The Department of Posts on Saturday announced a temporary suspension of all postal services to the United States from August 25, following new regulations announced by the US Government that change how goods are shipped into the country. However, services will continue for letters, documents and gift items up to $100. Under an Executive Order issued by the US administration on July 30, 2025, goods valued above $100 will be subject to customs duties in America with effect from August 29 onwards. The move comes after the US administration issued Executive Order Number 14324 on July 30, 2025, withdrawing the duty-free exemption on imported goods worth up to $800. From August 29, all goods entering the US will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework.
Gift items up to USD 100 will continue to remain duty-free. The change comes amid trade tensions, after US President Donald Trump imposed 25 per cent tariff on India along with an additional 25 per cent as penalty for purchasing Russian oil.
India is not alone in halting shipments. Postal groups in Scandinavia, Austria, France and Belgium have also paused parcel deliveries to the US ahead of the rule change. Europe also decided to stop sending parcels to the United States.
In a statement, the Department of Posts has taken note of the Executive Order No. 14324 issued by the US. Administration on 30th July, 2025, under which the duty-free de minimis exemption for goods valued up to USD 800 will be withdrawn with effect from 29th August, 2025.
Consequently, 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. However, gift items up to the value of USD 100 shall continue to remain exempt from duties.
As per the Executive Order, transport carriers delivering shipments through the international postal network, or other “qualified parties” approved by the US. Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments. While CBP issued certain guidelines on 15th August, 2025, several critical processes relating to the designation of “qualified parties” and mechanisms for duty collection and remittance remain undefined. Consequently, US bound air carriers have expressed their inability to accept postal consignments after 25th August, 2025, citing lack of operational and technical 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 USD100 in value. “These exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from CBP and USPS,” the statement said.
“The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity. Customers who have already booked articles that cannot be dispatched to the USA due to these circumstances may seek a refund of postage. 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,” it said.
Economic think tank GTRI founder Ajay Srivastava said under the new regime rolled out by the US, all inbound parcels will attract tariffs, but international postal shipments remain duty-free until US Customs and Border Protection (CBP) establishes a new entry process and publishes it.
After the implementation of new norms, shipments will face one of two duty structures -- ad valorem duty based on the effective tariff rate under IEEPA, or a flat rate duty of USD 80, USD 160, or USD 200 per item, depending on the country’s tariff bracket.
“The suspension underscores the immediate fallout of Washington’s new trade measures, which are expected to disrupt global e-commerce and hit exporters in India and other countries that depended on small-value, duty-free shipping,” Srivastava said.