In a timely Diwali gift for exporters and Indian families abroad, the Department of Posts has announced the resumption of all international postal services to the United States starting October 15, 2025, ending a suspension that had disrupted shipments for nearly two months.
The reopening comes as India enters its peak festive dispatch season, when thousands of parcels — from handmade diyas and sweets to small business exports — are sent to relatives and customers across America. The halt since late August had left exporters, artisans, and members of the diaspora scrambling for alternatives amid soaring courier costs.
Festive Relief for Exporters and Families
Postal links were suspended on August 22 after a new U.S. Executive Order (14324) withdrew “de minimis” exemptions and tightened customs reporting for postal imports. The move required new compliance systems for duty collection, prompting India to temporarily halt outbound services.
The Department of Posts said it had developed a compliant “Delivery Duty Paid (DDP)” mechanism in coordination with U.S. Customs and Border Protection (CBP)–approved partners. The system has already been tested successfully in Delhi and Maharashtra.
Under the new arrangement, all applicable customs duties on parcels will be collected upfront in India, transmitted electronically to CBP, and cleared before arrival — ensuring no surprise charges or delays for recipients in the U.S.
“This resumption will help restore affordable and transparent shipping for small exporters and families during the festive period,” a senior postal official said.
Flat Duty Structure, No New Fees
The U.S. has imposed a flat customs duty of 50 per cent of the declared Free-on-Board (FOB) value on postal consignments originating from India, under the International Emergency Economic Powers Act (IEEPA) tariff. Unlike commercial cargo, postal items will not attract additional product-specific duties, making them a cheaper option for small-volume trade.
India Post has clarified that it will not impose any extra charges for processing these DDP shipments. Regular postal rates will apply, preserving the low-cost advantage for MSMEs, artisans, and e-commerce exporters who rely on postal networks.
A Boost for ‘Make in India’ and the Diaspora
The restart is expected to provide a crucial lifeline for India’s export clusters and handicraft hubs, which depend heavily on international postal routes during the festival export window. From Surat’s textile traders and Moradabad’s brassware artisans to online sellers in Jaipur and Chennai, thousands of small businesses depend on India Post for cost-efficient last-mile delivery to U.S. buyers.
For millions of Indian families in the U.S., it also restores a sentimental link — the annual ritual of receiving Diwali gifts, sweets, and hand-woven clothes from home.
“Every year, I send boxes of handmade diyas and sweets to my sister in New Jersey. Last month’s suspension almost broke that tradition,” said Delhi-based entrepreneur Rachna Verma. “This news came just in time.”
Simplified Compliance, Faster Clearance
According to officials, the new DDP system will simplify customs compliance and reduce clearance times. By collecting duties in India, exporters and individuals can now know the total shipping cost upfront.
The Department of Posts said all postal categories — EMS, Air Parcels, Registered Letters, and Tracked Packets — will again be available for booking at post offices, Dak Ghar Niryat Kendras, and online via the India Post portal.
Heads of Circles have been asked to conduct awareness drives to educate small exporters and entrepreneurs about the new system and its benefits.
Policy Context and Economic Signal
Analysts view the move as strategically significant, both economically and diplomatically. The U.S. remains India’s largest merchandise export destination, accounting for nearly 18 per cent of outbound trade. Restoring postal access ahead of the festive season is expected to ease pressure on courier channels and help sustain export momentum amid tightening global demand.
“The quick resolution reflects India Post’s agility and the growing role of public postal systems in cross-border commerce,” said a trade policy analyst. “In a fragmented global trade environment, ensuring small exporters have compliant, affordable channels is vital.”
The government said the reopening aligns with its flagship Make in India, One District One Product (ODOP), and Dak Ghar Niryat Kendra (DNK) initiatives — designed to help rural and small-town entrepreneurs reach overseas buyers.
As Diwali shipments start to move again, the reopening of postal ties with the U.S. not only restores a trade corridor but also rekindles a cultural bridge. For many, the first batch of parcels leaving Indian post offices this week will carry more than goods — they’ll carry festive goodwill across oceans.
