India Post Halts Parcels To US Amid Tariff Uncertainty As Washington Ends $800 Duty-Free Rule

India's Department of Posts has announced a temporary suspension of most postal services to the United States, effective from Aug. 25, in response to new US import regulations mandating advanced electronic customs data and pre-paid duty collection. 

Only letters, documents, and gifts up to $100 will still be accepted. India Post said customers with undelivered parcels will receive refunds and that it is working to restore services. 

The suspension follows US' new executive order, which eliminates the long-standing de minimis exemption allowing duty-free entry for goods valued up to $800. 

This implies that all international postal items to the US, regardless of their value, will now be subject to customs duties, with the exception of gift items up to $100. According to the new US regulations, carriers are now required to collect and pay these duties.

The US Customs and Border Protection has not yet provided clear guidelines on key processes, such as the designation of qualified parties and the mechanisms for duty collection.

The government has said that US-bound carriers have expressed their inability to carry postal shipments in the absence of fully defined mechanisms for duty collections and data exchange and that they're working to restore services at earliest.