MAILCOM Las Vegas October 2-4, 2017

CRS#:

PM262

Session:

Taking the Mystery Out of International Mailing

Day/Date: Round/Time:

Tuesday, October 3, 2017 Round Six: 2:30-3:30pm

Presented By:

Merry Law and Wayne Winkler WorldVu LLC

Please be courteous to others and turn all communication devices to silent mode  

Interna(onal  Mail’s  Journey   flight per PostNord export control right to fly over or transit other countries U.S. customs & imports flight under contract to the USPS

export requirements hazardous or (various U.S. agencies) dangerous?

customs clearance and duty payment (Tullverket)

The  World  We  Work  In   •  Over  7  billion  people   •  193  U.N.  member  countries   •  192  member  countries  of  the  UPU   (Universal  Postal  Union)   •  215+  postal  des(na(on  countries  &  territories   (Count  depends  on  country  of  origin.)  

The  Postal  World  We  Work  In   •  Postal  maNer  vs.  private  freight   •  Customs  implica(ons   •  Once  postal,  always  postal  

•  Postal  monopolies  vs.  liberalized  postal  sectors   •  No  interna(onal  monopoly   •  No  domes(c  monopoly  in  liberalized  countries  

•  Terminal  dues  payments  vs.  postage  payments  

•  Posts  pay  TDs;  we  pay  postage   •  Des(na(on  country  can  hold  remailed  items  if   TDs  are  lower  than  from  mailer’s  “home”  country  

The  Interna(onal  Mailing  Environment   The Major Players (other than mailers) •  The  Universal  Postal  Union  (UPU)  is  a  specialized  agency  of  the   United  Na(ons  for  coopera(on  in  the  postal  sector.    192   Member  countries  agree  on  interna(onal  regula(ons  and   trea(es  that  make  the  rules  for  interna(onal  mail  exchange   •  The  Designated  Operators-­‐“na(onal”  postal  services-­‐USPS,   Canada  Post,  Deutsche  Post,  et  al.  bound  by  UPU  agreements.   •  Other  Logis(cs  Companies  -­‐  express  companies,  re-­‐mailers,  mail   consolidators,  local  delivery  companies   •  U.S.  and  foreign  government  customs  agencies,  import  and   export  control  agencies  

UPU  Classes  of  Interna(onal  Mail   LeNer-­‐post  items*  are   •  •  •  • 

priority  items  and  non-­‐priority  items,  up  to  2  kg.  (4.4  lbs.)   leNers,  postcards,  printed  papers  and  small  packets,  up  to  2  kg.   items  for  the  blind,  up  to  7  kg.  (15.4  lbs.)   special  bags  containing  newspapers,  periodicals,  books  and   similar  printed  documenta(on  for  the  same  addressee  at  the   same  address  called  “M  bags”,  up  to  30  kg.  (66  lbs.)  

Parcel  Post  items**  are  

•  Heavier  items   •  Limits  can  be  20  kg.  (44  lbs.)  or  up  to  50  kg.  (110  lbs.)   •  Size  limits  also  apply  

*  UPU  Parcel  Post  Manual              **  Our  simplifica(on  

The  UPU’s  Integrated  Product  Plan   •  Takes  effect  in  phases  beginning  in  January,  2018   •  Dis(nguishes  for  leNer-­‐post  between  correspondence   and  goods  (Defini(ons  differ  from  customs  defini(ons.)   •  Introduces  new  category:    e-­‐Packet  (not  the  same  as   the  USPS  commercial  e-­‐packet)   •  “Menu  approach”  for  service  level,  price  and  value-­‐ added  services  for  both  document  and  goods   categories   •  Customs  and  security  requirements  will  make  the   provision  of  electronic  advance  data  (EAD)  mandatory   on  all  postal  items  containing  goods.   •  UPU  ac(ons  are  introduced  according  to  na(onal  (U.S.)   laws  and  procedures.    Watch  for  details  from  the  USPS.  

