India Post suspends most US-bound parcels from Aug 25, 2025

(UNITED STATES) India Post has paused most packages to the United States 🇺🇸 starting August 25, 2025, after a sweeping change in U.S. customs policy removed the long-standing duty-free entry for low-value goods. The halt covers almost all parcels and merchandise bound for the U.S., with only three exceptions that will still move: letters, documents, and gift items valued at USD 100 or less.

India Post said the decision follows Executive Order No. 14324, issued on July 30, 2025, which ends the previous duty-free “de minimis” threshold of USD 800 and brings nearly all inbound parcels under customs duty rules by August 29, 2025. The new regime is tied to the International Emergency Economic Power Act (IEEPA). Postal operators and air carriers say they do not yet have a working system to collect and remit these duties, so they cannot accept most U.S.-bound shipments after August 25.

The Department of Posts has told customers they can seek refunds on undeliverable items and that it is working with U.S. agencies to restore full service as soon as possible. The suspension has no fixed end date. India’s Ministry of Communications has confirmed ongoing coordination with U.S. Customs and Border Protection and the U.S. Postal Service. Until the U.S. government finalizes how duties will be calculated, collected, and transmitted on postal consignments, India Post and many foreign operators say they must hold back most parcels heading to American addresses.

The policy shift also affects other national posts in Europe and elsewhere. Several are limiting or suspending U.S.-bound parcels, citing the same operational gap: there is no agreed process to charge customers for duties at the point of mailing and send those funds to U.S. authorities. According to internal estimates cited by Indian postal officials, India Post typically moves around three tonnes of cargo to the U.S. daily, or about 100–200 tonnes a month. That flow is now interrupted. For families who depend on small packages and for exporters who rely on low-value shipments, the timing is painful, landing just ahead of late-summer and fall shopping sprees.

Policy changes: what changed and why it matters

At the heart of the disruption is Executive Order No. 14324, a move by the Trump administration that rewrites how small parcels enter the U.S. The order ends the prior USD 800 duty-free threshold—the “de minimis” rule—under which goods below that value could arrive with minimal paperwork and no customs duties. As of August 29, 2025, almost every inbound parcel will be subject to duties. Only gift items worth USD 100 or less are excluded from the new charges. Letters and documents also continue without change.

The order relies on authorities linked to the International Emergency Economic Power Act (IEEPA). Under that framework, the U.S. government can set duty measures that apply to a wide range of imports. For postal operators, this means every item that once slipped in without duty may now need a duty assessment before it is handed over to the U.S. Postal Service for last-mile delivery.

The main operational challenge is not merely the duty itself but the practical steps required:

• Collecting duty from the sender at the origin counter.
• Remitting funds to U.S. authorities.
• Documenting and matching duty payments to individual parcels across multiple handoffs.

U.S. Customs and Border Protection (CBP) posted initial guidance on August 15, 2025, but foreign posts say key pieces remain unsettled. Operators report they lack:

• A defined method to act as “qualified parties” for duty collection.
• A billing and remittance channel to forward funds to the U.S.
• Data and tracking linkage to match duties to parcels per U.S. requirements.

Without these elements, posts argue they cannot accept packages, take money from the sender, and guarantee delivery on the U.S. side with duties already paid. In effect, the whole chain—from acceptance at a post office counter in India to scanning at a U.S. inbound mail center—needs new steps and data fields.

“India Post has framed its move as a forced pause,” officials say, pointing to the absence of an agreed collection process as the key barrier.

How broad is the response among postal operators?

The wider postal network echoes the same concerns. European operators and others that handle millions of cross-border packages each month have also pulled back on U.S.-bound items. Their reasons:

• The U.S. shift was rapid and affects every product line.
• It requires IT and financial integration that cannot be built in weeks.
• There is a risk of stranded loads at U.S. ports if duties are not properly collected and matched.

Analysts say the move breaks with the long arc of e-commerce growth nurtured by the de minimis rule, which allowed small traders and marketplace sellers to reach U.S. buyers quickly and at low cost. The Global Trade Research Initiative (GTRI) notes that exporters who depended on low-value shipments are now exposed to higher costs and delays.

While duty tables and collection channels remain pending, some policy watchers expect the U.S. to apply either ad valorem (percentage-based) duties or flat fees per item that vary by country or product type. GTRI mentions flat fees such as USD 80, USD 160, or USD 200 per parcel have been discussed, but nothing is final. For now, the only clear safe lane is for letters, documents, and gifts under USD 100.

For official updates on customs policy and trade entries, readers can review CBP’s resources on the U.S. government website at https://www.cbp.gov.

Immediate impact on mailers and exporters

The immediate effect is simple and stark: most packages from India to the U.S. are not moving through the public post. The exceptions are narrow:

• Still accepted: Letters, documents, and gift items valued up to USD 100.
• Suspended: All other parcels and merchandise, including commercial samples and goods over USD 100.

