The Postal Service is continuing its long-term strategy of becoming a premier world-class global logistics services provider by enhancing international mailing products, creating new and strengthening existing bilateral contracts with partner postal operators worldwide and aggressively marketing its global services to customers throughout the United States and abroad.
First and foremost in these efforts are the goals of increasing net revenues for the organization and providing the highest service standards possible. Due to current international conditions, USPS Global Business is also offering its fullest cooperation in areas ranging from customs compliance to export trade regulation in an effort to promote international security measures which protect American interests while fostering international commerce.
Ongoing Bilateral Agreements. In the Asia/Pacific region, bilateral contracts with the postal operators of China, Hong Kong and Singapore were renewed during 2013, and a new contract with Korea is expected to start in March 2014. Other bilateral agreements either signed during the year, under review, or in the renewal process pipeline include Australia, Canada, Germany, the Netherlands, Norway and Vietnam.
First-Class Package International Service Click-n-Ship. Efforts to make international mailing easier and more customer-friendly continue within the Postal Service. During this fiscal year, for the first time customers may now purchase online First–Class Package International Service Click–n–Ship, in which lightweight packages (under 4 lbs.) can be mailed to over 180 countries. The new option joins the existing international Click-n-Ship services for Global Express Guaranteed (GXG) Mail, Priority Mail Express International, and Priority Mail International.
Priority Mail International (PMI) Regional Rate Box. A new service called PMI Regional Rate Box was introduced. The Priority Mail International Regional Rate Box is a complimentary service to the USPS Domestic Regional Rate Box, and encourages heavier shipments by customers who appreciate the convenience of flat rate pricing and free packaging supplies. This product is both e-commerce compatible and cost-effective.
Improved Customs Border Protection Manifesting System (CBPMAN). As a provision of the Postal Accountability and Enhancement Act (PAEA) of 2006, all Priority Mail Express International, Priority Mail International, and First-Class Mail International parcel shipments which require a customs form must be entered into the U.S. Customs Border Protection Manifesting System (CBPMAN). The two electronic forms relating to this process have been streamlined to reduce customer wait time and create greater efficiencies at the retail sales level. The United States Postal Service is leading the way to ensure that all existing measures of international security are promoted and maintained in order to protect and promote global growth in shipping.
New Commercial Outbound ePacket Service. At the beginning of the fiscal year, USPS launched a commercial outbound ePacket service for First-Class Package International Service items weighing up to 4 pounds. This service, available to commercial mailing customers only, targets the rapidly growing lightweight cross-border ecommerce market segment by providing electronic tracking to select destination countries. We will expand the service to additional countries throughout 2013 and beyond. Expansion countries have high growth rates in the e-commerce market, and we expect to see continued volume and revenue growth into 2014.
Enhanced First-Class Package International Service. In January 2013, Global Business enhanced our service to Canada by providing tracking on First-Class Package International Service (FCPIS) items mailed with online generated shipping labels. This new feature reaches lightweight cross-border shippers and businesses in the general public, including e-commerce related businesses. On July 28, this service was expanded to an additional 13 countries, representing approximately 90 percent of all of our online generated FCPIS volume. We expect to see growth for this product in 2014.
USPS International Merchandise Return Service (IMRS). As of August 2013, International Merchandise Return Service (IMRS) became available to customers for returns from Canada and Australia. IMRS is a trackable inbound return service for merchandise up to 66 pounds that uses the online generation of “no postage necessary” shipping labels and customs declarations. The IMRS solution simplifies the return process for the overseas buyer by eliminating the need to pay postage when tendering the return package to the overseas post. The buyer simply applies the label to the package and tenders it to the post, and the U.S. merchant is charged when the product arrives at the USPS delivery Post Office. We anticipate increasing volume and additional participating countries throughout 2014.
Global Direct Entry (GDE) Wholesaler Program. USPS first entered the inbound ecommerce arena by formally launching the Global Direct Entry (GDE) Wholesaler Program in the third quarter of 2013. Similar to the long established Postal Qualified Wholesaler Program, the GDE Wholesaler Program requires commercial wholesalers, who work closely with Global Business and customers, to collect shipments from overseas locations, transport them to the U.S., clear them through U.S. Customs, and enter them into the domestic USPS system for delivery. The wholesaler must ensure that the shipments are prepared in accordance with all applicable requirements and are manifested and labeled in accordance with the service type being used.
There are stringent requirements that a wholesaler must satisfy in order to be certified by the USPS, approved to enter into the GDE Wholesaler Program and be listed in the Mailing Standards of the United States Postal Service, International Mail Manual (IMM) as one of the select few participants. There are currently 5 GDE wholesalers listed in the IMM, and FY2013 revenue have exceeded $4 million.
