India Suspends Postal Services to US, Only Letters & Gifts Allowed
The Government of India has taken a major decision, announcing that from August 25, 2025, most postal services to the United States will be suspended. India Post has clarified that for now, only ordinary letters, documents, and gift items valued up to 100 US dollars will be allowed. Parcel and merchandise bookings have been stopped.
Why was this decision taken?
The move comes after the US recently made significant changes to its customs rules. On July 30, 2025, the US administration issued Executive Order No. 14324, ending the long-standing de-minimis exemption of $800. This means that every shipment—whether worth a hundred dollars or a thousand—will now be subject to customs duties and taxes.
This created confusion. While the US decided to remove the exemption, it did not clarify how the duties would be collected. Will the sender’s postal service collect the charges, or will the receiver in the US have to pay? With no clear guidance, India and several other countries immediately suspended parcel services.
Which services will continue, and which are suspended?
India Post has released a detailed list.
- Services to continue: Ordinary letters, documents, and gifts up to a maximum value of $100.
- Services suspended: All types of parcels, merchandise shipments, e-commerce orders, and large non-document consignments.
This means Indian citizens who wish to send medicines, clothes, or household goods to family members in the US will find it nearly impossible, unless they rely on private courier services at significantly higher costs.
Relief for those who booked earlier
India Post has assured that customers who booked parcels to the US before August 25 will receive refunds. A special refund process has already been initiated for such cases.
NRIs and families to be the most affected
The US is home to one of the largest Indian diasporas. Millions of Indian families stay connected through letters and parcels every month. Several groups will be directly impacted by this suspension—
- Students: Indian students in the US often rely on shipments of lentils, spices, books, and other essentials from home. This will now stop.
- Small businesses: The US has long been a major market for Indian handicrafts, textiles, and decorative items. Small e-commerce sellers will be hit hardest.
- Families and relatives: Families traditionally send useful items and gifts during festivals and special occasions. That option is now restricted to only small gifts.
A global impact: Not just India, the whole world is affected
This disruption is not unique to India. Several European countries have also suspended parcel services to the US. Airlines and cargo companies have likewise stopped accepting non-document shipments to the US. This clearly shows how the lack of clarity in regulations is disturbing global supply chains.
Trade and diplomatic dimensions
Though the suspension is rooted in technical and customs issues, experts are also linking it to India-US relations.
- Oil import dispute: The US has been pushing India to reduce imports from Iran and Russia, but India has continued to prioritise its own energy needs.
- E-commerce and data localisation: The US has repeatedly raised objections to India’s strict e-commerce policies.
- Foreign policy stance: Recently, External Affairs Minister S. Jaishankar reiterated that India takes decisions based on national interests. The postal suspension appears to follow the same principle.
What do experts say?
Trade analysts argue that scrapping the de-minimis exemption is not just about tax collection—it also undermines the competitiveness of small exporters and developing nations. While large corporations can easily comply, smaller businesses may be forced out of the market.
Indian experts believe that unless the US provides clarity soon, customers will be left at the mercy of private courier companies and their high rates, affecting middle-class families the most.
The road ahead
For now, Indian consumers and traders can only wait. If the US announces a clear process for duty collection and sets up the required digital systems, India could resume parcel services. Until then, only letters and gifts can be sent.
Conclusion
This decision is undoubtedly a setback for ordinary consumers, but from a practical perspective, it was necessary. Without clear rules, sending parcels to the US could have caused major losses for both senders and receivers.The suspension is temporary for now, but if it continues, it could hurt not only families but also small-scale trade between India and the US.
The coming weeks will determine whether this postal issue is resolved quickly, or whether people will have to depend solely on letters and limited gifts to maintain their connections.
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