[Federal Register Volume 59, Number 245 (Thursday, December 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31373]
[[Page Unknown]]
[Federal Register: December 22, 1994]
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POSTAL SERVICE
39 CFR Part 20
Implementation of International Package Consignment Service
AGENCY: Postal Service.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: International Package Consignment Service (IPCS) is an
international mail service designed for mail order companies sending
merchandise packages to other countries. The service will be available
initially to Japan; Canada will be added as a destination country in
the near future. If feasible, other destination countries will be added
as customer needs dictate. To use IPCS, a customer will be required to
mail at least 25,000 packages in 1 year to each country to which it
wants to use the service, and to agree to link its information systems
with the Postal Service's so that the Postal Service can extract
certain information about the contents of the customer's packages for
customs clearance and other purposes. The implementation of IPCS will
benefit U.S. mail order companies and other customers that export goods
by making it easier and less costly to do so; and all other users of
the Postal Service by increasing the total contribution to fixed costs
realized by the Postal Service from its international operations.
Interim implementing regulations have been developed and are set forth
below for comment and suggested revision prior to adoption in final
form.
DATES: The interim regulations take effect as of December 1, 1994.
Comments must be received on or before January 31, 1995.
ADDRESSES: Written comments should be mailed or delivered to
International Product Management, U.S. Postal Service, 475 L'Enfant
Plaza SW, room 5300, Washington, DC 20260-2410. Copies of all written
comments will be available for public inspection and photocopying
between 9 a.m. and 4 p.m., Monday through Friday, at the above address.
FOR FURTHER INFORMATION CONTACT: Michael Sundel, (202) 268-2985.
SUPPLEMENTARY INFORMATION:
I. Introduction
With the exception of its International Surface Air Lift (ISAL) and
International Priority Airmail (IPA) services for small packets, which
have 4-pound weight limits, and VALUEPOST/CANADA service for small
packets, which has a 2-pound weight limit, the Postal Service currently
does not offer any bulk international service for customers sending
packages containing merchandise to other countries. As a result, if
those customers want to accomplish delivery through the mail, their
only option is to use one of the Postal Service's single-piece
international services: Air Parcel Post, Surface Parcel Post, or
Express Mail International Service (EMS). These services are available
to customers mailing as little as one package from anywhere in the
United States and are designed and priced accordingly. They provide the
features generally desired by household and small business mailers but
do not necessarily provide the features needed by medium- or large-size
business mailers that actively solicit customers in other countries and
require a reliable and cost-effective means of sending large volumes of
merchandise from the United States to their international customers.
During the past few years, many customers that traditionally have
used international mail to send merchandise packages to other countries
have sought more convenient and/or less costly delivery methods. This
has been especially true for customers sending packages to Canada,
where the combination of relatively cumbersome customs treatment for
U.S.-origin international mail and Canada Post Corporation's practice
of encouraging U.S. businesses to freight their merchandise packages to
Canada and enter them as domestic mail has caused the Postal Service's
existing services to appear increasingly unattractive as delivery
methods.
Two factors in particular make customs clearance of U.S.-origin
mail in Canada cumbersome for companies sending merchandise packages.
First, the value threshold at which Revenue Canada rates inbound
merchandise packages for duties and taxes is lower than the
corresponding threshold used by most other industrialized nations'
customs agencies. Thus, a relatively high proportion of merchandise
packages mailed from the United States to Canada are assessed for
duties and taxes. Second, as happens generally with international mail,
any duties and taxes that have been assessed are collected from the
addressee at the time of delivery. However, in the case of Canada,
Canada Post Corporation charges the addressee a customs collection fee
of $5 Canadian. In contrast, merchandise packages that clear Canadian
customs as freight can be delivered to the addressee completely
prepaid, without the need to collect duties, taxes, and fees at the
time of delivery.
In addition, customers exporting merchandise to Japan have seen
their businesses there detrimentally affected by the costs they must
incur to send merchandise from the United States to Japan. Mail order
companies that pass their delivery costs directly on to their Japanese
customers generally are less likely to receive orders as those costs
increase. As a result, even those customers that have continued to use
the Postal Service to send merchandise packages to Japan are
continually searching for better and cheaper delivery methods.
Section 403(b)(2) of the Postal Reorganization Act, 39 U.S.C.
403(b)(2), makes it the responsibility of the Postal Service ``to
provide types of mail service to meet the needs of different categories
of mail and mail users.'' One of the most important manifestations of
this responsibility in the international area are services that enhance
the ability of U.S. companies to do business in other countries. That
can be accomplished both by simplifying the process those companies use
to prepare their packages for mailing and by reducing the costs those
companies incur to mail merchandise to other countries. However, the
Postal Service's existing international services for merchandise
packages require those companies to pay the same postage rates as all
other customers pay even though very different Postal Service
operations may be involved.
