India post set to resume all services to United States from Oct 15

INdia carry testament take up all categories of international postal services to the United States from oct 15, nearly 2 months after suspending shipments due to regulatory changes in American customs duties.The Department of Posts (DoP), under the Ministry of Communications, said on Tuesday that services to the US covering Express Mail Service, air parcels, registered letters and tracked packets will be fully restored from all post offices, International Business Centres and Dak Ghar Niryat Kendras.On Wednesday, India Post will adopt a new Delivery Duty Paid (DDP) mechanism compliant with US Customs and Border Protection (CBP) rules. Under this system, applicable customs duties set at a flat rate of 50% of the declared free-on-board (FOB) value will be collected in India at the time of booking and remitted directly to the CBP through qualified parties. Letters, documents, and gifts valued up to $100 will continue to be exempt from duty.The department said that the new duty structure significantly reduces costs for exporters, making the postal channel a more affordable and competitive logistics option for MSMEs, artisans, small traders, and e-commerce exporters.LK Dash, deputy director general (IR & GB), explained things will become difficult for those who are importing from India, and although Indian exporters initially pay the 50% US duty upfront, the cost is ultimately borne by the US buyers, who either reimburse the sender or pay a higher total price for the goods.“Plus, the fact that we were importing oil from countries which they [the US] did not want, so there is an imposition of 50% duty, otherwise we could have come in the bracket of 15-20% also.” DoP Secretary Vandita Kaul added that India Post remains the cheaper alternative to private courier companies.Over the past two months, Dash told HT that after the US government made duty collection mandatory for Indian shipments, India appointed an intermediary to collect and remit the duty to US customs. The process involved selecting a qualified partner, running tests, integrating software, and meeting US compliance requirements.US-based e-commerce logistics firm Yakit has been appointed as India’s authorised partner to collect export duties and remit them to US customs. Yakit charges roughly $0.01 per shipment, but the Department of Posts will not pass this cost on to customers, so postage rates remain unchanged.The department said it will not charge customers any additional fees for facilitating DDP payments, and existing postal tariffs will remain unchanged. The new process, it added, ensures faster customs clearance and delivery without surprise charges or delays.“All Heads of Circles have been directed to raise awareness among exporters and sellers and facilitate exports through DNKs and designated booking offices,” said DoP’s public notice seen by HT.India had in late August announced suspension of postal services to the US beginning August 29, following an executive order by the Trump administration that withdrew the de minimis exemption, which earlier allowed goods worth up to $800 to enter the country duty-free. The move required new systems for collecting and remitting import duties, prompting postal operators worldwide, including India Post, to halt shipments.Initially, India Post continued to accept only letters, documents and gifts valued up to $100. However, on August 29, the Indian government expanded the suspension to all categories of mail, citing carriers’ inability to transport US-bound shipments and the absence of a clear regulatory mechanism.The DoP said the resumption of US-bound services “marks a major milestone” in strengthening India’s international logistics network and aligns with national initiatives such as Make in India and One District One Product (ODOP).