Due to new US customs duty regulations, the Indian Postal Department has temporarily suspended all parcel bookings to the United States starting August 25, 2025. Only letters and gift items worth up to $100 will be permitted. Customers will receive refunds for parcels booked prior to this suspension.
India Post: Following new tariff regulations issued by the US administration on July 30, 2025, the Indian Postal Department has temporarily halted all parcel bookings to the USA from August 25, 2025. Currently, only letters, documents, and gift items valued up to $100 can be sent. As part of this decision, refunds will be provided to customers for parcels booked earlier. The department stated that efforts are underway to restore international postal services to normal as soon as possible.
Custom Duty Now Applicable on All Parcels
On July 30, 2025, the US administration issued Executive Order Number 14324. Under this order, the duty-free exemption previously available for goods valued up to $800 will end on August 29, 2025. Now, all postal items destined for the US, regardless of their value, will be subject to customs duty. This duty will be implemented under the International Emergency Economic Powers Act (IEEPA), based on country-specific tariff regulations.
Currently, gift items valued up to $100 are exempt from this duty. Furthermore, letters and documents remain unaffected and can still be sent.
Temporary Suspension of Parcel Service to the US
The Indian Postal Department has decided to temporarily suspend all parcel bookings to the United States. The department has stated that only letters, documents, and gift items with a value of up to $100 will be allowed for shipment. Keeping customer interests in mind, the Postal Department will facilitate refunds for those who have already booked parcels. These customers will receive a refund of their postal charges.
The department stated that it is monitoring the situation with all parties involved and is working to restore services to normal as quickly as possible.
Challenges in the New System
Under the new regulations, transport carriers and “Qualified Parties” authorized by US Customs and Border Protection (CBP) are responsible for collecting and remitting duties for goods sent to the United States via the international postal network.
However, despite the CBP issuing guidelines on August 15, 2025, several questions regarding the appointment of “Qualified Parties” and the duty collection process remain unresolved. As a result, air postal carriers to the United States have expressed their inability to accept postal items after August 25, 2025. Their technical and operational preparations for the new system are not yet complete.
What Facilities Will Customers Get?
Customers who have already booked parcels but are now unable to send them can claim a refund of their postal charges. The Postal Department has expressed regret to customers, stating that the situation is temporary and services will be resumed soon.
The department has also clarified that, for the time being, only letters, documents, and gift items valued up to $100 can be sent to the United States. All other parcels and larger shipments are currently suspended.
Potential Delays and Disruptions in Postal Services
Experts suggest that this US tariff is not only affecting the Indian Postal Department but is also creating a challenging situation for international trade and small businesses. The new duty could directly impact small gifts, documents, and commercial goods sent to the United States.
Due to the tariff and customs regulations, international parcel transport companies will need to make technical and administrative changes. This could lead to delays and temporary disruptions in postal services.
