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India Halts Postal Services to US from August 25 Over New Customs Rules

The Department of Posts has suspended all mail services to the United States citing upcoming changes in US customs regulations that remove duty-free exemptions 

23-08-2025
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The Department of Posts has announced that all mail services to the United States will be suspended from August 25, citing upcoming changes to American customs regulations.

According to the official statement released on Saturday, starting August 29, every postal consignment sent to the US will attract customs duties under the International Emergency Economic Powers Act (IEEPA) tariff framework, regardless of its value.

The shift follows Executive Order No. 14324, issued on July 30, 2025, which eliminates the duty-free allowance on imports worth up to $800. Only letters, documents, and gifts valued at $100 or less will continue to be exempt from duties.

The new rules come at a time of heightened trade friction between India and the US. Washington recently imposed a 25% tariff on Indian goods, along with another 25% penalty linked to India’s purchase of Russian crude oil.

The executive order requires that US-bound shipments have duties collected and remitted by transport carriers or other entities authorised by US Customs and Border Protection (CBP). However, airlines operating postal cargo have expressed their inability to comply immediately due to technical and operational limitations, forcing a temporary suspension of services.

“The Department of Posts regrets the inconvenience caused to customers and is making every effort to restore operations at the earliest,” the statement noted, adding that the situation is being closely monitored.

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