Communications Ministry Seeks Extension On US Parcel Duty Policy

The Ministry of Communications has approached the Commerce Ministry and the Ministry of External Affairs seeking more time for implementing the new regulations announced by the US government that change how goods are shipped into the country.

India Post, a department under the Ministry of Communications, cited operational and technical challenges in adapting to the new system, which comes into effect from Aug. 29, 2025.

The US government has decided to scrap the $800 duty-free limit, meaning all incoming parcels — regardless of value — will now be subject to customs duties. Airlines have been directed to collect these duties before shipping the parcels.

However, major carriers including Air India, Lufthansa Cargo, and Swiss Cargo have refused to carry US-bound mail under the new rule, saying they are not equipped to handle customs duty collection.

In response, India Post has suspended all parcel services to the US starting Aug. 25. Only letters, documents, and gift items worth up to $100 will be accepted for delivery.