India Resumes US Postal Services After Implementing New Customs Duty Collection System

New Delhi: India is set to reinstate all postal services to the United States starting Wednesday following the implementation of systems designed to collect duties upfront, according to an announcement from the Department of Posts. This development ends a suspension that lasted nearly two months, which was initiated by new U.S. import regulations.

The suspension of postal shipments to the United States occurred in August after the U.S. administration enacted an executive order that eliminated the "de minimis" exemption. This exemption had previously allowed commercial shipments of low value to enter the country without being subject to tariffs.

This restoration of services comes just before a scheduled meeting between Indian and U.S. trade officials in Washington later this week. The meeting follows the United States' recent decision to increase tariffs—up to 50%—on certain Indian products in response to India's Russian oil purchases.

Under the executive order signed by U.S. President Donald Trump, packages valued at or below $800 sent to the United States, including those through international postal networks, became subject to "all applicable duties" starting August 29.

This regulatory change required India and other countries to establish systems for collecting and remitting U.S. customs duties in advance, in compliance with new regulations from U.S. Customs and Border Protection.

According to the postal department statement, customs duty on postal shipments from India to the U.S. will now be charged at a flat rate of 50% of the package's declared value in India.

This initiative aims to provide support to exporters, including small businesses, artisans, small traders, and e-commerce ventures, by making international shipping more predictable and affordable.

Between 2015 and 2024, the annual volume of "de minimis" shipments entering the United States increased dramatically from 134 million to over 1.36 billion. Currently, U.S. Customs processes more than 4 million "de minimis" shipments daily.