India Post US Parcel Suspension 2025: What Happened & What Small Exporters Should Do Next

In August 2025, India Post suspended all parcel deliveries to the United States, cutting off the most affordable shipping route for thousands of Indian exporters.
The decision came soon after the U.S. administration ended the de minimis exemption that previously allowed low-value imports (up to USD 800) to enter duty-free. This change forced postal operators to pause services until new duty-collection mechanisms could be implemented. Source: Reuters

For small exporters, MSMEs, and e-commerce brands selling on platforms like Etsy and Amazon Global, the suspension was more than an inconvenience. It halted their largest export market overnight.

Policy Change That Sparked the Crisis

On July 30 2025, the U.S. government issued Executive Order 14324, formally ending the de minimis exemption. Beginning August 29, all shipments, no matter the value, became subject to import duties. Source: Reuters

India Post followed on August 23 by suspending US-bound parcel bookings effective August 25. Airlines and customs officials were unprepared for the new data-exchange and duty-collection processes, forcing a temporary halt across all postal routes. Source: Press Information Bureau (PIB)

How Small Exporters Were Affected

Small and medium-sized exporters depend on India Post for its low rates and reliable coverage. When services stopped, many were forced to shift to private couriers like DHL, FedEx, or UPS at three to five times the cost. Source: Business Standard

For instance, a 2 kg parcel to the US that cost ₹2,600 via India Post rose to nearly ₹9,000 through a private courier. Smaller exporters paused orders or absorbed losses, while families sending gifts and medicines were also cut off. Source: Times of India

The 50 Percent Custom Duty and Its Implications

Under the new U.S. rules, shipments from India face a flat 50 percent customs duty on the declared FOB value. India and Brazil now share the highest postal tariff bracket globally. Source: The Hindu Business Line

The policy was positioned as a measure against trade imbalances and illicit shipping, but it hit compliant small exporters hard. For many MSMEs, the U.S. market became temporarily unreachable.

India Post’s Return with the DDP System

On October 15 2025, India Post resumed services using a Delivery Duty Paid (DDP) system. Exporters now pay customs duties at the time of booking in India, which are then remitted to U.S. Customs through approved partners such as Yakit. Source: PIB India

This model ensures that recipients in the U.S. do not face surprise fees or delivery delays. India Post confirmed that postal tariffs remain unchanged, preserving affordability for exporters despite the duty.

Bombax: A Reliable Alternative for Exporters

When India Post services paused, Bombax helped small exporters continue shipping through its tech-driven network and transparent pricing model. The platform combines affordability with automation to make global shipping simple for MSMEs.

Bombax advantages:

• Multi-carrier flexibility via International Courier Services and Surface Courier Services
• Nationwide coverage with pickup from Mumbai, Pune, Delhi, Bangalore, and other major cities
• Automated documentation and real-time tracking
• Clear rate comparisons to help plan shipments and reduce hidden costs
• Scalable logistics solutions without minimum shipment requirements

With Bombax, exporters can plan for regulatory changes while keeping operations smooth and cost-efficient.

How Exporters Can Adapt Proactively

1. Re-evaluate pricing by including the 50 percent U.S. duty.
2. Test India Post’s DDP system for small batches before full scale.
3. Maintain two shipping options, postal and courier, to stay resilient.
4. Use Bombax to automate paperwork and gain rate transparency.
5. Update buyers about duty-inclusive pricing and delivery timelines.

Building Logistics Resilience for the Future

The 2025 India Post crisis highlighted that logistics is not just a support function but a strategic advantage. Exporters who diversify shipping channels and leverage technology stand better prepared for policy or supply-chain shifts.

Platforms like Bombax make this possible by combining cost-efficiency, automation, and nationwide coverage so businesses can grow confidently in global markets. Ready to simplify your shipping? Contact Bombax or Book Your Shipment Now to explore affordable international courier solutions for your business.

Frequently Asked Questions

1. Why did India Post suspend shipments to the U.S.?
   Because the U.S. government ended the de minimis duty-free limit and introduced new customs regulations that India Post was not yet equipped to handle.
2. Is India Post shipping to the U.S. again?
   Yes. Since October 15 2025, India Post has resumed services under a Delivery Duty Paid system that collects duties at the time of booking.
3. What is the new duty on shipments to the U.S.?
   A flat 50 percent customs duty applies on the declared FOB value for all postal shipments from India to the U.S.
4. How does Bombax support exporters during such disruptions?
   Bombax provides multi-carrier shipping options, automated customs documentation, and real-time cost comparison to help exporters manage international shipments efficiently.
5. What should exporters do to avoid future delays or losses?
   Diversify logistics partners, adopt technology platforms like Bombax for tracking and documentation, and stay updated on regulatory changes affecting key markets.