Amid new rules, India 'temporarily suspends' postal services to US

NEW DELHI: Government has temporarily suspended postal services to the US as US-bound air carriers have denied carrying shipments due to lack of clarity on new norms issued by American customs department, Ministry of Communications said Saturday.

However, services will continue for letters, documents and gift items up to $100. The exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from Customs and Border Protection (CBP) and United States Postal Service (USPS), the ministry said.

Under an executive order issued by the US administration on July 30, goods valued above $100 will be subject to customs duties in America with effect from Aug 29.

As per the order, transport carriers delivering shipments through the international postal network are required to collect and remit duties on postal shipments.

"While CBP issued certain guidelines on Aug 15, several critical processes relating to the designation of 'qualified parties' and mechanisms for duty collection and remittance remain undefined. Consequently, US-bound air carriers have expressed their inability to accept postal cargo after Aug 25, citing lack of operational and technical readiness," ministry said.

Following the development, Department of Posts has decided to "temporarily suspend booking of all types of postal articles" destined for the US with effect from Monday, except letters/documents and gift items up to $100 in value. The department is closely monitoring the evolving situation, and every effort is being made to normalise services at the earliest possible opportunity.

"Customers who have already booked articles that cannot be dispatched to the US may seek a refund of postage," the statement said. All international postal items destined for the US will be subject to customs duties as per its new tariff framework.