“Special”  Services  Covered  by  the  UPU     Service

status

registration for outbound priority & airmail letter-post registration for non-priority and surface letter-post to destinations with priority or airmail registration for non-priority & surface letter-post to destinations w/o priority or airmail registration service for all inbound letter-post items insurance for letter-post and parcels recorded delivery for letter-post cash-on-delivery (COD) service for letter-post and parcels express delivery service for letter-post and parcels delivery to addressee in person of registered, recorded delivery or insured letter-post services free of charges and fees for letter-post and parcels fragile and cumbersome parcels services consignment service for collective items from one consignor sent abroad International business reply service (IBRS) is basically optional but all member countries are obliged to operate IBRS "return" service. International reply coupons are exchangeable in all members but sale is optional. Advice of delivery for incoming registered & recorded delivery or insured letter-post and parcels must be given. Outward advice of delivery is optional.

mandatory mandatory optional mandatory optional optional optional optional optional optional optional optional mixed mixed mixed

Each  “Last  Mile”  Carrier  Controls   • Signatures  and  confirma(ons   • Tracking   • Delivery  (me  and  date   • Deliverablity   • Return  of  Undeliverable  as  Addressed   (UAA)  Mail  

Interna(onal  addressing  basics    

•  Correct  and  valid  addresses  are  determined  by  each  country.   •  More  than  25  “basic”  address  formats   •  Lines  may  be  long  and  there  may  be  more  lines.            

Average # of Maximum Average Maximum lines lines characters/line characters/line World

5.9

10

14.8

54

Germany Mexico U.K. U.S.

5.4 6.1 6.8 4.1

8 9 10 6

15.9 18.6 11.3 18.9

30 30 40 30

•  Data  quality  and  databases   •  Address  hygiene  and  updates  

Interna(onal  Mail’s  Basic  Journey  

right to fly over or transit other countries

flight under contract to the USPS export requirements hazardous or (various U.S. dangerous? agencies)

customs clearance and duty payment (Tullverket)

Universal  Prohibi(ons  and  Restric(ons   level

category

prohibited radioactive, explosive, flammable or dangerous goods, including replica & inert ordnance prohibited prohibited prohibited prohibited prohibited prohibited prohibited restricted

narcotics and psychotropic substances Category A infectious biological substances live animals counterfeit and pirated items obscene or immoral articles certain documents anything prohibited in the country of destination Category B infectious biological substances

restricted dual-use goods (strategic goods usable for civilian or military use) restricted products from endangered species of fauna and flora per the Washington Convention. restricted restricted restricted restricted

food products plants, plant material and seeds tobacco and tobacco products valuable articles: coins, banknotes, currency, travellers' checks, securities payable to the bearer, platinum, gold, silver, jewels or precious stones, jewelry of high value

The  Interna(onal  Mailing  Process  

Export  &  Import:  different  for  each  country   •  The  list  of  restric(ons  from  the  US  are  online  at   hNp://www.treasury.gov/resource-­‐center/ sanc(ons/SDN-­‐List/Pages/default.aspx.   •  Import  or  export  licenses  may  be  required.    (See   hNp://www.treasury.gov/resource-­‐center/ sanc(ons/Programs/Pages/Programs.aspx.)   •  Other  countries  also  have  their  own  restric(ons.     See  the  USPS  individual  country  lis(ngs,   hNp://pe.usps.gov/text/imm/immctry.htm    

Customs:  a  separate  func(on  from  the   Post    Value  is  the  retail  or  commercial  value.  

 For  the  HS  (Harmonized  System)  tariff   number  from  the  US  Interna(onal  Trade Administra(on,  see   hNp://hts.usitc.gov/.   •  More  documenta(on  (bill  of  lading,  commercial  invoice,  etc.)   may  be  required,  par(cularly  for  high-­‐value  or  large  items.   Documents (no customs declaration needed): •  business records •  personal correspondence •  circulars, pamphlets, advertisements •  written instruments not for resale •  money orders, checks, and similar items

Items that are not defined as documents: •  printed music •  books and periodicals •  antique or collector documents •  blueprints and engineering drawings •  printed educational and test materials

Using  Postal  Designated  Operator   i.e.  the  USPS  

  •  The  mail  meets  the  requirements   of  the  USPS  (or  the   operator  in  another  country  if  mailing  elsewhere).   •  Discounts  are  available  through  USPS,  as  with  domes(c   mail,  but  the  rules  for  prepara(on  and  sor(ng  are   different,  of  course.    The  Interna(onal  Mail  Manual   (IMM)  is  at  hNp://pe.usps.com/text/imm/welcome.htm.     •  The  rules  vary  by  class  of  mail  –  and  country  of   des(na(on.  

