India suspended all postal services to the United States on Saturday — citing recent tariff policy updates made by President Donald Trump. The temporary pause will go into effect from August 25 as an executive order eliminating the de minimis exemption comes into effect. Trump had scrapped the tax rule exempting entry of goods valued under $800 without customs duties and other taxes — part of a bid to combat unfair trade practices and tariff evasion.
“All international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act tariff framework. However, gift items up to the value of $100 shall continue to remain exempt from duties,” the Department of Posts noted in an official communique.
The US Customs and Border Protection will soon be required to collect and remit duties on postal shipments in accordance with the executive order. Indian authorities however noted that several critical details remained missing about the updated process. The PIB update added that US-bound air carriers had consequently expressed their inability to accept postal consignments after August 25 due to a “lack of operational and technical readiness”.
‘Temporary suspension of all bookings’
According to the update shared by government, bookings have been temporarily suspended for all types of postal articles destined for the US. The change will take effect from August 25 and apply to all items except letters/documents and gift items up to $100 in value.
“The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalize services at the earliest possible opportunity. Customers who have already booked articles that cannot be dispatched to the USA due to these circumstances may seek a refund of postage,” the PIB update said.
What is the de minimis exemption?
The de minimis exemption is a tariff and tax rule that had so far allowed shipments entering the United States to be exempt from customs duties and taxes if their value was below a certain threshold. The de minimis threshold in the US was set at $800 per person per day — meaning goods valued under $800 could enter the country duty-free and without the need for detailed customs reporting.