India Suspends Parcel Services With US In Wake of Confusion Over New American Import Duties
New Delhi: Much like postal operators in Europe, India Post too on Saturday (August 23) announced that it will temporarily suspend all parcel services to the US from August 25, due to confusion over new American import duties.
The suspension of parcel services will affect all parcels irrespective of value. As a result, only letters, documents and gift items worth up to $100 will continue to be accepted for delivery to the US, reported Hindustan Times.
The disruption in the parcel service results from the Donald Trump administration’s decision last month to scrap the global “de minimis” rule, which earlier allowed goods valued under $800 to enter America with minimal paperwork.
The change, which will be effective from August 29, means that every parcel entering the US will now attract customs duties. As per an executive order issued on July 30, the only exception will be small gifts under $100.
“We don’t have any agreement with any agency who can accept, collect the duty and pay it. Airlines have also not agreed, and the ‘qualified parties’ that the US government talks about have not yet been finalised,” said L.K. Dash, deputy director general (international relations and global business), department of posts, reported Hindustan Times.
While the US executive order says that airlines or other approved agencies are required to collect and pay customs duties on parcels, the authorities have not yet explained who these agencies will be or how the duty collection system will function.
The HT report said that the disruption will affect trade flows significantly because India Post normally sends an average of 3 tonne of cargo daily to the US, totalling 100 to 200 tonnes monthly. India Post has reached out to US Customs and Border Protection and flagged the matter to the ministry of commerce and ministry of external affairs who handle counterpart discussions with American authorities.
“This will be a major impact on exports. Until we tide over the issues, businesses and individuals will be badly hit. We have no idea how long this will last,” said Dash.
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