Starting Aug 25, India Post will temporarily stop sending parcels to the US due to new customs rules. Letters and gifts under $100 are still allowed.
Introduction
The Department of Posts, India has announced that it will temporarily stop all postal services to the United States starting August 25, 2025. The decision comes in response to changes in US customs rules and growing trade tensions between the two countries.
Background: Rising Strains in India-US Trade
This development is linked to the broader trade dispute between New Delhi and Washington. Recently, US President Donald Trump raised tariffs on Indian goods by 25%, along with another 25% penalty on imports tied to Russian oil. Together, these measures have doubled the tariff burden to 50%, creating new challenges for India-US trade relations.
New US Customs Rules Under IEEPA
Beginning August 29, 2025, the United States will enforce stricter customs regulations under the International Emergency Economic Power Act (IEEPA).
- Every international postal item sent from India to the US will now face customs duties, regardless of its value.
- The only exemption applies to gift parcels worth $100 or less, which will continue to be duty-free.
The Role of Carriers and Customs Authorities
As part of the updated framework, the US Customs and Border Protection (CBP) requires:
- Airlines and transport companies to collect and remit customs duties on shipments.
- Only “qualified parties”, officially recognized by CBP, will be allowed to manage compliance procedures.
However, the CBP has yet to clearly define who qualifies and how duties will be collected, leaving many gaps in implementation.
Challenges for Air Carriers
Because of this uncertainty, several airlines have already told Indian authorities that they cannot accept shipments to the US after August 25. Carriers say they are not operationally ready to meet the new compliance requirements, forcing India Post to halt services until further notice.
Department of Posts’ Official Announcement
In its official statement, the Department of Posts confirmed:
“With effect from August 25, 2025, the booking of all types of postal articles addressed to the United States will be suspended, except for letters, documents, and gifts under USD 100 in value.”
The suspension is temporary and will remain in place until carriers and customs officials finalize the new processes.
What This Means for Businesses and Individuals
The suspension will impact different groups in significant ways:
- E-commerce exporters may face shipment delays and added costs, making it harder to serve US customers.
- Small businesses that rely on postal services could be forced to switch to private couriers, increasing expenses.
- Individuals sending parcels to friends or family in the US will be restricted to letters, documents, or gifts valued below $100.
Conclusion
India’s decision to suspend postal services to the United States underscores how quickly policy shifts and tariff changes can disrupt global supply chains. Until the US clarifies its customs framework and carriers adjust to the new system, Indian businesses and individuals will have limited shipping options for US-bound consignments.