India's Post Office Joins Global Peers in Suspending US Parcel Services: Here's Why

The Union government’s Department of Posts on Saturday announced that it is temporarily suspending parcel services to the United States, following the Trump administration’s order to end the de minimis rule, which allowed goods valued up to $800 to remain duty-free.

Last month, President Donald Trump signed an executive order withdrawing the exemption, effective August 29.

This means all international postal items bound for the US, regardless of their value, will now be subject to customs duties under the country-specific International Emergency Economic Powers Act (IEEPA) tariff framework. Gift items worth up to $100, however, will continue to remain exempt.

According to a White House fact sheet, the de minimis rule was widely abused, with most seizures linked to narcotics, counterfeit goods, and other dangerous items. But suspending it has led several governments and private parcel services worldwide, including Germany’s DHL and the UK’s Royal Mail, to halt operations.

Between 2015 and 2024, de minimis shipments entering the US surged from 134 million to 1.36 billion, with more than 4 million processed daily. In FY24, 90% of all cargo seizures were linked to de minimis shipments, according to the White House. The surge also led to revenue losses, with FY25 volumes already nearly triple those of FY24.

To address this, President Trump declared national emergencies on drug trafficking and trade deficits, and from May 2 suspended de minimis treatment for low-value shipments from China and Hong Kong, which he described as the main sources of abuse.

Under the executive order, transport carriers delivering shipments through the international postal network, or other “qualified parties” approved by US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments. While CBP issued certain guidelines on August 15, several critical processes relating to the designation of “qualified parties” and the mechanisms for duty collection and remittance remain undefined, according to the Department of Posts.

Consequently, US-bound air carriers have expressed their inability to accept postal consignments after August 25, citing a lack of operational and technical readiness. In view of this, the Department of Posts has decided to temporarily suspend booking of all types of postal articles destined for the US with effect from August 25.

Letters, documents, and gift items up to the value of $100 will, however, continue to be accepted and conveyed, subject to further clarifications from CBP and USPS, the statement added.

“The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity. Customers who have already booked articles that cannot be dispatched to the USA due to these circumstances may seek a refund of postage,” it said.

On Friday, DHL announced it would suspend standard parcel shipments for businesses to the US from August 25, citing new customs processes linked to the scrapping of America’s de minimis exemption. Other European postal groups, including Austria Post, PostNord, Belgium Post, and Royal Mail, have taken similar steps, warning of major disruptions to global parcel services.

While premium express services remain unaffected, standard parcels, except for gifts under $100, will face tighter checks. Online marketplace Etsy has also paused US shipping label purchases for several carriers as couriers adapt to the new rules.