India has temporarily halted international postal services to the United States starting August 25, 2025, due to a recent policy change by the U.S. government impacting trade and personal communication.
Policy Shift in the United States
Understanding the De Minimis Exemption
De minimis exemption allowed duty-free entry of goods valued at USD 800 or less into the U.S., promoting cross-border trade and reducing customs congestion.
Executive Order 14324
On July 30, 2025, Executive Order 14324 was signed, eliminating the de minimis exemption from August 29, 2025, imposing customs duties on all incoming goods regardless of value.
- All shipments will now face customs duties.
- Gift items valued up to USD 100 are exempt under the new guidelines.
- Temporary special tariffs will apply based on country-specific rates.
The U.S. cited security concerns and misuse of the exemption, especially in drug trafficking, as reasons for this decision.
India’s Response: Postal Suspension
Operational Challenges
India’s Department of Posts faced operational challenges post the U.S. policy shift, including lack of clarity on duty collection, compliance systems, and carrier protocols.
What’s Still Permitted?
Despite the suspension, letters, documents, and gift items under USD 100 are still accepted for the U.S., awaiting further instructions from U.S. authorities.
- Letters and documents
- Gift items up to USD 100 in value
Customer Redressal
The Department allows refunds for undeliverable postal items and ensures active monitoring, promising swift service resumption.
Key Takeaways for Competitive Exams
- Understanding the de minimis exemption and its impact on international trade.
- Awareness of Executive Order 14324 and its implications on customs duties.
- Challenges faced by postal services due to policy changes and operational adjustments.
- The importance of customer redressal and communication during service disruptions.
