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FIELD INFORMATION KIT

Global Express Mail (GEM) European Expansion

This Global Express MailTM (GEMTM) Service European Expansion Field Information Kit contains the following items:

• Fact Sheet

• Mailing Tips

• Frequently Asked Questions - General

• Frequently Asked Questions - Retail Associates

• Rates, Fees, and Requirements

This kit replaces the information published in Postal Bulletin 22098 (3-20-03, pages 21-31).

Fact Sheet

Overview

Effective September 6, 2003, the Postal Service is expanding its agreement with Royal Mail Group's Pan- European parcel delivery company, General Logistics System (GLS), for delivery of Global Express Mail (GEM) to Europe to include Finland, Greece, and Ireland. This brings the total number of countries served by this advanced delivery system to 18.

With these additions, GEM through GLS now serves the following European countries:

Austria Germany Luxembourg Sweden
Belgium Greece Malta Switzerland
Denmark Ireland Monaco Vatican City
Finland Italy Netherlands blank
France Liechtenstein San Marino blank

GLS also delivers Global AirmailTM Parcel Post (air parcels) to these countries plus Andorra, Gibraltar, Portugal, and Spain. The postal administrations in Andorra, Gibraltar, Portugal, and Spain will continue to deliver GEM items in those countries.

Customer Opportunities

The agreement with Royal Mail/GLS will provide improved service, delivery times, and track and trace capabilities at no extra cost to the mailer. All GEM items delivered by GLS can be tracked online at www.usps.com. Just click on Track & Confirm and then enter the label number.

A discount program is available for Express Mail Corporate Account (EMCA) holders. All EMCA holders will receive a minimum 5 percent discount off GEM rates. Mailers who ship at least 600 pieces or spend $12,000 in annual postage are eligible for greater discounts.

All GEM items delivered by GLS are automatically insured against loss, damage, or rifling for up to $100 at no extra cost. Additional merchandise insurance is available up to $5,000 in value ($1.00 for each additional $100 or fraction thereof).

GEM Highlights

GEM service is designed to be delivered in 3 to 5 business days, depending on origin and destination, to more than 190 countries, with prices to Europe starting at $17.00.

Online options enable customers to print labels, pay postage, arrange pick-up service, and order supplies. For more information, visit www.usps.com (just click on Send Mail & Packages, then International Delivery Options, then Go under either "Send Mail" or "Send Packages," and then Global Express Mail), or call 800-222-1811.

Customs, Fees, and Taxes

Each destination country charges customs and administrative fees on shipments containing dutiable items. General customs information is available online at www.usps.com/global/customs.htm. For information about specific destination countries, go to www.wcoomd.org, or go to the destination country web site. For Postal Service customs information, refer to International Mail Manual (IMM), Section 123.

Mailing Tips

List of Countries That General Logistics System (GLS) Serves

GLS currently delivers GEM items to Austria, Belgium, Denmark, France, Germany, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, San Marino, Sweden, Switzerland, and Vatican City.

The three additional countries to which GLS will deliver GEM pieces effective September 6, 2003, are Finland, Greece, and Ireland.

GLS does not deliver GEM pieces to Andorra, Gibraltar, Portugal, and Spain. The postal administrations in those countries will deliver GEM items.

P.O. Box Delivery

GLS cannot deliver to P.O. boxes. Therefore, items addressed to P.O. boxes for any country listed above cannot be accepted. Please note that the Spanish notation for post office boxes is "Apartado." Those items destined for Spain with "Apartado" included in the address cannot be delivered by GLS.

Addressing

To ensure address verification and delivery coordination, the recipient's telephone number should always be included on the GEM label.

Special Services

Return receipt service for GEM items is not available to European countries served by GLS, even if the item is insured.

Weight

The weight limit for GEM items to the 18 countries served by GLS is 70 pounds.

Postage

Postage covers delivery only. Additional charges, such as duties, fees, and taxes, may be charged in the foreign country, payable by the recipient.

