India Post Stops Sending Packages to the U.S. Starting August 25 Due to New American Duty Rules

New Delhi, August 23, 2025 — India Post has declared a big halt on most mail services to the United States beginning August 25, 2025, after the U.S. government introduced a new customs duty system. This suspension will impact millions of people, small businesses, and exporters who depend on affordable international shipping to send items to the U.S.

Why Is There a Suspension?

The interruption follows the United States issuing Executive Order No. 14324 on July 30, 2025, under the International Emergency Economic Powers Act (IEEPA). This order removes the long-standing “de minimis” duty exemption, which used to let goods worth under USD 800 enter the country without any duty.

With the new rules, every international package coming into the U.S. will have customs duty applied, no matter the value. Only letters, documents, and low-value gifts are free from this.

Although U.S. Customs and Border Protection (CBP) has provided general guidelines, important details—like who is responsible for collecting and paying duties—are still not clear. Air carriers have mentioned they cannot take packages heading to the U.S. until these rules are explained.

Because of this, India Post has temporarily stopped accepting most packages going to the U.S. from August 25 to prevent shipments from getting stuck in transit.

What Can Still Be Sent?

Starting August 25, only these items will be allowed for delivery to the U.S. through India Post:

Letters and documents.

Gift packages worth up to USD 100.

All other types, including business shipments, e-commerce deliveries, and gifts over USD 100, will not be processed until further notice.

Refunds for Booked Shipments

India Post has announced that customers who booked parcels surpassing the new limits are eligible for postage charge refunds. The Department of Posts expressed its regrets regarding the disruptions and reassured the public that efforts are in progress to restore full services once U.S. procedures are clarified.

Impact on Individuals and Businesses

The suspension is anticipated to significantly inconvenience:

Families and students who regularly send care packages to the U.S.

Small businesses and exporters utilizing India Post’s budget-friendly parcel services.

E-commerce vendors reliant on postal networks to reach customers in the U.S.

While private couriers might still operate, they will do so at much higher costs, making the suspension particularly difficult for small exporters.

Timeline of Events

Date:-                                              Event:-                                                               

July 30:-                 The U.S. signs Executive Order 14324, which gets rid with the USD 800 duty-free limit.                                                                                         

August 15 :-      Critical logistics are left ambiguous by the partial guidelines published by U.S. Customs.

August 25 :-        India Post has ceased the shipment of the majority of packages to the  United States.(only letters and presents worth less than $100 are allowed).

 August 29 :-       The new U.S. customs duty framework becomes fully implemented.         

Why the U.S. Changed Its Rules

The U.S. government’s move to eliminate the USD 800 exemption is viewed as part of a broader trade and revenue initiative. The exemption had faced criticism for promoting low-value imports and evading duties. By enforcing duties on all parcels, Washington seeks to:

– Increase customs revenue.

– Safeguard domestic manufacturers from low-cost imports.

– Enhance oversight of international trading activities.

However, the absence of clarity on duty collection for postal shipments has led numerous countries, including India, to rush for adjustments.

What Next?

Officials from India Post have indicated that the suspension is temporary and will remain until U.S. authorities provide explicit guidance regarding customs duties for postal items. Anticipated negotiations and clarifications are expected in the near future.

In the interim, customers preparing to send parcels to the U.S. should consider alternative logistics options or limit shipments to letters and small gifts.

Summary

India Post will suspend most postal services destined for the U.S. starting August 25, 2025.

Only letters, documents, and gifts valued at up to USD 100 will be accepted.

This suspension follows a new U.S. executive order that abolishes the USD 800 duty exemption.

Customers with ineligible bookings can request refunds.

Families, students, exporters, and small businesses can expect challenges until there is operational clarity.