Department Of Posts Announces Temporary Halt On Postal Services To USA Starting August 25 Due To Customs Changes

Updated: Saturday, August 23, 2025, 15:49 [IST]

The Department of Posts has announced a temporary halt on postal services to the United States starting August 25. This decision is in response to changes in US customs regulations set to take effect later this month. The suspension follows Executive Order No. 14324, which revokes the duty-free de minimis exemption for goods valued up to USD 800.

US President Donald Trump recently imposed a 25% tariff on India, with an additional 25% penalty for purchasing Russian oil, raising the total tariff burden to 50%. This move has intensified trade tensions between the two nations. Consequently, all international postal items destined for the USA will be subject to customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework from August 29.

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The Department of Posts temporarily suspended postal services to the United States from August 25 due to US customs regulation changes following Executive Order 14324 and increased tariffs, affecting international postal items under the IEEPA framework; however, gift items valued up to USD 100 remain exempt.

Impact on Postal Services

The Department of Posts clarified that gift items worth up to USD 100 will remain exempt from these duties. However, transport carriers delivering shipments through the international postal network or other "qualified parties" approved by US Customs and Border Protection (CBP) must collect and remit duties. Despite CBP issuing guidelines on August 15, several processes regarding "qualified parties" and duty collection mechanisms are still undefined.

Due to these uncertainties, US-bound air carriers have informed Indian authorities that they cannot accept consignments after August 25 due to operational readiness issues. As a result, the Department of Posts decided to temporarily suspend booking all types of postal articles destined for the USA from August 25, except letters/documents and gift items up to USD 100 in value.

Customer Guidance and Future Steps

The department has advised customers who have already booked undeliverable items to seek a refund of postage. It is closely monitoring the evolving situation in coordination with all stakeholders and is making every effort to normalize services at the earliest possible opportunity.

This development highlights the ongoing challenges in international trade and logistics amid changing regulatory landscapes. The Department of Posts' proactive measures aim to mitigate disruptions while ensuring compliance with new customs rules.