New Delhi: India Post announced on Saturday it will temporarily suspend all parcel services to the US from August 25, joining postal operators across Europe in halting shipments due to confusion over new American import duties.
The suspension affects all parcels regardless of value, with only letters, documents and gift items worth up to $100 continuing to be accepted for delivery to the US.
The disruption stems from the Trump administration’s decision last month to scrap the global “de minimis” rule, which previously allowed goods valued under $800 to enter America with minimal paperwork.
The change, effective August 29, means every parcel entering the US will now attract customs duties except small gifts under $100, as per an Executive Order issued on July 30.
“We don’t have any agreement with any agency who can accept, collect the duty and pay it,” said LK Dash, deputy director general (international relations and global business), department of posts. “Airlines have also not agreed, and the ‘qualified parties’ that the US government talks about have not yet been finalised.”
The American order requires airlines or other approved agencies to collect and pay customs duties on parcels, but authorities have not yet explained who these agencies will be or how the duty collection system will function.
{{/usCountry}}The American order requires airlines or other approved agencies to collect and pay customs duties on parcels, but authorities have not yet explained who these agencies will be or how the duty collection system will function.
{{/usCountry}}The disruption will significantly affect trade flows. India Post typically sends an average of 3 tonne of cargo daily to the US, totalling 100 to 200 tonnes monthly.
“This will be a major impact on exports. Until we tide over the issues, businesses and individuals will be badly hit,” Dash noted, adding that the suspension would affect everyone equally.
India Post has reached out to US Customs and Border Protection and escalated the matter to the ministry of commerce and ministry of external affairs, as they handle counterpart discussions with American authorities.
“We have no idea how long this will last,” Dash admitted, confirming the suspension is open-ended.
The postal service has not yet explored temporary tie-ups with private couriers but may begin such discussions soon. Customers who have already booked parcels that cannot be dispatched will be eligible for refunds.
A retired senior Department of Posts official, speaking anonymously, described the situation as “a setback for small exporters and e-commerce sellers till the issue is resolved.”
The uncertainty has triggered a domino effect across international postal services. Czech Republic suspended US goods shipments from Thursday, while Austria’s post provider stopped accepting American-bound packages after August 25, citing insufficient information about new customs clearance procedures.
Belgium’s Bpost temporarily halted parcels to the US from Friday, and the UK’s Royal Mail plans to suspend shipments for one to two days next week during its transition to a new duty payment system. Australia Post suspended its transit service deliveries—items from third countries sent through Australia to the US—though regular direct deliveries remain unaffected.
Postal operators in Scandinavia and France have also paused deliveries. Deutsche Post announced it would stop sending standard business parcels to America, joining other European postal groups concerned about the new customs regime.
FedEx told news agency Bloomberg it continues accepting and transporting shipments to the US and remains unaffected by postal operators’ decisions. UPS did not immediately comment.