The Crossbill News Desk
India Post has announced the temporary suspension of all parcel services to the United States starting August 25, citing confusion over new American import duties.
The move, confirmed on Saturday (August 23), comes just days before the Donald Trump administration’s revised customs regime takes effect.
According to a report in Hindustan Times, the suspension will apply to all parcels regardless of value, leaving only letters, documents, and gift items worth up to $100 eligible for delivery to the US.
The disruption follows Washington’s decision last month to scrap the global “de minimis” rule, which had allowed goods valued under $800 to enter the country with minimal paperwork.
Beginning August 29, every parcel shipped to the US will attract customs duties under the new executive order signed on July 30. The only exemption will be for small gifts valued below $100.
However, Indian postal authorities say the US government has not clarified who will handle duty collection on incoming parcels.
“We don’t have any agreement with any agency who can accept, collect the duty and pay it. Airlines have also not agreed, and the ‘qualified parties’ that the US government talks about have not yet been finalised,” said L.K. Dash, deputy director general (international relations and global business) at the Department of Posts.
The executive order specifies that airlines or other approved agencies must collect and remit the duties, but American authorities have yet to explain how the system will operate.
The impact on trade flows is expected to be significant. India Post typically dispatches around 3 tonnes of cargo daily to the US, amounting to between 100 and 200 tonnes a month.
“This will be a major impact on exports. Until we tide over the issues, businesses and individuals will be badly hit. We have no idea how long this will last,” Dash said.
Officials have raised the issue with US Customs and Border Protection and informed India’s commerce and external affairs ministries, which are responsible for engaging with their American counterparts.
The move, confirmed on Saturday (August 23), comes just days before the Donald Trump administration’s revised customs regime takes effect.
According to a report in Hindustan Times, the suspension will apply to all parcels regardless of value, leaving only letters, documents, and gift items worth up to $100 eligible for delivery to the US.
The disruption follows Washington’s decision last month to scrap the global “de minimis” rule, which had allowed goods valued under $800 to enter the country with minimal paperwork.
Beginning August 29, every parcel shipped to the US will attract customs duties under the new executive order signed on July 30. The only exemption will be for small gifts valued below $100.
However, Indian postal authorities say the US government has not clarified who will handle duty collection on incoming parcels.
“We don’t have any agreement with any agency who can accept, collect the duty and pay it. Airlines have also not agreed, and the ‘qualified parties’ that the US government talks about have not yet been finalised,” said L.K. Dash, deputy director general (international relations and global business) at the Department of Posts.
The executive order specifies that airlines or other approved agencies must collect and remit the duties, but American authorities have yet to explain how the system will operate.
The impact on trade flows is expected to be significant. India Post typically dispatches around 3 tonnes of cargo daily to the US, amounting to between 100 and 200 tonnes a month.
“This will be a major impact on exports. Until we tide over the issues, businesses and individuals will be badly hit. We have no idea how long this will last,” Dash said.
Officials have raised the issue with US Customs and Border Protection and informed India’s commerce and external affairs ministries, which are responsible for engaging with their American counterparts.
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