India Post Extends Suspension Of US-bound Shipments As Duty System Remains Undefined

The Department of Posts has extended the suspension of all categories of mail services to the United States - including letters, documents, and gifts valued up to $100 - following confusion over new U.S. import duty rules. This comes just days after parcel services were halted.

In a notification issued on Friday, India Post said: "In view of the inability of carriers to transport U.S.-bound mail and undefined regulatory mechanisms, it has been decided to completely suspend booking of all categories of mail, including letters/documents and gifts valued up to USD 100, destined for the USA."

The department assured that it is monitoring developments closely and working to restore services at the earliest. Customers who have already booked items that could not be dispatched will be eligible for a refund of postage. "Inconvenience caused to our esteemed customers is deeply regretted," the notice added.

The disruption stems from the Trump administration's decision to scrap the global "de minimis" rule, which previously allowed goods under $800 to enter the U.S. with minimal paperwork. Effective August 29, all parcels entering the U.S. will now attract customs duties, with the exception of small gifts valued under $100, according to an Executive Order issued on July 30.

Deputy Director General (IR&GB) LK Dash said the decision to suspend was unavoidable. "We have no other alternative but to suspend. We can't go on inconveniencing the customers," he told Hindustan Times.

Asked why letters and small gifts - which remain exempt from duties - were also suspended, Dash explained: "If airlines refuse to carry the parcels, we simply have no alternative."

Under the new U.S. rules, airlines or other approved agencies are required to collect and pay customs duties on incoming parcels. However, the U.S. authorities have not clarified which agencies will be responsible or how the duty collection mechanism will function. As a result, airlines have declined to carry parcels to the U.S.

On average, India Post ships around 3 tonnes of cargo daily to the U.S., amounting to 100 to 200 tonnes every month. The department has not yet explored temporary arrangements with private couriers but may consider discussions to create alternate routing options.

India is not alone in facing this challenge. Reports suggest that more than 25 countries have also suspended outbound postal services to the U.S., citing uncertainty over transit and duty collection arrangements.