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“India Post Implements Duty Payment System for US Shipments”

India Post has recommenced all types of international postal services to the United States after a brief suspension that started in late August due to modifications in US customs regulations. The interruption was triggered by a directive issued by the US Administration on July 30, revoking the duty-free privilege for imports valued up to USD 800. Under the new regulations effective August 29, all postal shipments to the US are now subject to customs duties under the International Emergency Economic Powers Act (IEEPA) tariff framework, irrespective of their value. Only gift items valued up to USD 100 are exempt from duties.

The directive also outlined that only international carriers and approved “qualified parties” by US Customs and Border Protection (CBP) are permitted to collect and remit these duties. Since the qualification process and duty collection systems were not yet established, airlines had indicated their inability to transport postal consignments to the US beyond August 25. Consequently, the Department of Posts halted the booking of most articles to the US, allowing only letters, documents, and qualifying gift items.

In response to these regulatory modifications and to resume services, India Post has introduced a Delivery Duty Paid (DDP) mechanism in collaboration with CBP-approved qualified parties. This system underwent operational trials in the Delhi and Maharashtra postal circles and is now being rolled out nationwide. With the DDP model, all applicable customs duties are collected upfront during booking in India and directly remitted to US authorities, ensuring adherence to the revised US import policy. This streamlined process facilitates quicker customs clearance and delivery upon reaching the United States.

Under the updated guidelines, a flat 50 percent customs duty is levied on the declared Free on Board (FOB) value of postal shipments from India. Unlike commercial or courier shipments, postal articles do not attract any base or product-specific duties, providing a cost advantage to Indian exporters. The Department of Posts has affirmed that no extra fees will be charged for DDP processing or engaging qualified parties, and the existing postal tariffs will remain unaltered.

The resumption of services is anticipated to greatly benefit micro, small, and medium enterprises (MSMEs), artisans, traders, and e-commerce exporters by offering a compliant and cost-efficient logistics solution for shipping goods to the United States. Customers can now book EMS, air parcels, registered letters and packets, and tracked packets for delivery to the US through any post office, International Business Centre, or Dak Ghar Niryat Kendra.

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