On Sunday, the Department of Post banned several postal services to the US amidst the ongoing tariff threat by the United States. The ban will be effective from the 25th of August. The government authorities have stated that this order comes in the backdrop of the Executive Order 14324 of the United States, passed on the 30th of last month. The order aims to withdraw the de minimis exemption clause for goods costing less than USD 800. This means that goods costing less than 800 dollars, which were earlier allowed to enter the US market without any customs duty, will now have to face it.
The order states that any goods entering the US market from 29th August will be charged with customs duty under the International Emergency Economic Power Act (IEEPA). Gift items up to 100 USD are, however, exempted from the clause. This move will hamper the connectivity between families and students staying in the states, as medicines, important legal documents, and even festive items will receive a higher tariff. The alternatives to the Indian post are expensive and less popular. For comparison, a 2 kg parcel may cost around 2,600 rupees through India Post, but the same would be around 9000-10,000 rupees through FedEx or DHL.
Micro-exporters who were using the service and could not afford courier tariffs will also be negatively impacted. The importance of the Indian post to good going with the US can be estimated by the fact that the US is one of the most important export destinations globally for the Indian post. Other countries, including South Korea, Japan, Australia, and Singapore, have also taken steps after the US order and lack of clarity from the authorities.
While a lot of uncertainty remains, the Department of Post has said that it is monitoring the situation closely and is looking to resume the services soon. The department has also informed that those whose articles were booked but not dispatched can claim a refund.
