Power Act (IEEPA) framework. For Indian businesses engaged in cross-border trade, the new regulations will mean higher compliance costs, increased duties, and longer processing times.
On the consumer side, individuals sending personal packages or gifts above the USD 100 threshold will now face additional customs duties, making overseas shipments more expensive. This could particularly affect the Indian diaspora in the U.S., who regularly receive packages from family and friends in India.
Monitoring and Next Steps
The Department of Posts stated that it is closely monitoring the situation and working with all stakeholders, including CBP, USPS, and international air carriers, to ensure that services can be resumed in a phased manner. Updates are expected in the coming weeks as U.S. authorities finalize the operational framework for duty collection on postal shipments.
For now, customers are advised to limit U.S.-bound bookings to letters, documents, and gift items under USD 100, until further notice.
Key Takeaways:
Effective August 25, 2025, India suspends booking of most postal items to the U.S.
Only letters/documents and gifts under USD 100 will be accepted.
Triggered by U.S. withdrawal of duty-free de minimis exemption (USD 800).
Air carriers unable to accept consignments due to unclear U.S. duty collection rules.
Refunds available for undeliverable items already booked.
Businesses and individuals likely to face higher costs and delays.
Disclaimer:
This article is based on the official press release issued by the Press Information Bureau (PIB) and publicly available information as of August 23, 2025. The situation is evolving, and updates may be issued by the Department of Posts, U.S. Customs and Border Protection (CBP), or the United States Postal Service (USPS). Readers are advised to check official government notifications and postal service updates for the latest information before sending any consignments.
