India Suspends Postal Services to US Amid New Customs Rules

• The Department of Posts has temporarily suspended all postal services to the United States.
• The suspension starts on August 25 due to new US customs rules.
• A US Executive Order has withdrawn the duty-free exemption on goods up to $800.
• Air carriers are unable to accept consignments due to a lack of operational readiness.

GG News Bureau
New Delhi, 23rd Aug: The Department of Posts announced in a statement on Saturday that all postal services to the United States will be temporarily suspended from August 25, due to changes in US customs rules set to come into effect later on this month.

In a press statement, the department said that 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.”

According to Executive Order No. 14324, issued on July 30th 2025, duty-free exemption on imported goods worth up to $800 is withdrawn. However, letters, documents and gift items up to $100 will remain duty-free.

The change comes amid trade tensions, after US President Donald Trump imposed a 25 per cent tariff on India along with an additional 25 per cent as a penalty for purchasing Russian oil. The Executive Order mandates that transport carriers or other “qualified parties” approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments. As a result, US-bound air carriers stated that due to lack of operational and technical readiness, they will be unable to accept postal consignments.

“The Department of Posts deeply regrets the inconvenience caused to customers and assures that all possible measures are being undertaken to resume full services to the USA at the earliest,” the statement said, while adding that it is closely monitoring the situation and making efforts to normalise services soon.