India Suspends Postal Services to US from August 25 Over New Customs Rules

The Department of Posts on Saturday announced a temporary suspension of all postal services to the United States from August 25, citing changes in US customs regulations set to take effect later this month.

The decision 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 $800. From August 29, all international postal items bound for the US will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. Gift items worth up to $100, however, will remain exempt.

Under the new order, transport carriers and other “qualified parties” approved by US Customs and Border Protection (CBP) must collect and remit duties. CBP issued guidelines on August 15, but several key processes—such as the designation of “qualified parties” and duty collection mechanisms—are still undefined.

As a result, US-bound air carriers have informed Indian authorities that they cannot accept consignments after August 25 due to lack of operational readiness.

“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 $100 in value,” the department said in a statement.

It added that customers who have already booked undeliverable items may seek refunds, and that authorities are “closely monitoring the evolving situation” with efforts underway to restore services at the earliest opportunity.