2. Product/Rate Restructuring
On January 7, 2001, new restructured international product lines and prices were introduced to make it easier to do business with the Postal Service. Content-based rate distinctions were eliminated for retail customers and our product lines were reorganized according to delivery speed. Pricing anomalies that have confused customers and employees were eliminated; our prices now clearly reflect differences in delivery speed and reliability. The rates most international mailers pay were simplified. Twelve different rates for documents weighing 1 ounce or less were replaced by two rates: 60 cents for North America and 80 cents for the rest of the world. Other changes were made to the international rates to ensure appropriate levels of cost coverage. Categories of mail that have consistently lost money or that cannot be offered at reasonable prices given the level of service were eliminated. International rates have always been organized by groups of countries to reflect differences in transportation and foreign delivery costs. These country groupings were updated to reflect significant changes in foreign delivery charges set by the Universal Postal Union.