Customs

The destination country, not the Postal Service, determines what duties, fees, and taxes will be charged for all incoming shipments. Foreign customs have the authority to open the package and validate the customs form with the articles inside.

• Global AirmailTM Parcel Post and GEM shipments mailed by consumers and valued under €45 Euros ($50.89 as of August 4, 2003) (note that "€" is the sign for Euros) are not assessed customs duties, taxes, or an administrative fee.

• Global Airmail Parcel Post and GEM shipments mailed by consumers and valued at €45 and up to but not including €350 ($395.78 as of August 4, 2003) are assessed a combined customs duty and tax of 13.5 percent plus an administrative fee of €9.50 ($10.74 as of August 4, 2003).

• Global Airmail Parcel Post and GEM shipments valued at €350 or more are assessed as if the parcel were mailed by a business. For additional information on customs requirements and fees, visit www.usps.com/global/customs.htm and www.wcoomd.org.

If the shipment is valued at more than $300, the mailer must place two copies of an invoice inside PS Form 2976-E, Dispatch Note Envelope, containing PS Form 2976-A, Customs Declarations and Dispatch Note CP 72. A customer who does not have an invoice must write "Pro Forma Invoice" on the customs form.

Postage Payment

Encourage customers to retain their receipts. If the receipt does not contain the custom form number, Postal Service personnel should record the GEM number and customs barcoded number on the receipt.

Frequently Asked Questions - General

What's New With GEM?

Effective September 6, 2003, the Postal Service is expanding its agreement with Royal Mail Group's Pan- European parcel delivery company, General Logistics System (GLS), for delivery of Global Express Mail Service (GEM) items to include Finland, Greece, and Ireland, bringing the total number of European countries served by this transportation system to 18.

When Did the Postal Service Initially Enter Into Agreement for the Delivery of Airmail Parcels and GEM in Europe?

On October 31, 2001, the Postal Service entered into an agreement with the Royal Mail Group for the delivery of GEM in 6 countries in Europe and delivery of Global Air Parcel in 22 countries in Europe. GLS, a wholly owned subsidiary of the Royal Mail Group, makes the actual deliveries.

What Have Been the Benefits of the Agreement?

The Postal Service's agreement with GLS offers a better combination of service, price, and tracking capability to customers mailing packages to Europe. The agreement provides an integrated network for the delivery of GEM and Air Parcels in Europe and for the first time offers the ability to track and trace air parcels in addition to GEM.

How Does the Delivery Network Work?

The Postal Service transports all parcels from the United States to GLS's hub in Neuenstein, Germany. From there, GLS distributes the parcels to network countries in Europe for delivery.

What Countries Are Now Serviced by This Agreement?

The countries covered by the agreement are as follows:

GEM: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, San Marino, Sweden, Switzerland, and Vatican City.

Global Airmail Parcel Post: Andorra, Austria, Belgium, Denmark, Finland, France, Germany, Gibraltar, Greece, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Portugal, San Marino, Spain, Sweden, Switzerland, and Vatican City.

Why Did My Recipient Have to Pay to Get the Package/Letter I Sent?

All items entering a foreign country are subject to customs inspection and assessment of duties, taxes, and fees in accordance with that country's national laws. This is not new. Customs duties and taxes are assessed, generally, if the item sent is dutiable and if the value of the item is above the threshold set by the country's laws. Each country assesses customs, duties, and taxes. Check www.wcoomd.org for general information, or visit the web site of that country's customs service. In addition, GLS can charge administrative fees to facilitate customs inspection and deliveries. It is important to understand that, if duties and taxes are assessed on an item mailed via the Postal Service, they are collected from the recipient. Postage is charged to cover the cost of delivery only. Postage does not cover charges assessed by customs in the destination country.

What Can You Tell Me About the Standard Customs, Duties, and Taxes?

