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FIELD INFORMATION KIT

Global Express Mail With Guarantee Service

This information kit is designed to inform Postal ServiceTM employees about a service enhancement to Global Express Mail® service. This enhancement - Global Express Mail with Guarantee service (also called "GEM® with Guarantee service") - offers a date-certain, money- back guarantee for items sent to five Pacific Rim countries and territories: Australia, China, Hong Kong, Japan, and the Republic of Korea (South Korea). This kit contains the following materials:

• Briefing Article.

• Fact Sheet.

• Talking Points.

• Frequently Asked Questions.

• Stand-Up Talk for Retail Associates.

• Refund Procedures.

Briefing Article

On July 26, 2005, the Postal Service began a service enhancement to Global Express Mail service. This enhancement - Global Express Mail with Guarantee service (also called "GEM with Guarantee service") - offers a date-certain, money-back guarantee for items sent to five Pacific Rim countries and territories: Australia, China, Hong Kong, Japan, and the Republic of Korea (South Korea). GEM with Guarantee service provides delivery within 5-7 days depending on the destination. The money- back guarantee provides a postage refund when the mailpiece is not delivered by the date-certain time provided at the time of acceptance.

This new offering provides global mailers with one more choice in the suite of international expedited products offered by the Postal Service. Depending on need, international mailers can choose from these options for sending their important documents and packages:

Fastest: Global Express Guaranteed® (GXGTM) in 1-3 days with date-certain, money-back delivery guarantee to major metropolitan areas worldwide.

Faster: Global Express Mail (GEM) in 3-5 days to Canada and Western Europe, and 5-7 days to Pacific Rim countries and territories.

Fast: Global Priority Mail® (GPM).

Adding GEM with Guarantee service to the international product line is another way the Postal Service is working to provide easy and convenient solutions to meet customer needs.

Fact Sheet

Service Start Date

GEM with Guarantee service became available beginning July 26, 2005, at Post OfficeTM locations with POS ONE and IRT systems.

Service Description

GEM with Guarantee service provides a date-certain, money-back guarantee for expedited service to five Pacific Rim countries and territories: Australia, China, Hong Kong, Japan, and the Republic of Korea (South Korea). The service is available from all origin points within the 50 United States, Puerto Rico, and the U.S. Virgin Islands. It is not available from APOs/FPOs, Guam, and other Pacific territories and possessions. GEM with Guarantee service is an expedited service that includes tracking. Additional available services include Carrier PickupTM service and insurance.

Service Guarantee

GEM with Guarantee service provides that the customer may be eligible for a postage refund if a mailpiece is not delivered by the date guaranteed at the time of acceptance.

Refunds

Customers seeking refunds must have either the POS ONE receipt or a copy of the Express Mail® label as proof of purchase. To get information on how to request a refund, customers should call the USPS® call center at 800-222-1811 (for easy reference, the call center's phone number is printed at the bottom of the label). The call center issues a refund form for the customer to complete and mail back for payment. Local Post Offices will not issue any postage refunds for GEM with Guarantee service.

Talking Points

Use the following talking points to promote GEM with Guarantee service to potential customers.

• Six of the world's leading postal services have formed an integrated network that offers a date- certain, affordable, international express service linking Australia, China, Hong Kong, Japan, the Republic of Korea, and the United States. The product offering from the United States Postal Service® is Global Express Mail with Guarantee service (also called "GEM with Guarantee service").

• The six postal services (Australia Post, China Post, Hongkong Post, Japan Post, Korea Post, and the United States Postal Service) offer their customers a powerful shipping alternative for their express package needs.

• Among the six postal services, this new level of express service provides enhanced reliability and convenience that links 261 million delivery points, including businesses and households.

• Reliability is the basis for this network. All six postal services have committed to strict quality control to provide a united "single" network. This provides peace of mind to customers and seamless package delivery.

• Customers can track their shipments' progress - from origin to destination - online through a Web site link or by contacting a customer service hotline.

• The integrated network offers proof of delivery for shipments of documents, merchandise, or other packages.

• "Pick up" service, whether scheduled or on-demand, is available.