II. International Package Consignment Service
A. Rationale
In order more closely to meet the needs of mail order companies and
other customers that send merchandise packages from the United States
to multiple international addressees, the Postal Service is
implementing a new international service, International Package
Consignment Service (IPCS). Initially, the service will be available
only to Japan. The Postal Service anticipates offering IPCS to Canada
in the near future. To the extent feasible, the Postal Service will
expand the service to include other destination countries in response
to requests from customers. In this regard, the Postal Service
specifically requests comments from customers regarding the need for
IPCS to destination countries other than Japan and Canada.
In addition to making it easier and less costly for U.S. mail order
companies and other customers to export goods, the implementation of
IPCS will benefit all users of the Postal Service's other services by
decreasing the total revenues that the Postal Service needs to recover
from them. Offering IPCS makes all Postal Service customers better off
because the additional business generated not only covers the extra
variable costs it causes, but also enables the Postal Service to
recover its fixed costs from a larger base of customers.
B. Qualifying Criteria
A customer that wants to use IPCS will be required to enter into a
service agreement with the Postal Service providing for the following.
First, the customer must commit to mail at least 25,000 packages
through the service during the next 12 months to each destination
country to which it wants to use IPCS. Second, the customer must
designate the Postal Service as its carrier of choice to each
destination country to which it wants to use IPCS. Third, the customer
must agree to link its information systems with the Postal Service's so
that (1) the Postal Service and the customer can exchange data
transmissions concerning the customer's packages, and (2) by scanning
the customer-provided barcode on each package, the Postal Service can
extract, on an as-needed basis, certain information about the package.
In general, the information that must be made available to the
Postal Service includes: the order number; the package identification
number; the buyer's name and address; the recipient's name and address;
the total weight of the package; the total value of the package; the
number of items in the package; and, for each item in the package, its
SKU number, its value, and its country of origin. The exact information
required will vary, depending on the destination country to which the
packages are sent. In practice, this requirement means that the
customer will have to begin the necessary systems work by the time it
begins using IPCS, and then will have to assist the Postal Service in
completing and maintaining the information systems linkages. The Postal
Service will use the extracted information to prepare any necessary
customs forms and package labels, to accept the customer's mail and
verify postage payment automatically, and to provide user-friendly
tracking and tracing.
In addition to these required commitments, which must appear in all
IPCS service agreements, arrangements between the Postal Service and
the customer that are technical in nature also may appear in the IPCS
service agreement. For instance, the service agreement may describe the
EDI or proprietary file format that will be used to transmit data
between the customer and the Postal Service, as well as the frequency
and schedule of transmissions. Similarly, the service agreement may
describe the formats and frequencies for any exception and performance
reports that the Postal Service will provide to the customer.
The IPCS service agreement will not define the basic terms and
conditions of the service, or the rates that the customer will pay. As
discussed below, IPCS is not a customized service. All customers that
use IPCS will be offered the same rates and will receive the same
delivery services. New regulations in International Mail Manual (IMM)
620 establish IPCS and make it generally available at published rates.
III. IPCS to Japan
A. JFK Processing Facility
Because of (1) the greater availability of direct air
transportation to Japan from JFK International Airport compared with
that available from other airports; (2) the efficiencies created by the
Postal Service's being able to process all IPCS mail to Japan at a
single facility designed for that purpose; (3) the efficiencies created
by the Postal Service's being able to dispatch all IPCS mail to Japan
from a single facility designed for that purpose; and (4) general
operational and managerial considerations, the Postal Service has
determined that all IPCS mail to Japan should be processed at, and
dispatched from, a dedicated facility located at JFK International
Airport (the JFK Processing Facility).
If the plant at which the customer's packages originate is located
within 500 miles of JFK International Airport, the Postal Service will
accept the packages at the plant and transport them by truck to the JFK
Processing Facility according to a schedule agreed upon by the Postal
Service and the customer. If the customer's plant is located more than
500 miles from JFK International Airport, the customer will be required
to present the packages to the Postal Service for verification at the
plant and transport them as a drop shipment to the JFK Processing
Facility according to a schedule agreed upon by the Postal Service and
the customer. The Postal Service is imposing this requirement because
the IPCS customer will be in a better position than the Postal Service
to arrange for cost-effective air or long-haul surface transportation
that meets the customer's package preparation schedule and other
operational requirements. Although the Postal Service initially will
require all IPCS mail to Japan to be brought to the JFK Processing
Facility, the Postal Service specifically requests comments from
customers regarding the need for an additional processing site in
another part of the country, such as the Seattle or San Francisco
metropolitan areas.
