India Post Temporarily Halts Most Shipments to the U.S. Amidst New Duty Regulations
India Post Temporarily Halts Most Shipments to the U.S. Amidst New Duty Regulations
India Post has announced a temporary suspension of most postal services to the United States, effective August 25. The decision comes in response to new U.S. duty rules that will eliminate the duty-free exemption on goods valued up to $800.
The new regulations, stemming from the International Emergency Economic Power Act (IEEPA) tariff framework and taking effect on August 29, will impose customs duties on all postal items entering the U.S., regardless of their value. The only exception will be gift items valued at or below $100.
Due to a lack of clarity regarding the new duty collection process, which mandates that only "qualified parties" approved by U.S. Customs can collect and pay duties, airlines have stated their inability to transport U.S.-bound parcels after August 25.
In light of this, India Post will suspend the booking of all articles for the U.S., with the exception of letters, documents, and gift items valued up to $100. Customers who have already booked parcels that cannot be dispatched are eligible for a postage refund.
The Department of Posts expressed regret for the inconvenience caused and assured customers that it is taking all necessary steps to resume full services to the U.S. as soon as possible.
India is not the only nation affected by the new rules. According to a Reuters report, postal services in Scandinavia, Austria, France, and Belgium have also paused parcel deliveries to the U.S. Deutsche Post DHL's German parcel service will similarly halt its standard U.S.-bound parcels from August 25, though its premium DHL Express service will remain unaffected.
These changes are part of broader trade policy shifts by the U.S. administration. President Donald Trump, in his second term, has also imposed retaliatory tariffs on several nations, including India. In August, the Trump administration increased tariffs on Indian exports to 50% from 25%, citing India's ongoing purchases of Russian crude oil.
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