In May 2007, we completed a major restructuring of our international services by streamlining the international mail offerings and more closely aligning each international service with its domestic counterpart. At this time, only a limited number of structural changes to the international product line in addition to the price changes are necessary. Except for First-Class Mail International items, all other international products are shipping services products.
Published GXG prices will increase 5.2 percent, on average. We continue to offer a 10 percent reduction (now referred to as commercial base prices) for customers who use Click-N-Ship service, and customers who are registered users of PC Postage service.
Prices for Express Mail International service will increase by 6 percent, on average. Customers using Click-N-Ship service and customers who are registered users of PC Postage will continue to be eligible for commercial base prices 8 percent below retail prices.
We are expanding commercial base prices to include customers paying postage through an EMCA or permit imprint advance deposit account and using USPS-provided Global Shipping Software (GSS) for mail preparation and Customs-related functions. Customers using permit imprint must meet manifesting and permit imprint requirements. Permit imprint does not qualify for any service or postage guarantees.
In addition, we are adding commercial volume prices for customers who pay postage through an EMCA and use approved software:
A customer will receive an incentive of 8 percent during the first postal quarter of the initial mailing and through the subsequent full postal quarter. Thereafter, the incentive for each postal quarter will be determined by the actual annualized volume or amount of postage paid for Express Mail International items mailed in the previous full postal quarter.
We will continue to offer additional volume pricing through customized agreements.
Priority Mail International prices will increase by 6.1 percent, on average. Price increases vary by country group and weight increments. Prices for the flat-rate envelope and regular flat-rate box also will increase. The larger flat-rate box introduced March 3 remains unchanged, priced at $29.95 to Canada and Mexico and $49.95 to all other countries. Customers using Click-N-Ship or PC Postage service will continue to be eligible for commercial base prices 5 percent below retail prices.
We are expanding commercial base prices to include customers who pay for postage through a permit imprint advance deposit account and use USPS-provided GSS for mail preparation and Customs-related functions. We will continue to offer volume pricing through customized agreements.
IPA service meets the needs of international business mailers for a service that is faster and more economical than regular First-Class Mail International. Prices for IPA increase by 12.5 percent and will continue to be calculated by piece and pound. There are new prices, but the pricing structure is unchanged. Incentives based on volume offered through customized agreements will continue to be available for IPA customers.
ISAL service provides expedited dispatch and transportation for all types of First-Class Mail International items weighing up to 4 pounds. ISAL prices increase by 21.3 percent. Published prices for ISAL Direct Shipment are eliminated and only available through customized agreements.
IPA and ISAL service will continue to have per-piece, full-service per-pound and drop-ship per-pound published prices. We will continue to have full-service and drop-ship prices for IPA and ISAL M-Bags.
We are introducing new country price groups for First-Class Mail International M-Bags (direct sacks to one addressee). These changes reflect the nine country price groups for First-Class Mail International service.
The classification changes and new pricing for M-Bags and IPA service, as well as ISAL service, enhance efficiency and align the products with each other.
First-Class Mail International - Retail