The Indian Postal Department has announced that it will temporarily stop booking all types of postal goods bound for the United States starting August 25, 2025. This move comes as a response to new tariffs imposed by the US administration under Executive Order No. 14324, issued on July 30, 2025.
End of Duty-Free Exemption in the US
Until now, items valued up to $800 entering the US were exempt from customs duty. However, under the new order, this exemption will end on August 29, 2025. From then on, all goods sent to the US via post—regardless of their price—will attract customs duty, calculated as per country-specific tariff rules under the International Emergency Economic Powers Act (IEEPA).
Impact on Indian Senders and Recipients
This decision will directly impact individuals and businesses in India who rely on postal services to send goods to the US. Small exporters, students, families sending parcels, and e-commerce sellers are expected to be most affected.
- Increased costs: With duties applicable on all parcels, consumers in the US may need to pay more for Indian goods.
- Operational delays: Since the Indian Postal Department has suspended bookings temporarily, exporters will have to look for alternative private courier services.
- Limited exemptions: Only gift parcels valued at $100 or less will remain duty-free under the new rules.
What Happens Next?
The Indian Postal Department clarified that this halt is temporary and will be reviewed based on how the US government proceeds with its tariff regime. If Washington revises its stance, India may resume postal services with updated compliance mechanisms.
For now, those sending goods from India to the US must be prepared for higher costs, more paperwork, and possible delays. Businesses may also have to rework their pricing strategies to stay competitive in the US market.
