The Department of Posts took cognisance of the Executive Order No. 14324 issued by the US Administration on July 30, under which the duty-free de minimis exemption for goods valued up to USD 800 will be withdrawn with effect from August 29.
According to the Ministry of Communications, consequently, all international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act (IEEPA) tariff framework. However, gift items up to the value of USD 100 shall continue to remain exempt from duties.
As per the Executive Order, transport carriers delivering shipments through the international postal network, or other “qualified parties” approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments.
While CBP issued certain guidelines on August 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 consignments after August 25, citing a lack of operational and technical readiness.
In view of the above, the Department of Posts has decided to temporarily suspend booking of all types of postal articles, destined for the USA, with effect from August 25, except letters/documents and gift items up to USD 100 in value. These exempt categories will continue to be accepted and conveyed to the USA, subject to further clarifications from CBP and USPS.