Consumer air parcels delivered by GLS to European countries in the European Union (EU) are subject to the following standards:

• Airmail Parcel Post and GEM shipments mailed by consumers valued under €45 ($50.89 as of August 4, 2003) are not assessed customs duties, taxes, or an administrative fee.

• Global Airmail Parcel Post and GEM shipments mailed by consumers valued at €45 and up to but not including €350 ($395.78 as of August 4, 2003) are assessed a combined customs duty and tax of approximately 13.5 percent plus an administrative fee of €9.50 ($10.74 as of August 4, 2003) for customs clearance.

• Global Airmail Parcel Post and GEM shipments mailed by consumers valued at €350 or more are assessed as if the parcel were mailed by a business.

Shipments worth more than $300 must have a commercial invoice, in duplicate, just like business shipments.

Each destination country charges customs and administrative fees on shipments containing dutiable items. General customs information is available online at www.usps.com/global/customs.htm. For information about specific destination countries, go to www.wcoomd.org, or go to the destination country website. For Postal Service customs information, refer to International Mail Manual (IMM), Section 123, Individual Country Listings.

For Malta and Switzerland, countries that are not members of the EU, all items enter as high value and may be assessed duties and taxes.

What Is an Administrative Fee?

For most countries, if duties or taxes are assessed, there also is an administrative fee, in addition to duties and taxes, that is collected from the recipient to cover the costs of clearing the item through customs.

How Do Consumers in Europe Initiate a Claim or Inquiry?

In order for recipients in European countries served by GLS to initiate a claim or inquiry, they must contact the mailer, who will initiate an inquiry, and, if required, a claim.

What Is a Customs Declaration Form?

The mailer is responsible for completing the appropriate customs declaration. It is essential that mailers using PS Form 2976-A, Customs Declaration and Dispatch Note CP 72, properly complete it. The customs declaration form is used by foreign authorities to clear mail for entry into their country and, when appropriate, assess duties and taxes. Failure to fully and accurately complete the customs declaration form may result in the delay of the mail, inconvenience to the recipient, or the incorrect assessment of duties and taxes.

All business air parcels must include a commercial invoice, in duplicate, in addition to the postal customs declaration form. The mailer must place this invoice inside PS Form 2976-E, Dispatch Note Envelope, with the customs declaration. Shipments not having commercial invoices may be delayed or returned to the mailer.

Frequently Asked Questions - Retail Associates

With the Expansion of GEM, How Is This Going to Affect Me in Terms of Current Retail Acceptance Procedures?

Return receipt service for GEM items is no longer available to Finland, Greece, and Ireland. Depending on the country, the maximum size and weight dimensions may have changed. We will provide service descriptions and postage rates for these new countries through POS and IRT and through International Mail Manual (IMM) updates and Postal Bulletin announcements. The administrative fee for GEM items delivered into Finland, Greece, and Ireland will be €9.50 ($10.74 as of August 4, 2003), the same as other European countries covered under the GLS agreement.

Also, it is important to remind customers to read and complete the customs declaration form, and that applicable duties and fees are assessed by customs in the destination country and are due at delivery.

What Benefits Have Customers Experienced With the Expansion of the GLS Contract?

Customers have experienced more reliable and consistent service. They now also have the ability to track GEM items delivered by GLS at www.usps.com. Just click on Track & Confirm and then enter the label number.

What Countries Are Now Included in the Agreement With GLS?

GEM: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, San Marino, Sweden, Switzerland, and Vatican City.

Global Airmail Parcel Post: Andorra, Austria, Belgium, Denmark, Finland, France, Germany, Gibraltar, Greece, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Portugal, San Marino, Spain, Sweden, Switzerland, and Vatican City.

What Special Services Are Available With GEM?

Each GEM item is insured against loss, damage, or rifling for up to $100 at no extra cost. Customers can purchase additional merchandise insurance up to a maximum value of $5,000 (the cost is $1.00 for each $100 or fraction thereof above the first $100 in value), but document reconstruction insurance above $100 is not available. No return receipt service is offered to the 18 European countries served by GLS.