Using  the  USPS  

•  •  •  •  • 

• 

US  Interna(onal  Mail  Services*     fastest  interna(onal  shipping   Global  Express  Guaranteed®  (GXG®):  

service.  Interna(onal  transporta(on  &  delivery  provided  by  FedEx.   Priority  Mail  Express  Interna(onal®  :  affordable,  fast  delivery     Priority  Mail  Interna(onal®:  affordable  way  to  send  mail  and  packages     First-­‐Class  Mail  Interna(onal®:  most  affordable  op(on  for  postcards,   envelopes,  and  flats  up  to  4  lbs  and  $400  in  value   First-­‐Class  Package  Interna(onal  Service®:  economical  way  to  send   small  packages  up  to  4  lbs  and  $400  in  value.  Restric(ons  may  apply   based  on  country  des(na(on.   Airmail  M-­‐Bags™:  most  affordable  way  to  send  large  amounts  of   printed  material  interna(onally.  

*  Edited.    See  www.usps.com/interna(onal/mail-­‐shipping-­‐services.htm    

Using  the  USPS    

•  The  Interna(onal  Mail  Manual  (IMM)  is  online  and  very   specific,  with  links  to  countries  of  des(na(on.   •  For  example  the  IMM  states,   “M-­‐bags  are  defined  as  direct  sacks  of  printed  maNer  (see  261.22)  sent  to  a   single  foreign  addressee  at  a  single  address.  There  are  three  types  of  M–bags:   Airmail  M-­‐bags,  Interna(onal  Priority  Airmail  (IPA)  M-­‐bags,  and  Interna(onal   Surface  Air  Lir  (ISAL)  M-­‐bags.  All  M-­‐bags  are  subject  to  the  following   condi(ons  of  mailing:   a.  Maximum  weight  of  a  sack:  66  pounds  (including  the  tare  weight  of  the   sack).  Lower  maximum  weights  apply  to  certain  countries.  See  the   Individual  Country  .   b. Availability:  All  des(na(ons  that  are  referenced  in  the  Individual  Country   Lis(ngs  for  Airmail  M-­‐bags,  in  Exhibit  292.45   c.  for  IPA  M-­‐bags,  and  in  Exhibit  293.45  for  ISAL  M-­‐bags.   d. Iden(fica(on:  PS  Tag  158,  M–bag  Addressee  Tag,  must  be  completed  and   aNached  to  the  neck  of  the  sack.    …  “  

 

Alterna(ves  to  Doing  it  Yourself    

•  Mail  Consolidators  consolidate  mail  from  mul(ple   companies.  Postal  Qualified  Wholesalers  (PQWs)  are   mail  consolidators  authorized  by  the  USPS.   •  Extraterritorial  Offices  of  Exchange  (ETOEs)  are   operated  by  a  postal  operator  outside  its  na(onal   territory  to  aNract  business.       •  Remailers  ship  mail  as  freight  to  another  country,   clear  it  through  customs,  and  mail  it  there.    This  can   save  on  postage  and  (me  but  can  be  subject  to  mail   being  held  in  the  des(na(on  country.  

