(Image source from: Thehindu.com)

The postal department announced on Saturday that it will temporarily stop all mail services to the United States starting August 25. This decision is due to new US customs rules that will start soon. The change follows Executive Order No. 14324, which the US government announced on July 30, and this order ends the tax exemption for items valued at up to USD 800. The halt in postal services occurs amid rising trade tensions, as US President Donald Trump has recently placed a 25 percent tax on imports from India, along with a 25 percent penalty related to buying oil from Russia, bringing the total tax to 50 percent. According to the postal department, starting August 29, “all international mail items heading to the USA, no matter their value, will have to pay customs duties based on the specific International Emergency Economic Power Act (IEEPA) tariff rules for that country.” But, it mentioned that gifts valued up to USD 100 will still be tax-free.

With the new regulations, delivery companies operating in the international mail system or other "approved parties" recognized by US Customs and Border Protection (CBP) must gather and pay the customs duties. The announcement noted that even though CBP provided guidelines on August 15, some details on how to identify the “qualified parties” and how to collect duties are still “not defined.” Consequently, air carriers that send items to the US have informed Indian officials that they will not be able to take packages after August 25 because they are not fully prepared. “Due to these factors, the Postal Department has chosen to temporarily halt the acceptance of all types of mail to the USA starting August 25, 2025, except for letters/documents and gifts valued under USD 100,” the announcement explained. The department also mentioned that customers who have sent items that cannot be delivered can request a refund for their shipping costs. Additionally, it stated that it is “carefully watching the situation develop in cooperation with all involved parties, and efforts are being made to restore services as quickly as possible.”