B. Customs Forms
Packages mailed to Japan through IPCS will not be required to bear
customs forms when they are tendered to the Postal Service. After
scanning the customer-printed barcode on each package and correlating
it with the package-specific information transmitted by the customer,
the Postal Service will print the necessary customs forms and then
affix them to the customer's packages as part of the processing
operation at the JFK Processing Facility. However, during the interim
period in which the Postal Service and the customer are working
together to establish the information systems linkages to enable the
Postal Service to accomplish this, the customer will be required to
prepare the necessary customs forms on its own and affix the forms to
the packages before tendering them to the Postal Service.
C. Delivery Options
Within the framework of IPCS to Japan, the Postal Service will
offer three delivery options: Express Service, Standard Air Service,
and Economy Air Service. While the weight limit for Express Service and
Standard Air Service packages will be 44 pounds, the weight limit for
Economy Air Service packages will be 4 pounds.
Express Service will be the fastest option and will provide
tracking and tracing and insurance at no additional cost. The Postal
Service will transport Express Service packages to Japan by air, where
they will receive special handling by Japan Post and expedited
delivery. Each package sent by this option must bear a label
identifying it as an Express Service package (Label 11-B, Express Mail
Service Post Office to Addressee, or an alternative label acceptable to
Japan Post). Before or after scanning the customer-printed barcode on
each package and correlating it with the package-specific information
transmitted by the customer, the Postal Service will prepare the
necessary labels and affix them to the customer's Express Service
packages as part of the processing operation at the JFK Processing
Facility. However, during the interim period in which the Postal
Service and the customer are working together to establish the
information systems linkages to enable the Postal Service to accomplish
this, the customer will be able to use Express Service by preparing the
necessary labels on its own and affixing the labels to the packages
before tendering them to the Postal Service.
Standard Air Service will be the next fastest delivery option and
will provide confirmation of dispatch from the United States.
Insurance will be available for Standard Air Service packages
weighing more than 1 pound at an additional cost. The Postal Service
will transport Standard Air Service packages by air to Japan, where
they will enter Japan Post's domestic airmail system for delivery.
Economy Air Service will be the slowest delivery option and will
provide confirmation of dispatch from the United States. No insurance
will be available for Economy Air Service packages. The Postal Service
will transport Economy Air Packages by air to Japan, where they will
enter Japan Post's domestic surface mail system for delivery.
D. Rates
The base rates for the three delivery options are set forth below.
The base rates may be reduced by any or all of four additive annual
discounts depending on how many packages the customer mails to Japan
through IPCS.
For each delivery option, the Postal Service will charge the base
rates, at 1-pound increments, for the first 100,000 packages mailed by
the customer during the 12-month period. Once the customer has mailed
100,000 packages, postage for the customer's next 150,000 packages will
be reduced by 4.75% from the base rates. Packages mailed through any of
the three delivery options will count toward the customer's meeting the
100,000-package threshold.
Once the customer has mailed 250,000 packages during the 12-month
period, postage for the customer's next 250,000 packages will be
reduced by an additional 5.75% taking into account the first discount.
That is, postage will be calculated for these 150,000 packages by
calculating postage at the base rates, then reducing it by 4.75%, and
then reducing that total by a further 5.75%. Again, packages mailed
through any of the three delivery options will count toward the
customer's meeting the 250,000-package threshold.
Once the customer has mailed 500,000 packages during the 12-month
period, postage for the customer's next 500,000 packages will be
reduced by an additional 6.00% taking into account the first two
discounts. That is, postage will be calculated for these 500,000
packages by calculating postage at the base rates, then reducing it by
4.75%, then reducing that total by a further 5.75%, and then reducing
that total by a further 6.00%. Again, packages mailed through any of
the three delivery options will count toward the customer's meeting the
500,000-package threshold.
Once the customer has mailed 1,000,000 packages during the 12-month
period, postage for the customer's remaining packages will be reduced
by an additional 6.25% taking into account the first three discounts.
That is, postage will be calculated for the remaining packages by
calculating postage at the base rates, then reducing it by 4.75%, then
reducing that total by a further 5.75%, then reducing that total by a
further 6.00%, and then reducing that total by 6.25%. Again, packages
mailed through any of the three delivery options will count toward the
customer's meeting the 1,000,000-package threshold.