• With extensive network coverage in these key international marketplaces, no other delivery company in Asia today can match this capacity or expertise.

• The price for GEM with Guarantee service offered by the Postal Service is competitive and generally lower than the competition's products and includes no hidden surcharges. GEM with Guarantee service is expected to particularly help business customers expand locally and globally by providing one of the most reliable, professional, and cost-effective services to Pacific Rim countries and territories.

Frequently Asked Questions

1. What is Global Express Mail with Guarantee service?

Global Express Mail with Guarantee service (also called "GEM with Guarantee service") is a service enhancement to Global Express Mail service. The Postal Service is now offering a date-certain, money-back guarantee for Global Express Mail pieces sent to the following five destinations:

• Australia.

• China.

• Hong Kong.

• Japan.

• Republic of Korea (South Korea).

2. What does the guarantee mean?

If a GEM with Guarantee item isn't delivered by the guaranteed date, the customer may be eligible for a postage refund.

3. How do customers get a postage refund?

At the end of a GEM with Guarantee transaction to Australia, China, Hong Kong, Japan, or the Republic of Korea, the retail associate should advise the customer to hold on to the mailing receipt as proof of purchase and to contact the number printed at the bottom of the receipt to obtain information on postage refunds (if needed).

Note: A customer who seeks a refund for GEM with Guarantee service to Australia, China, Hong Kong, Japan, or the Republic of Korea should call the USPS call center at 800-222-1811. The call center will issue a refund form for the customer to complete and mail back for payment. Local Post Offices will not issue any postage refunds for GEM with Guarantee service.

4. Why can't customers collect their postage refund for GEM with Guarantee service at local Post Offices?

Customers must contact the USPS call center at 800-222-1811 because the call center will verify whether the item was delivered late and whether the customer is entitled to a refund.

The Postal Service needs to account for GEM with Guarantee refund payments separately. The agreement with the participating postal administrations allows the Postal Service to be reimbursed for a certain number of refunds. To receive reimbursement from the other postal administrations, the Postal Service must be able to identify refunds that relate to a service failure for GEM with Guarantee items in order to submit them for reimbursement.

This refund process has advantages for the customer, too. The accounting process is structured to pay the refund to the customer within 7 business days after the Postal Service has received the completed documents from the customer. It also allows the Postal Service to keep refund costs low because reimbursements from the other postal administrations pay for some of the refunds.

5. How do retail associates know whether a GEM with Guarantee transaction to the five destinations is guaranteed?

When a retail associate sells GEM with Guarantee service to Australia, China, Hong Kong, Japan, or the Republic of Korea, the POS program guides them through the transaction. POS asks the retail associate to enter the postal code of the city to which the mailpiece is addressed. This information allows POS to determine whether the transaction is guaranteed. For most destinations, POS provides a guaranteed delivery date, but there are a few destinations (mainly in the very rural parts of China) for which a guarantee is not available. In those cases, POS indicates that a guarantee is not available but offers the retail associate the opportunity to proceed with the transaction as a regular GEM transaction without a guarantee. There should be very few transactions for which POS does not return a guaranteed delivery date for GEM with Guarantee service to the five countries and territories.

On POS, for all GEM with Guarantee transactions, the guaranteed date is printed on the mailing receipt. If any U.S. or foreign holidays occur during the delivery time frame, the receipt indicates how the delivery date is affected. This information is helpful to the customer and the retail associate.

6. Can customers track their GEM with Guarantee packages?

Yes, customers can find the delivery status of GEM with Guarantee items either by going online to www.usps.com or by calling the USPS call center at 800-222-1811.

7. What does "date-certain" mean?

"Date-certain" means delivery on or before the specific date provided at the time of acceptance.

8. What makes GEM with Guarantee service different from the existing Global Express Mail service still available to many locations?

Tracking, reliability, and a money-back guarantee are the key features that distinguish GEM with Guarantee service from Global Express Mail service.

9. Is Carrier Pickup service available for GEM with Guarantee service?

Yes, Carrier Pickup service is available for GEM with Guarantee service.

