India Post Suspends US Postal Bookings After Revised US Duty Rules

The Department of Posts has announced the temporary suspension of postal bookings to the United States starting 25 August 2025, following recent regulatory changes imposed by the US administration.

From this date, only letters, documents, and gift parcels up to $100 will be accepted for delivery to the US until further notice. The move comes after the United States issued Executive Order No. 14324 on July 30, 2025, which withdraws the duty-free exemption for goods valued up to $800.

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New US Duty Rules

Under the revised framework, all international postal items to the US will attract customs duties, in line with the International Emergency Economic Power Act (IEEPA) tariff system. Gift items valued up to $100, however, will continue to remain exempt.

The Department of Posts said it is working closely with stakeholders to restore services at the earliest and regretted the inconvenience caused to customers.

Why Services Were Halted

The order requires transport carriers or “qualified parties” designated by US Customs and Border Protection (CBP) to collect and remit these duties. However, since several key processes remain undefined, US-bound air carriers have expressed their inability to accept consignments, forcing India Post to halt services.

Market Insights

The suspension may temporarily impact cross-border trade, small businesses, and individuals sending goods to the US, particularly exporters who rely on postal networks for low-value consignments. With customs duties now applicable on most goods, costs for US-bound shipments are likely to increase, affecting competitiveness.

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