Datanomics: India Post's move may further hamper its foreign business

India Post halts US services as de-minimis exemption ends, bringing customs duties on all low-value imports

India Post, like national postal operators of other countries, recently suspended all its postal services to the United States (US), after Washington withdrew the duty-free de-minimis exemption for goods. The de-minimis imports gave a duty and tax-free entry of low-value shipments valued up to $800 into the US. However, all US-bound international postal items will now attract Customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. 

 

International dealings of India Post

 

India Post dispatched 13.04 million letters and posts internationally in 2023 – just 20 per cent of what it sent in 2018. On the other hand, it sent 0.53 million parcels in 2023, the highest in recent years. 

 

De-minimis imports to US

 

De-minimis imports in the US rose to $67 billion in 2020, during the Covid-19 pandemic, and reached nearly $50 billion in October to June of FY25. Additionally, the volume of de-minimis imports has continued to swell over the years. 

 

Country-wise share in de-minimis imports to US (%)