Why has the Department of Posts suspended all postal services to the US?

Click to start listening
Why has the Department of Posts suspended all postal services to the US?

Synopsis

In a significant move, the Department of Posts has completely ceased all postal services to the United States, affecting items valued up to $100. This change comes amidst shifting regulations and operational challenges, raising questions about the future of international mail and e-commerce.

Key Takeaways

  • All postal services to the US are suspended.
  • Items valued up to $100 are included in the suspension.
  • Regulatory changes have prompted this decision.
  • Disruptions may last about a month.
  • E-commerce companies are reviewing their pricing strategies.

New Delhi, Aug 31 (NationPress) The Department of Posts (DoP) has halted all forms of postal items, encompassing letters, documents, and gifts valued up to $100, destined for the United States.

Previously, the DoP had announced a temporary pause on the booking of postal articles, with the exception of letters, documents, and gifts within the $100 limit.

“Due to the current incapacity of carriers to transport mail to the US and ambiguous regulatory frameworks, the responsible authority has opted to fully suspend all forms of mail to the USA, which includes letters/documents and gifts valued at up to $100,” stated the Department.

The Department of Posts acknowledged the Executive Order issued by the US government on July 30, 2025, which revoked the “duty-free de minimis exemption” for items valued under $800, effective from August 29, 2025.

As a result, all international postal shipments heading to the US, irrespective of their value, will now incur customs duties under the International Emergency Economic Power Act (IEEPA) tariff guidelines.

Key exports from India, such as apparel, small carpets, gems, wellness products, handicrafts, electronics, and footwear, are typically sent through e-commerce platforms or shipped directly to consumers.

“I anticipate a disruption lasting approximately one month due to the removal of the De Minimis Exemption,” remarked Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIRO).

“Currently, e-commerce companies are reassessing their pricing strategies and analyzing the extent of additional costs that US consumers may absorb,” he added.

According to the US Executive Order, transport carriers that deliver items via the international postal network, or other “qualified parties” recognized by the US Customs and Border Protection (CBP), must collect and remit duties on postal shipments.

While the CBP released certain guidelines on August 15, 2025, numerous crucial processes regarding the designation of “qualified parties” and the methods for duty collection remain unspecified.

Consequently, US-bound air carriers expressed their inability to accept postal shipments after August 25, 2025, citing insufficient operational and technical preparedness.

Point of View

I emphasize that the Department of Posts' decision reflects broader regulatory shifts affecting international trade. While this suspension poses challenges, it highlights the importance of adapting to new guidelines to ensure smooth operations in the future. We stand with the nation in navigating these changes.
NationPress
01/09/2025

Frequently Asked Questions

What postal services are suspended to the US?
All postal services, including letters, documents, and gifts valued up to $100, have been suspended by the Department of Posts to the United States.
Why was the suspension implemented?
The suspension was due to carriers' inability to transport mail to the US and the lack of clear regulatory frameworks following changes in duty exemptions.
When will the suspension end?
The duration of the suspension is currently uncertain, but experts suggest a disruption could last about a month.
How will this affect e-commerce?
E-commerce platforms are reassessing their pricing strategies due to potential increased costs for US consumers.
What items are impacted by the new regulations?
All international postal items heading to the US, regardless of their value, will now be subject to customs duties.