Will Retail Associates Be Required to Go Online to Check Status of Packages for Customers?

No.

Will There Be Any Changes to the Current Dispatch Procedures for GEM? Will Global Mail Now Have to Be Separated From Domestic Express Mail at Retail Units?

No.

Can GEM Be Mailed to P.O. Boxes?

GEM can be delivered to P.O. boxes in all countries except those served by GLS. GLS is a postal delivery agent and as such cannot deliver to P.O. boxes. Only postal administrations can deliver to P.O. boxes. Please note that the Spanish notation for post office boxes is "Apartado." Those items destined for Spain with "Apartado" included in the address cannot be delivered by GLS.

What Are the Delivery Standards for GEM? Is the Service Now Guaranteed?

GEM service is designed to be delivered in 3 to 5 business days, depending on origin and destination. GEM Service is not guaranteed.

Will There Be a Price Increase on GEM Items Delivered by GLS?

There will be no rate changes for GEM items delivered by GLS.

Will There Be Other Service Changes?

The weight limit for GEM items to all 18 European countries served by GLS will be 70 pounds.

What Other International Mail Will Be Delivered by GLS? Will There Be Changes to Other International Mail Because of the New Transportation Agreement?

GLS is delivering only GEM and Global Airmail Parcels.

Are GEM Discounts Available to Volume Mailers?

Customers with an Express Mail Corporate Account (EMCA) receive 5 percent off postage on all GEM shipments paid by their EMCA. With the Global Package Discount Program, mailers who ship at least 600 pieces or $12,000 in postage annually might be eligible for even higher discounts. Customers can get more information at 800-843-8777 (800-THE-USPS), ext. GD2449.

Rates, Fees, and Requirements

Requirements for All Countries

• Weight limit: 70 pounds

• Maximum length: 79 inches

• Maximum length and girth combined: 108 inches

• Delivery cannot be made to P.O. boxes.

• A local telephone number for the addressee should be provided.

• An invoice, in duplicate, is required for all commercial shipments regardless of value and for all personal shipments valued at $300 or more.

• The mailer must affix an invoice to the outside of the parcel or enclose it in PS Form 2976-E with the customs declaration.

Changes and Additions

• Depending on the country, maximum size and weight dimensions and the need for commercial invoices may have changed.

• Return receipt service for GEM items is no longer available to Finland, Greece, and Ireland.

Rate Group 6

Countries: France, Ireland, and Luxembourg.

Global Express Mail (See IMM 220)

Weight Not Over (lbs.) Rate Weight Not Over (lbs.) Rate Weight Not Over (lbs.) Rate
0.5 $17.00 6 $34.95 12 $53.55
1 19.15 7 38.05 13 56.65
2 21.65 8 41.15 14 59.75
3 24.95 9 44.25 15 62.85
4 28.15 10 47.35 16 65.95
5 31.85 11 50.45 17 69.05
For each additional pound or fraction add: $3.10
Weight Limit: 70 lbs.

Rate Group 7

Countries: Austria, Belgium, Denmark, Finland, Germany, Greece, Italy, Liechtenstein, Malta, Netherlands, San Marino, Sweden, Switzerland, and Vatican City.

Global Express Mail (See IMM 220)

Weight Not Over (lbs.) Rate Weight Not Over (lbs.) Rate Weight Not Over (lbs.) Rate
0.5 $23.00 6 $41.20 12 $60.40
1 26.00 7 44.40 13 63.60
2 29.00 8 47.60 14 66.80
3 32.00 9 50.80 15 70.00
4 35.00 10 54.00 16 73.20
5 38.00 11 57.20 17 76.40
For each additional pound or fraction add: $3.20
Weight Limit: 70 lbs.

For detailed information for GEM service for each country, see the Individual Country Listing in the IMM.

- International Marketing,
International Business, 8-21-03