India's Department of Posts has announced the resumption of all international postal services to the United States, effective October 15, 2025, mere weeks after a abrupt suspension in August due to uncertainties stemming from President Donald Trump's tariff policies. The halt, which affected letters, documents, and gifts valued up to $100, was prompted by the lack of clear regulatory guidelines following Executive Order No. 14324, issued on July 30, 2025. This order eliminated the previous duty-free allowance for imports up to $800, mandating that carriers collect and remit customs duties—a process left undefined, leading to widespread confusion among postal operators worldwide.
The suspension was a reluctant but necessary step, as explained by Deputy Director General (IR&GB) LK Dash in an August interview with Hindustan Times: “We have no other alternative but to suspend. We can’t go on inconveniencing the customers.” Over 25 countries joined India in pausing outbound services to the US, citing ambiguities in transit arrangements and the identity of "approved agencies" for duty collection. Airlines, in particular, refused to transport parcels after August 25, disrupting supply chains for micro, small, and medium enterprises (MSMEs), artisans, and e-commerce sellers who rely on affordable postal routes for cross-border trade.
To resolve the impasse, India Post has rolled out a compliant Delivery Duty Paid (DDP) mechanism, as detailed in a Press Information Bureau release. Under this system, all applicable customs duties are now collected upfront at the point of booking in India and remitted directly to US Customs and Border Protection (CBP) via designated Qualified Parties. This ensures regulatory adherence, expedited customs clearance, and hassle-free delivery without surprise fees or delays. Crucially, postal shipments face a flat 50 percent duty on the declared Free on Board (FOB) value, exempt from additional base or product-specific tariffs that burden courier and commercial consignments.
Also Read: Can India's Swadeshi Apps Outshine Global Tech Giants?
This favorable structure positions India Post as a cost-effective logistics alternative, significantly reducing the financial strain on small traders and exporters. By maintaining unchanged postal tariffs and absorbing no extra fees for DDP facilitation, the service remains accessible for low-value shipments, fostering competitiveness in the global market. The resumption not only restores a vital conduit for personal and commercial mail but also signals smoother bilateral trade logistics amid evolving US protectionist measures.
As services relaunch, stakeholders are encouraged to accurately declare FOB values to prevent processing hiccups. This development underscores India Post's agility in navigating international regulatory shifts, potentially benefiting sectors like artisanal crafts and e-commerce that were stalled by the tariff upheaval. With the festive season approaching, the timely revival promises to reconnect families and businesses across the Indo-US corridor without the shadows of uncertainty.
Also Read: Google CEO briefs PM Modi on first-ever Indian AI hub in Visakhapatnam