10. What benefits would customers receive from using GEM with Guarantee service?

For customers, GEM with Guarantee service is easy, reliable, and cost effective. The service offers proof of delivery, and both the shipper and the recipient know where the item is throughout the delivery process from origin to destination. Customers are able to track their packages either by going online to www.usps.com or by calling the USPS call center at 800-222-1811.

11. What is the value to a customer for using GEM with Guarantee service compared with a commercial carrier?

By using GEM with Guarantee service, businesses can save as much as 60 percent of their courier costs.

12. Is there an extra charge for tracking GEM with Guarantee items?

No, tracking is included in the price for GEM with Guarantee service. Customers are able to track their packages either by going online to www.usps.com or by calling the USPS call center at 800-222-1811.

Stand-Up Talk for Retail Associates

On July 26, 2005, the Postal Service began a service enhancement to Global Express Mail service. This enhancement - Global Express Mail with Guarantee service (also called "GEM with Guarantee service") - offers a date-certain, money-back guarantee for items sent to five Pacific Rim countries and territories: Australia, China, Hong Kong, Japan, and the Republic of Korea (South Korea). GEM with Guarantee service provides delivery within 5-7 days depending on the destination. The money- back guarantee provides a postage refund when the mailpiece is not delivered by the date-certain time provided at the time of acceptance.

At POS ONE and IRT sites, GEM with Guarantee service is available to the five Pacific Rim countries and territories from all origins within the 50 United States, Puerto Rico, and the U.S. Virgin Islands. The service is not available from APOs/FPOs or from Guam and other Pacific territories and possessions.

When a GEM with Guarantee transaction, including Collection Mode transactions, to the five countries and territories is initiated, the POS ONE system automatically accesses the GEM with Guarantee Web site, which uses the originating ZIP CodeTM and destination postal code to calculate the transit time and generate the guaranteed delivery date. The guaranteed date is printed on the mailing receipt. If any U.S. or foreign holidays occur during the delivery time frame, the information printed on the receipt indicates how the delivery date is affected.

At the end of a GEM with Guarantee transaction to Australia, China, Hong Kong, Japan, or the Republic of Korea, the retail associate should advise the customer to hold on to the mailing receipt as proof of purchase and to contact the number printed at the bottom of the receipt to obtain information on postage refunds (if needed).

The price for GEM with Guarantee service is generally lower than our competition's products and includes no hidden surcharges. Our product offering is expected to particularly help business customers expand locally and globally by providing one of the most reliable, professional, and cost-effective services to the five Pacific Rim countries and territories.

Adding GEM with Guarantee service to our international product line is another way the Postal Service is working to provide easy and convenient solutions to meet customer needs.

Refund Procedures

This section presents general information on handling refunds.

1. To request a refund, the customer calls the USPS call center at 800-222-1811.

2. The call center agent asks the customer for the GEM with Guarantee item number (the barcode number on the GEM label).

3. Based on the GEM number, the agent researches the delivery status of the package. If the package was delivered late and for reasons outside the control of the Postal Service (natural disasters or packages being held (and delayed) in foreign Customs), the agent issues a refund form and mails it to the customer.

4. Upon receiving the refund form, the customer signs the refund form, attaches either the POS mailing receipt or GEM label to the form, and mails it to the address on the refund form.

5. The scanning center transmits the electronic file (a picture of the refund form and receipt) to the Accounting Service Center in San Mateo, CA.

6. If the Accounting Service Center verifies the information, it authorizes payment and sends an authorization file to the Accounts Payable/Accounts Receivable System (APARS) and to the Kahala Post Group Refund Reconciliation System (KPGRRS).

7. APARS receives the payment information and issues a check for the postage to the customer. APARS submits an electronic file with the payment information to KPGRRS, which reconciles the information from APARS and the Accounting Service Center to ensure that the proper amount is refunded to the customer and to provide the Postal Service the opportunity to seek reimbursement from other postal administrations.

8. As per the Kahala agreement, the Postal Service is required to process and pay a postage refund within 7 business days after receiving the refund form from the customer.

For all refund-related questions, the retail associate should instruct the customer to call the USPS call center at 800-222-1811.

— International Product Development,
Product Development, 8-4-05