New Delhi, 23 Aug

Postal services to the US have been temporarily suspended, as US-bound air carriers have denied carrying shipments due to a lack of clarity in new norms issued by the American customs department, the Ministry of Communications said on Saturday.

However, services will continue for letters, documents and gift items worth up to USD 100.

Under an executive order issued by the US administration on 30 July this year, goods valued at over USD 100 will be subject to customs duties in America with effect from 29 August onwards.

According to the order, transport carriers delivering shipments through the international postal network, or other "qualified parties" approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments.

"While CBP issued certain guidelines on 15th August, 2025, several critical processes relating to the designation of 'qualified parties' and mechanisms for duty collection and remittance remain undefined.

"Consequently, US-bound air carriers have expressed their inability to accept postal consignments after 25th August, 2025, citing lack of operational and technical readiness," a statement from the ministry said.

Following the development, the "Department of Posts has decided to temporarily suspend booking of all types of postal articles", destined for the US with effect from 25 August, except letters/documents and gift items up to USD 100 in value, it said.

"These exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from CBP and USPS," the statement said.

The Department of Posts is offering refunds of postage to customers whose articles could not be dispatched.

"Customers who have already booked articles that cannot be dispatched to the USA due to these circumstances may seek a refund of postage. 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," the statement noted.

Economic think tank GTRI founder Ajay Srivastava said under the new regime rolled out by the US, all inbound parcels will attract tariffs, but international postal shipments remain duty-free until US Customs and Border Protection (CBP) establishes a new entry process and publishes it.

After the implementation of new norms, shipments will face one of two duty structures - ad valorem duty based on the effective tariff rate under IEEPA, or a flat rate duty of USD 80, USD 160, or USD 200 per item, depending on the country's tariff bracket.

"The suspension underscores the immediate fallout of Washington's new trade measures, which are expected to disrupt global e-commerce and hit exporters in India and other countries that depended on small-value, duty-free shipping," Srivastava said.