Using  a  Postal  Logis(cs  Company     Pricing,  Cost  &  Delivery  Time  Comparisons   •  Compare  rates  between  Postal  Logis(cs  Firms!    Savings   from  USPS's  public  rates  vary  for  equivalent  services.         •  The  number  of  pieces  for  each  weight  for  each  country  is   needed  for  an  es(mate.   #  pieces  x  weight  =  postal  cost    

•  The  same  method  is  rarely  used  by  different  companies   in  their  price  quota(ons.    Common  methods  include   •  per  piece  +  per  unit  of  weight   •  flat  rate  per  piece   •  flat  rate  per  piece  +  a  handling  charge  per  weight  unit   •  total  cost  of  the  mailing  with  no  break  out  

Pricing,  Cost,  Delivery  Time  Comparisons   •  Delivery  (mes  vary  with  the  mail  service  or  class   chosen,  the  des(na(on,  and  the  type  of  logis(cs   provider,  but  there  are  few  publicly  available  sta(s(cs.     1.  Home-­‐country  designated  postal  operators  consistently   provided  the  fastest  delivery  to  the  des(na(on  address.         2.  Consolidators,  bundling  items  for  mailing  through  the  home-­‐ country  designated  postal  operator,  ranked  second  (1  to  3   days  slower,  on  average)  with  savings  in  postal  costs.   3.  Remailers,  shipping  items  to  another  country  for  mailing,   provided  the  longest  (me  with  an  average  of    9  more  days   to  delivery  but  were  the  least  expensive  op(on.    

•  Mail  monitoring  is  useful  in  providing  independent   informa(on  on  delivery.  

Using  a  Postal  Logis(cs  Company   Ques(ons  to  ask  

•  Is  there  a  minimum  charge  per  country?    Are  there   surcharges  not  shown  on  the  es(mate?   •  How  might  the  final  charges  vary  from  the  es(mate?   Are  there  charges  for  returned  items?  

The  best  op(on  depends  on   •  What  are  your  goals  and  needs?   •  What  is  the  budget?   •  What  are  you  mailing?   •  What  are  the  des(na(ons?  

 

Mailing  in  a  country  is  different   from  Mailing  to  a  country     In  a  country,  their  requirements  need  to  be  met.     •  Cri(cal  Elements:      Addressing,  dimensions  of  individual   items  and  their  weights.       •  Weight:    grams  or  kilograms  not  pounds/ounces   •  Size:    millimeters  or  cen(meters  not  inches  

•  Avoid  surcharges  or  items  rejected,  check  with  the  Post.   To  a  country,  that’s  not  required   •  Offshore  prin(ng  and  mailing   •  Hybrid  mail   •  Regional  fulfillment  (agents  or  through  local  offices)   •  Free  trade  zones  (or  foreign-­‐trade  zones  or  bonded  areas)  

Undeliverable  as  Addressed  Mail     •  UAA  is  a  serious  –  and  costly  –  problem.  

 

•  USPS  es(mates  3-­‐4%  of  the  mail  is   undeliverable,  costs  about    $1.6  billion  per  year.   •  In  the  U.K.,  5.8  million  items  a  year  are   misaddressed.     •  5-­‐10%  of  all  parcels  are  incorrectly  addressed,   requiring  return  or  redelivery  aNempts,   according  to  one  Austrian  delivery  company.    

  •  Return  to  sender  services  vary  depending  on  the   country  where  the  mail  is  entered.     •  Undeliverable  as  addressed  interna(onal  leNer-­‐mail   and  parcels  for  certain  classes  of  mail  are  returned  to   the  country  where  the  postage  was  paid.    

Ge•ng  Something  Back   •  For  orders,  payments,  correspondence,    or  anything  leNers/postcard   size,  outsourcing  is  oren  easily  available.     •  For  interna(onal  order  processing  and  fulfillment  services,  consider   the  effect  of  different  (me  zones,  languages,  and  payment  methods.     •  Return  of  undeliverable  mail  may  incur  an  addi(onal  charge  or   require  special  arrangements.     •  For  merchandise  returns/parcels:     •  Payment  of  export  fees  &  import  or  re-­‐import  fees  may  be   required.    Compliance  with  license  requirements.       •  For  damaged  goods,  less  costly  to  replace  item  (no  return)?   •  For  unwanted  goods,  is  a  refund  with  no  return  less  costly?   •  Agents  who  accept  returns  of  items  &  recycle  exist  in  some  countries   for  some  categories  of  goods.  

Examples  of  Interna(onal  Reply  Mail  

Thank  you  for  your  (me.        

Merry  Law     [email protected]     Wayne  Winkler   [email protected]       410-­‐522-­‐4223