Key dates and mechanics:

• India Post suspension begins August 25, 2025.
• U.S. duty regime begins August 29, 2025.
• Air carriers will not lift mail bags without a duty solution, so postal dispatchers stopped booking qualifying parcels to avoid stranded loads.

Consequences for common users and businesses:

• Individuals: Sending parcels for personal purchases or care packages is largely blocked unless items qualify as gifts under USD 100.
• Small exporters: The removal of the USD 800 threshold means every parcel may face duty and processing steps that raise costs and delay deliveries.
• Private couriers: They often charge more; some may pause services or await a clearer duty collection model.
• India Post scale: At about three tonnes a day to the U.S., the pause affects many sender types—from artisans and micro-sellers to firms mailing samples or parts.

Refunds and handling for already-lodged parcels:

• Refunds are available for undeliverable items. India Post advises customers to contact local post offices or customer service desks to request postage refunds.
• Parcels accepted before August 25 and still in transit may be returned or delayed if they cannot be cleared under the new rules by August 29.
• Customers should expect verification steps for refunds and to confirm parcel category and destination.

The U.S. government’s rationale is enforcement-based: CBP and policymakers argue the de minimis channel was abused, including for illicit trade. Their response—ending the de minimis threshold through Executive Order No. 14324—sweeps in all postal parcels and creates a single duty gate for nearly every item. The problem: the practical collection tools for that gate are not yet available.

Operational path to restoring service

To resume normal service, three pieces must align:

1. CBP must publish a clear method for postal operators to become authorized collectors of duty for U.S.-bound mail.
2. Operators must upgrade IT systems to:
   • Calculate duties,
   • Capture payments,
   • Tie payments to each parcel’s tracking number.
3. Air carriers and partner posts must agree on data formats and handoff rules so duty information follows the item from acceptance to delivery.

India Post says it is talking with CBP and USPS about these steps and will resume bookings as soon as there is an agreed way to collect and remit duty. The Ministry of Communications describes the suspension as temporary but gives no fixed timeline.

CBP’s August 15, 2025 notice provides a starting point but does not yet name “qualified parties” or explain how foreign operators will post funds, reconcile accounts, and file entries for millions of small parcels. Rolling out ad-hoc systems risks mischarging customers or leaving funds unmatched to shipments, which would create chaos at U.S. ports and damage trust in cross-border mail.

Possible duty models and practicalities:

• Ad valorem duties (percentage-based) or flat fees per item.
• GTRI notes flat charges per item (USD 80, USD 160, USD 200) have been discussed; these are easier to collect at point of sale but still require dispute and returns handling.
• If a flat-fee route is chosen, operators could embed a duty calculator in point-of-sale systems and issue receipts with tracking numbers and remittance IDs.

India Post has suggested temporary tie-ups with private couriers as a possible bridge, but no such arrangement is in place.

What mailers should do now

Immediate to-do list for affected senders:

1. Check whether your item fits one of the three lanes still open: letters, documents, or gift items up to USD 100.
2. If not, wait to send and follow India Post updates on service restoration.
3. If you already lodged a suspended item, ask your local post office about refunds of postage.
4. If you sell to U.S. buyers, pause listings that rely on postal parcels until India Post announces a clear restart plan under the new duty regime.

Additional practical notes:

• Letters and documents remain accepted—use this channel for papers such as contracts, transcripts, or legal documents.
• Gift items at or below USD 100 should be clearly labeled as gifts and accompanied by proof of value if possible.
• Keep documentation and receipts handy to simplify any future duty/misdeclaration queries.

Wider implications and outlook

The policy logic behind Executive Order No. 14324—removing the USD 800 duty-free channel—marks a sharp turn in U.S. trade enforcement. While the move aims to curb misuse of the de minimis route, the speed of the change exposed a gap between policy intent and operational readiness across the global postal network.

What could happen next:

• If CBP finalizes a simple, adoptable method quickly, services could return within weeks.
• If the solution is complex or requires country-by-country agreements, the pause could last longer.
• The episode may reshape cross-border e-commerce: senders will have to factor in duties previously absent from prices, and some may reconsider public post versus other channels.

As of August 23, 2025, the confirmed status is:

• Suspension of most U.S. parcels from India starts August 25, 2025.
• New duty regime takes effect August 29, 2025.
• Only letters, documents, and gifts valued at USD 100 or less continue to move through India Post under standard terms.

India Post says it will update customers as talks with U.S. agencies progress. The Department of Posts has asked for patience, emphasizing it will not take money for duties without a sure way to pass those funds accurately to U.S. authorities. Postal leaders aim to move quickly once they have certainty.

Industry watchers will continue to monitor CBP announcements and operator notices. For official U.S. customs updates, see CBP’s public pages at https://www.cbp.gov. For senders in India, local post offices are the first point of contact for refunds and guidance on what falls within the exceptions.

The missing link is a working, agreed duty collection path that fits the daily flow of millions of small parcels. When that link is in place, postal bags to the U.S. should begin to move again.