India Post has halted parcel services to the United States temporarily, on the basis that they are confused by new U.S. import requirements and the collection of customs duties. During the time parcels are stuck, the postal service is on its way to receive letters, documents, and giftware of up to a hundred dollars.
The relocation is after a recent U.S executive order of July 30, which ended the worldwide “de minimis the such that previously, goods worth less than $800 could make their way into the United States with just a small amount of paperwork. All parcels sent to the U.S will now be liable to customs duty, with the exception of small gifts worth less than 100 dollars. The order also directs that the requirement of collecting and paying these duties should be done by airlines or other approved agencies. The U.S. government has, however, not made clear which agencies will be vested with this power to execute this role and the operation of the collection system.
Because of this confusion, airlines have mentioned that they will not deliver parcels to the U.S. after August 25. Deputy Director General (IR&GB) of the Department of Posts, LK Dash, said that there is no contract between India Post and an agency that could collect and pay these duties. “We do not have a mechanism for collecting and remitting customs duties. Airlines have also not acquiesced, and the qualified parties referred to by the United States government are also undecided. The order came far too soon than expected, and we had no choice other than to freeze services.”
Suspension is indefinite, and no timeline has been provided regarding resumption. They have contacted U.S. Customs and Border Protection, the India Ministry of Commerce, and the Ministry of External Affairs to solve the problem.
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