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India has resumed postal service to the US almost two months after they were suspended over tariffs. The resumption came into effect on Wednesday after a system to collect duties upfront was put in place, the Department of Posts said.
What’s the new system?
India Post has introduced a fully compliant Delivery Duty Paid (DDP) system for shipments to the United States, following extensive system development, coordination with CBP-approved Qualified Parties, and successful trials in the Delhi and Maharashtra Circles.
Under the new process, all applicable US customs duties will be collected at the time of booking in India and remitted directly to US Customs and Border Protection (CBP) through authorised partners. This streamlined system ensures regulatory compliance, speeds up customs clearance, and guarantees hassle-free delivery to recipients in the US with no additional duties or delays.
The CBP guidelines say that customs duty on postal shipments from India to the US will be capped at 50 per cent of the declared FOB value, under the International Emergency Economic Powers Act (IEEPA) tariff (with country of origin as India).
“Unlike courier or commercial consignments, no additional base or product-specific duties are levied on postal items. This favourable duty structure substantially lowers the overall cost burden for exporters, making the postal channel a more affordable and competitive logistics option for MSMEs, artisans, small traders, and e-commerce exporters,” a PIB statement said.
Why were services disrupted?
In August, the Department of Posts said it will stop accepting most consignments to the US, following changes to US duty regulations that take effect later this month.
Under a US order issued on July 30, the duty-free exemption for goods worth up to USD 800 has been withdrawn. On August 29, all postal items bound for the US, regardless of their value, began attracting customs duties under the International Emergency Economic Powers Act (IEEPA). Only gift items valued up to $100 were exempted.
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