India Halts Postal Services to USA Amid Customs Policy Shift

India: The Department of Posts has announced a temporary suspension of all postal services to the United States starting August 25, in response to sweeping changes in US customs regulations. The move comes in the wake of Executive Order No. 14324, signed by the US administration on July 30, which effectively eliminates the long-standing duty-free exemption for imports valued up to $800.

The order, set to take effect from August 29, requires all goods shipped to the United States—irrespective of their value—to undergo customs clearance and be subjected to duties under the International Emergency Economic Power Act (IEEPA) tariff framework. However, an exception has been made for gift parcels worth up to $100, which will continue to be exempt from duty.

India: Postal Services Hit Amid Rising Trade Tensions

This suspension comes against a broader backdrop of intensifying India–US trade tensions. Recently, US President Donald Trump imposed a 25% tariff on Indian imports, along with an additional 25% penalty for India’s continued purchase of Russian crude oil, effectively doubling the tariff burden to 50%.

The Department of Posts stated that air carriers and logistics providers expressed their inability to handle consignments under the new customs framework, citing the absence of clear operational procedures from the US Customs and Border Protection (CBP). While the CBP issued guidelines on August 15, it has yet to finalize mechanisms for duty collection and define which parties qualify to handle international shipments.

Services Suspended, Exceptions Noted

“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 official statement said.

The department clarified that customers who have already booked undeliverable parcels will be eligible for a refund of postage fees. Officials further assured that efforts are underway to engage with US authorities and global shipping partners to restore services as soon as possible.

What This Means for Indian Senders

The suspension will likely disrupt thousands of shipments between India and the United States, impacting businesses, e-commerce sellers, and families who regularly rely on postal services to send goods and personal items. Industry experts warn that small exporters, in particular, could face significant losses, as they often depend on the affordable postal channel to reach American customers.

For now, Indian citizens can still send letters, documents, and low-value gifts to the United States. However, larger consignments, merchandise, and parcels will remain restricted until a streamlined system for customs duty collection is established.