India Post halts parcel services to US from August 25 amid new US customs rules
PTC Web Desk: The Department of Posts has announced a temporary suspension of most parcel services to the United States starting August 25, following major changes in American customs duty rules that take effect later this month.
The US government, through an order issued on July 30, has withdrawn the duty-free exemption for imported goods valued up to USD 800. Beginning August 29, all postal items sent to the US—irrespective of their value—will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. Only gift consignments worth up to USD 100 will remain exempt.
According to the new directive, only international carriers and “qualified parties” authorised by US Customs will be able to collect and remit duties on postal shipments. However, the process of approving such parties and setting up the duty collection mechanism remains unclear. Due to this uncertainty, airlines have informed India Post that they will not be able to carry parcels bound for the US after August 25.
In response, the Department of Posts has decided to suspend the booking of all US-bound articles, except for letters, documents, and gifts within the USD 100 limit. Customers who have already booked consignments that cannot be dispatched will be eligible for a refund of postage.
“The Department of Posts deeply regrets the inconvenience caused to customers and assures that efforts are being made to restore full services to the USA at the earliest,” the ministry said in a statement.
India is not the only country taking such measures. Postal operators in Scandinavia, Austria, France, and Belgium have also announced a halt to US parcel deliveries, according to a Reuters report. Deutsche Post DHL has similarly stated that its German parcel service will stop accepting standard US shipments from August 25, though its premium DHL Express service will continue unaffected.
The new US trade order comes as part of a wider set of tariff measures introduced under President Donald Trump’s second term. Recently, Washington imposed an additional 25 per cent tariff on Indian exports, doubling the overall rate to 50 per cent. The move was justified by the Trump administration on grounds of India’s continued purchase of Russian crude oil despite international pressure.
- With inputs from agencies
