After two-month suspension, India Post restores U.S. link with new duty system

India will restart all categories of international postal services to the US from October 15, ending a nearly two-month suspension triggered by changes in US customs regulations.

The Postal Department said it has established a fully compliant mechanism to meet new US Customs and Border Protection (CBP) rules that forced India to halt shipments on August 22 after Washington withdrew. “minimum” Exemptions for mail imports according to Decree No. 14324.

The resumption follows successful system trials in Delhi and Maharashtra, along with extensive coordination between India Post and CBP-approved “Qualified Parties”. Under the new regulation, all import duties imposed on packages destined for the United States will be collected in advance in India and remitted directly to CBP through these Qualified Parties.

“This ensures full regulatory compliance, faster customs clearance and hassle-free delivery without additional customs duties or delays,” the Ministry of Communications said in a statement.

Flat 50% tax, no extra fees

The US has imposed a flat duty of 50% of the declared Free on Board (FOB) value on postal items originating from India under the International Emergency Economic Powers Act (IEEPA) tariff. The flat rate replaces product-specific tariffs and makes mail exports cheaper for small businesses than commercial courier channels.

In a significant relief to exporters, India Post will not charge any additional charges for facilitating the new Delivery Duty Paid (DDP) mechanism or Qualified Party services. Postal rates will not change.

The simplified system will especially benefit micro, small and medium enterprises (MSMEs), artisans and e-commerce sellers who rely on affordable and transparent logistics, officials said.

Support for “Make in India” and export hubs

The postal service emphasized that the DDP mechanism improves the ease of doing business by offering predictable, all-inclusive shipping costs. Customers can now pre-pay all taxes at the time of booking, enabling faster, duty-free delivery in the US

Postal shipments to the USA, including Express Mail Service (EMS), Air Parcels, Registered Letters and Tracked Parcels, can again be booked at any Post Office, International Business Center or Dak Ghar Niryat Kendra as well as India Post’s online portal.

The ministry has directed regional postmasters to launch awareness campaigns about the renewed services and benefits for exporters and entrepreneurs.

This move is expected to strengthen India’s export ecosystem by providing reliable, low-cost logistics connectivity to global markets, officials said. The initiative is in line with national programs such as Make in India, One District One Product (ODOP) and Dak Ghar Niryat Kendras (DNKs), which aim to boost local production and exports.

Strategic step towards export flexibility

Trade experts see the revival of postal exports as part of India’s broader efforts to insulate its export channels from changing global regulatory environments. The suspension had affected small exporters, especially those dealing in handicrafts, textiles and online products, who rely on India Post as a low-cost shipping option.

“India Post’s rapid compliance response underscores how critical the postal network has become for small exporters and digital commerce,” said a senior trade analyst. “With increasing protectionism and tariff barriers, mechanisms like DDP can help Indian firms remain competitive.”

Officials said the restart was a “major milestone” in strengthening India’s international logistics framework. It also confirms India Post’s evolving role from a local postal carrier to a key enabler of export-led growth.

The government aims to integrate small exporters into global supply chains in the face of increased customs scrutiny and trade fragmentation by restoring a vital trade corridor with the United States, one of India’s largest export markets.