New Delhi (ABC Live): On 30 July 2025, the U.S. Administration issued Executive Order No. 14324. Through this directive, it announced the U.S. duty-free imports withdrawal, ending the de minimis exemption for goods valued up to USD 800, effective 29 August 2025.

For many years, the exemption allowed millions of small-value parcels to enter the U.S. without duties, supporting the rise of global e-commerce. With the new order, however, all consignments — regardless of value — will now be taxed under the International Emergency Economic Powers Act (IEEPA). Only gifts worth USD 100 or below continue to qualify for duty-free entry.

Because carriers are not yet ready to collect and remit duties, India Post announced it will suspend most parcel bookings for the U.S. from 25 August 2025, except for letters/documents and gifts under USD 100. As a result, exporters relying on India Post face immediate disruption.

Why the U.S. Issued the Order

Washington justified the duty-free imports withdrawal on several grounds.

• Revenue Protection: Billions in duty losses occurred due to parcel-splitting (CRS). Consequently, the government sought to tighten enforcement.

• Level Playing Field: Domestic retailers argued they faced unfair competition from overseas sellers (USITC). Therefore, duties were reintroduced to restore balance.

• Border Security: According to CBP, counterfeit and unsafe goods often entered through small parcels. In addition, high parcel volumes strained inspection systems.

• Strategic Leverage: By invoking IEEPA, U.S. authorities linked customs enforcement to economic security. This move also signals that trade policy is now part of broader national security planning.

Impact on India

This policy shift carries wide-ranging consequences for India.

1. MSMEs & E-Commerce – Small exporters now face 10–25% higher costs, and therefore risk losing competitiveness.

2. Postal Disruption – Because India Post suspended shipments, businesses must instead use costlier private couriers. As a result, logistics costs will increase.

3. Gifts to Diaspora – Parcels above USD 100 are now taxed. Consequently, remittances of festive gifts may fall.

4. Macro Impact – Since the U.S. is India’s largest export market (USD 82.2 bn, FY 2024–25) (MoCI), even narrow measures such as this create ripple effects across trade flows.

Data Analysis

Table 1: India–U.S. Trade Snapshot (FY 2024–25)

Table 2: Parcel Flows (2023–24 Estimates)

Table 3: Cross-Border E-Commerce Exports

Table 4: Gift Shipments to U.S.

Table 5: Estimated Exporter Losses

Treaty & Convention Analysis

• WTO (GATT 1994) – Permitted if tariffs stay within commitments (WTO GATT 1994).

• WTO TFA – Nevertheless, goes against the spirit of simpler trade (WTO TFA).

• UPU Convention – Moreover, risks undermining postal continuity (UPU).

• Security Exceptions (GATT Art. XXI) – Use of IEEPA may be challenged (WTO DS512).

• MFN Compliance – On the other hand, no breach occurs unless selective exemptions appear.

Why ABC Live Is Publishing This Report Now

The U.S. duty-free imports withdrawal is not just a routine customs update. Instead, it reflects a broader shift where economic security outweighs trade facilitation.

ABC Live is publishing this now because:

• Exporters and citizens need clear guidance.

• WTO, TFA, and UPU implications are often overlooked.

• Data-backed estimates highlight both scale and losses.

• In addition, the broader strategic context shows a fragmenting trade order.

How This Report Is Unique

This ABC Live analysis stands apart because it:

• Explains why the U.S. acted, not only what it announced.

• Brings in treaty analysis missing from mainstream reports.

• Provides India-focused trade data with concrete loss estimates.

• Therefore, suggests policy options at WTO, UPU, and through diplomacy.

Editorial Note

At ABC Live, we see the U.S. duty-free imports withdrawal as part of a global shift in trade governance. For India, it disrupts postal trade, burdens MSMEs, and slows e-commerce growth. Consequently, the policy response must combine diplomacy, WTO engagement, and domestic support to safeguard digital exporters and small businesses.

Sources & References

1. Executive Order No. 14324 (U.S. Federal Register) – https://www.federalregister.gov/

2. International Emergency Economic Powers Act (IEEPA), U.S. Treasury/OFAC – https://ofac.treasury.gov/

3. U.S. Customs and Border Protection (CBP) – Official Guidelines – https://www.cbp.gov/

4. Congressional Research Service Report on U.S. De Minimis Imports – https://crsreports.congress.gov/product/pdf/IF/IF11539

5. U.S. International Trade Commission (USITC) – https://www.usitc.gov/

6. Ministry of Commerce & Industry, Government of India (MoCI) – https://commerce.gov.in/

7. DGFT Export Data Portal – https://www.dgft.gov.in/

8. Gems & Jewellery Export Promotion Council (GJEPC India) – https://gjepc.org/

9. Export Promotion Council for Handicrafts (EPCH) – https://epch.in/

10. Spices Board of India – https://www.indianspices.com/

11. India Post – International Mail Updates – https://www.indiapost.gov.in/

12. Invest India – Cross-Border E-Commerce Report – https://www.investindia.gov.in/

13. WTO – GATT 1994 Text – https://www.wto.org/english/docs_e/legal_e/gatt47_01_e.htm

14. WTO – Trade Facilitation Agreement (TFA) – https://www.wto.org/english/tratop_e/tradfa_e/tradfa_e.htm

15. Universal Postal Union (UPU) Convention – https://www.upu.int/

16. WTO Dispute: Russia – Traffic in Transit (2019) – https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds512_e.htm

17. MoCI TradeStat Portal (India–U.S. Bilateral Data) – https://tradestat.commerce.gov.in/

Also, Read

How India Can Achieve Sustainable Power Under SAUBHAGYA