India Post Resumes International Postal Services to the United States
India Post has recently announced the resumption of all categories of international postal services to the United States after a temporary suspension that began in late August. This mission resumes amid significant regulatory changes instituted by the US Customs, which are designed to modernize their customs duty framework.
Background of the Suspension
The disruption in services originated from an executive order issued by the US Administration on July 30, which eliminated the duty-free exemption previously applicable to imports valued up to USD 800. Effective August 29, all postal shipments to the U.S., irrespective of their monetary value, are now subject to customs duties under the International Emergency Economic Powers Act (IEEPA). However, there remains an exemption for gift items, capped at USD 100.
This regulatory shift meant that the logistics companies and airlines were unable to continue carrying postal consignments to the US past August 25, as the systems and processes for duty collection were not yet in place. Consequently, the Department of Posts had to take the precautionary step of suspending most international bookings to the U.S., restricting services primarily to letters and documents.
The New Delivery Duty Paid Mechanism
In response to these regulatory changes and following consultations with US Customs and Border Protection (CBP), India Post has introduced a new Delivery Duty Paid (DDP) mechanism. This innovative system was put to the test in operational trials in the Delhi and Maharashtra postal circles before being rolled out nationwide.
Under the DDP model, all applicable customs duties are collected upfront at the time of booking in India. This payment is then directly remitted to US authorities, ensuring that India Post fully complies with the revised import policy. Importantly, this streamlined process is expected to expedite customs clearance and delivery upon arrival in the United States.
Customs Duties Overview
According to the newly updated guidelines, postal shipments from India are subject to a flat 50 percent customs duty based on the declared Free on Board (FOB) value. Unlike commercial or courier shipments, however, postal articles are exempt from any base or product-specific duties. This presents a considerable cost advantage for Indian exporters, making it economically feasible for them to engage in international trade.
Moreover, the Department of Posts has assured stakeholders that no extra charges will be levied for the DDP processing or the involvement of qualified parties. Furthermore, existing postal tariffs will remain unchanged, making it easier for businesses to navigate the new landscape.
Benefits for Small Businesses and E-commerce
The resumption of services is particularly beneficial for micro, small, and medium enterprises (MSMEs), artisans, traders, and e-commerce exporters. These sectors play a crucial role in India’s economy and have often faced challenges in accessing international markets. This new compliant and cost-effective logistics solution will allow them to once again ship goods to the United States seamlessly.
With the rollback of restrictions, customers can now freely book services such as EMS (Express Mail Service), air parcels, registered letters, and tracked packets for delivery to the U.S. This can be done through any post office, International Business Centre, or Dak Ghar Niryat Kendra.
Final Thoughts
India Post’s dedicated efforts to adapt to changing international regulations showcase its commitment to facilitating smooth international trade. By implementing the DDP mechanism and resuming a comprehensive range of postal services, India Post is not only ensuring compliance with U.S. laws but also fostering new growth opportunities for small businesses and exporters across India.