India halts postal services to US from Aug 25; lack of clarity on US customs rules

New Delhi: Postal services from India to the United States have been put on hold after American-bound air carriers declined to carry shipments, citing lack of clarity in the new customs framework introduced by Washington. The Ministry of Communications confirmed on Saturday that the suspension took effect on August 25, 2025.

According to the ministry, the decision was prompted by an executive order issued by the US administration on July 30, 2025, which mandated that goods valued at more than USD 100 would attract customs duties from August 29 onwards. Under the order, international postal consignments could only be transported by carriers or other entities recognized as “qualified parties” by the US Customs and Border Protection (CBP). These entities would be tasked with collecting and remitting customs duties on behalf of the US government.

“While CBP issued certain guidelines on August 15, 2025, several critical processes relating to the designation of ‘qualified parties’ and mechanisms for duty collection and remittance remain undefined,” the ministry said in a statement. It added that, due to the uncertainty, “US-bound air carriers have expressed their inability to accept postal consignments after August 25, 2025, citing lack of operational and technical readiness.”

As a result, the Department of Posts announced the suspension of booking all categories of articles destined for the US, except letters, documents, and gifts valued up to USD 100. “These exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from CBP and USPS,” the ministry said.

Customers affected by the disruption have been assured of refunds. “Customers who have already booked articles that cannot be dispatched to the USA due to these circumstances may seek a refund of postage,” the ministry noted, adding that every effort is being made to restore full services as early as possible.

Ajay Srivastava, founder of economic think tank GTRI, explained the implications of the US order.

He said that once the new system is implemented, “all inbound parcels will attract tariffs,” marking a major departure from the previous framework where postal shipments enjoyed duty-free entry. Srivastava added that the US would impose either ad valorem duties based on tariff schedules under the International Emergency Economic Powers Act (IEEPA) or a flat rate duty of $80, $160, or $200 per item, depending on the country’s tariff classification. “This suspension reflects the immediate fallout of Washington’s trade measures, which are expected to disrupt cross-border e-commerce and particularly affect exporters in India and other countries,” Srivastava observed.