India’s Department of Posts has announced that, starting August 25, 2025, it will temporarily halt most postal services to the United States, following new US customs regulations that eliminate the longstanding duty-free exemption for goods valued under $800; only letters, documents, and gifts worth up to $100 will be accepted, as operational uncertainties and lack of clarity from US authorities force this abrupt suspension.

India Halts Most Postal Services to US Amid New Customs Rules

India’s decision to suspend most postal services to the United States comes into effect on August 25, 2025, affecting millions of individuals and businesses that rely on international shipping. The move follows the US administration’s Executive Order No. 14324, issued on July 30, 2025, which withdraws the duty-free de minimis exemption for imported goods valued up to $800. As a result, all goods—except for letters, documents, and gifts up to $100—will now be subject to US customs duties.

Key Details:

Suspension Date: August 25, 2025
Services Halted: All postal articles to the US except letters, documents, and gifts up to $100
Reason: Uncertainty over new US customs duty collection procedures and lack of operational readiness among air carriers
Refunds: Customers with undeliverable packages can apply for refunds

What Triggered the Suspension?

The US government’s new rules, effective August 29, 2025, end the practice of allowing most goods under $800 to enter duty-free. Under the International Emergency Economic Power Act (IEEPA), all postal shipments to the US will now attract customs duties, except for gift parcels worth up to $100.

The US Customs and Border Protection (CBP) has tasked “qualified parties”—including transport carriers and authorized agents—with collecting and remitting these duties. However, the CBP has not finalized the guidelines for approving these parties or for establishing the necessary duty collection systems, leading to widespread operational uncertainty.

Industry and International Response

Due to the lack of clear processes, US-bound air carriers have refused to accept postal consignments from India after August 25, citing both operational and technical challenges. Major international postal operators, including Deutsche Post and DHL, have also announced similar suspensions of standard business parcels to the US.

“The Department of Posts deeply regrets the inconvenience caused to customers and assures that all possible measures are being undertaken to resume full services to the USA at the earliest,” stated an official communication from India Post.

Comparison Table: What Is and Isn’t Allowed

Category	Allowed After Aug 25?	Duty-Free Status (US)
Letters/Documents	Yes	Yes
Gifts ≤ $100	Yes	Yes
Gifts > $100	No	No
Parcels (non-gift)	No	No
Commercial Shipments	No	No

Background and Broader Context

The de minimis exemption has long facilitated the smooth flow of low-value goods between India and the US. Its removal is part of a broader US effort to tighten customs enforcement and increase tariff collections. The lack of clarity on how duties will be collected and which parties are authorized to do so has created a bottleneck, prompting India and several European postal operators to pause services until further notice.

Frequently Asked Questions

What happens to parcels already sent but not yet delivered to the US?
Such parcels will not be dispatched, and customers can apply for a refund of postage.

Will courier services like FedEx or UPS be affected by this suspension?
The suspension specifically targets postal services; private couriers may have separate arrangements but could face similar customs challenges.

Is there an expected timeline for resumption of full postal services?
No official timeline has been provided; restoration depends on further US clarifications and operational readiness.

Are other countries also suspending postal services to the US?
Yes, several European postal operators, including Deutsche Post and DHL, have announced similar suspensions.

Can Indian businesses use alternative shipping methods to send goods to the US?
Businesses may explore private logistics providers, but all shipments will be subject to the new US customs duties and procedures.

Key Takeaways

India’s suspension of most postal services to the US from August 25, 2025, underscores the far-reaching impact of changing US customs regulations and the complexities of international logistics. Until US authorities clarify duty collection mechanisms, only letters, documents, and gifts under $100 will be accepted. Affected customers should seek refunds for undeliverable parcels and monitor updates from India Post and US Customs for further developments.