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E-Commerce shock: India suspends most postal services to US!

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India’s Department of Posts has temporarily suspended booking and transmission of virtually all postal items destined for the United States, effective August 25, 2025, with exceptions limited to letters, documents, and gift items valued up to USD 100. This abrupt move comes in response to the United States’ decision to withdraw the de minimis duty-free exemption for imports valued under USD 800, a policy change that takes effect on August 29, 2025 .

The de minimis exemption previously allowed billions of low-value packages to enter the US without tariffs—a change that had facilitated cross-border e-commerce growth. However, the US government, citing national security and customs enforcement concerns, extended the suspension globally, now requiring duties on all imports, including formerly eligible low-value parcels .

Postal services worldwide are scrambling to adapt. India’s action reflects broader international uncertainty and logistical challenges, particularly as countries and postal operators await further clarification from US authorities on duty-collection processes.

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