India Post Resumes International Postal Services to the US
In an important update for international trade and communication, India Post has announced the resumption of all categories of international postal services to the United States. This comes after a temporary suspension that began in late August, triggered by significant changes in US customs regulations. For businesses and individuals alike, this marks a critical moment in the reinvigoration of cross-border logistics.
The Background of the Disruption
The disruption originated from an executive order issued by the US Administration on July 30, which reorganized the customs framework governing, among other things, incoming postal shipments. Previously, there had been a duty-free exemption for imports valued up to USD 800. However, under the newly implemented rules that took effect on August 29, all postal shipments to the US, irrespective of their declared value, became subject to customs duties as delineated by the International Emergency Economic Powers Act (IEEPA). The only exception remains for gift items valued up to USD 100, which continue to enjoy a duty exemption.
Impact of New Regulations
This customs overhaul came with significant implications for international shipping practices. The order mandated that only international carriers and “qualified parties” approved by US Customs and Border Protection (CBP) could collect and remit these duties. As such, airlines were not equipped to process postal consignments post-August 25, leading India Post to suspend the booking for the majority of articles sent to the United States. The only services permitted during this suspension were letters, documents, and eligible gift items, creating a bottleneck for many exporters.
New Mechanism Introduced for Resumption of Services
To navigate these regulations and restore services, India Post has rolled out an innovative Delivery Duty Paid (DDP) mechanism in collaboration with CBP-approved qualified parties. This model underwent successful operational trials in both the Delhi and Maharashtra postal circles, and is now being implemented across the nation. Under the DDP system, customs duties are collected upfront at the time of booking in India, directly remitting them to US authorities. This step not only ensures compliance with the revised import policies but also facilitates quicker customs clearance and delivery once the items arrive in the United States.
Understanding the Cost Structure
The updated guidelines specify that a flat customs duty of 50 percent will be applied to the declared Free on Board (FOB) value of postal shipments originating from India. Notably, unlike commercial or courier shipments, postal articles avoid additional base or product-specific duties, thereby presenting a distinct cost advantage for Indian exporters. The Department of Posts has assured stakeholders that there will be no extra charges for facilitating DDP processing or working with qualified parties, and that existing postal tariffs will remain stable.
Beneficiaries of Resumed Services
The resumption of these postal services is expected to herald a new era of opportunity for micro, small, and medium enterprises (MSMEs), artisans, traders, and e-commerce operators. By offering a compliant and cost-effective logistics solution for shipping goods to the United States, myriad businesses can now safely navigate the complexities of international trade. Customers can once again book various services, including Express Mail Service (EMS), air parcels, registered letters, and packets, along with tracked packets for delivery to the US through any post office, International Business Centre, or Dak Ghar Niryat Kendra.