India Resumes Postal Services to US After Two-Month Suspension Amid Regulatory Changes
New Delhi:
After a two-month suspension, India Post has resumed all categories of international postal services to the United States, restoring a vital communication and trade link that had been disrupted since late August. The temporary halt followed major changes in US customs regulations introduced under a new executive order issued by the US Administration.
Suspension Triggered by US Policy Shift
The services were suspended on August 22, shortly before the enforcement of a July 30 Executive Order by the US government that withdrew the de minimis exemption for postal imports valued up to USD 800. Under the revised policy, effective August 29, all postal shipments to the US—regardless of their value—are now subject to customs duties under the International Emergency Economic Powers Act (IEEPA). Only gift items valued below USD 100 remain duty-free.
The order further specified that only international carriers and “qualified parties” approved by US Customs and Border Protection (CBP) could collect and remit these duties. Since postal administrations were not immediately recognized as qualified entities, airlines expressed their inability to carry postal consignments beyond August 25, prompting India Post to suspend booking of most categories of mail except letters, documents, and eligible gifts.
New DDP System Introduced for Compliance
To align with the new US import framework and ensure regulatory compliance, India Post has introduced a Delivery Duty Paid (DDP) mechanism. The system has been developed in coordination with CBP-approved qualified parties and was successfully tested in Delhi and Maharashtra postal circles before being rolled out nationwide.
Under the DDP model, all applicable customs duties are collected upfront at the time of booking in India. The duties are then directly remitted to US authorities, ensuring seamless customs clearance and faster delivery once the shipments reach the United States.
Officials explained that this model eliminates potential delays and ensures full compliance with US import policies, making the postal channel more predictable and transparent for exporters and customers alike.
New Customs Rates and Cost Advantages
As per the revised structure, a flat 50% customs duty is now applied to the declared Free on Board (FOB) value of postal shipments sent from India to the US. However, unlike commercial courier services, postal consignments are exempt from product-specific or base duties, giving Indian exporters a competitive cost advantage.
Importantly, India Post clarified that no additional charges will be levied for facilitating DDP processing or for engaging with qualified parties. Existing postal tariffs and booking fees remain unchanged.
Relief for Exporters and Small Businesses
The restoration of postal services is expected to provide a major boost to micro, small, and medium enterprises (MSMEs), artisans, traders, and e-commerce exporters who rely on India Post’s network for shipping affordable goods to US buyers.
Customers can now once again book EMS, air parcels, registered letters and packets, and tracked packets destined for the United States through any post office, International Business Centre (IBC), or Dak Ghar Niryat Kendra (DGNK).
Officials noted that the move not only restores an essential international logistics route but also strengthens India Post’s role as a reliable and compliant channel for cross-border trade amid evolving global trade regulations.