International Package Consignment Service to Japan
[Base Rates]
------------------------------------------------------------------------
Weight not Standard air Economy air
over (lbs.) Express service service service
------------------------------------------------------------------------
1.............. $14.35 $6.64 $5.43
2.............. 15.69 9.23 9.35
3.............. 17.80 13.63 13.27
4.............. 19.91 15.74 17.20
5.............. 22.02 20.14
6.............. 27.03 24.93
7.............. 29.39 29.86
8.............. 31.76 32.22
9.............. 34.12 37.15
10............. 36.49 39.52
11............. 38.85 41.88
12............. 41.21 46.81
13............. 43.58 49.17
14............. 45.94 54.10
15............. 48.31 56.47
16............. 54.29 65.78
17............. 56.82 68.32
18............. 59.36 73.60
19............. 61.89 76.13
20............. 64.42 81.42
21............. 71.42 89.55
22............. 74.12 92.25
23............. 76.83 97.88
24............. 79.53 100.58
25............. 82.23 106.22
26............. 84.93 108.92
27............. 87.63 114.56
28............. 90.34 117.26
29............. 93.04 122.89
30............. 95.74 125.59
31............. 104.59 139.43
32............. 107.47 142.30
33............. 110.34 145.17
34............. 113.21 151.16
35............. 116.08 154.03
36............. 118.95 160.02
37............. 121.82 162.89
38............. 124.69 168.88
39............. 127.56 171.75
40............. 130.43 177.73
41............. 141.15 191.23
42............. 144.19 197.57
43............. 147.23 200.61
44............. 150.27 203.65
------------------------------------------------------------------------
IV. Legal Issues
On May 16, 1994, the U.S. District Court for the District of
Delaware ruled against the Postal Service in the case of UPS Worldwide
Forwarding, Inc. v. U.S. Postal Service and enjoined it from offering
International Customized Mail (ICM) service. ICM was a new service in
which the Postal Service negotiated service features and rates with
qualifying customers that entered into service agreements. To qualify
for ICM service, a customer had to be capable of annually tendering to
the Postal Service at least 1 million pounds of international mail or
paying at least $2 million in international postage, and of tendering
all of its mail to the Postal Service at one location. ICM enabled the
Postal Service to provide customer-specific service offerings at rates
that reflected the specific costs incurred in providing the service.
Rates and services in any ICM service agreement were available to any
customer qualifying for the service that sent mail with similar
characteristics and that undertook the same preparation and work-
sharing specified in the service agreement.
The District Court first held that UPS, as a competitor of the
Postal Service, had standing to challenge ICM service even though it
did not allege that ICM rates were predatory. The District Court then
concluded that ICM rates violated section 403(b)(2) of the Postal
Reorganization Act (Act), 39 U.S.C. 403(b)(2), because ICM agreements
were with individual mailers and section 403(b)(2) limits the Postal
Service to providing services and establishing rates for categories of
mail and mailers consisting of more than one mailer. The District Court
then concluded that ICM rates were unduly discriminatory because a
mailer had to be capable of posting 1 million pounds of mail or paying
$2 million annually in postage to be eligible for the service, but did
not have to tender those minimum volumes to the Postal Service to
receive ICM service. Under those circumstances, the Court concluded,
different mailers could be paying different rates for similar mail and
mail services. The District Court then concluded that ICM rates
inequitably apportioned the costs of postal services because smaller
mailers that could meet the minimum capabilities requirements did not
have access to ICM rates even if they mailed similar quantities of
mail. Finally, the District Court concluded that ICM rates were illegal
because under section 407 of the Act, 39 U.S.C. 407, the Postal Service
had to obtain the consent of the President to establish international
rates, and the Postal Service had not obtained Presidential consent for
ICM rates.
The Postal Service is appealing the District Court's decision to
the U.S. Court of Appeals for the Third Circuit, and is confident that
it will prevail on appeal. Notwithstanding the appeal, however, the
Postal Service recognizes that it is obligated to comply with the terms
of the District Court's injunction as long as it is in effect, and that
IPCS may be challenged under the same legal theories that UPS used to
challenge ICM service. Consequently, when designing IPCS, the Postal
Service avoided those features of ICM service that the District Court
found to be inconsistent with the Act.
First, IPCS will be available, under the same terms and conditions
and at the same rates, to any customer that can meet the qualifying
criteria. All customers that use IPCS to mail packages to a particular
country will receive the same delivery services. Further, all IPCS
customers will pay the same base rates and will be able to take
advantage of the same volume discounts. Thus, all customers using IPCS
to Japan, even those that eventually mail 500,000 or more packages
during a 12-month period, will pay the same rates for their first
100,000 packages. Similarly, all customers will pay the same rates for
their next 150,000 packages.
Second, the volume-based qualifying criteria will be based on the
actual number of packages that the customer will tender, not on the
customer's potential volume. In selecting 25,000 packages per 12 months
per country as the qualifying threshold, the Postal Service struck a
balance between its desire to provide the service to as many customers
as practicable and its need to be able to recover the costs associated
with providing the service, including the costs of establishing the
necessary information system linkages.
In light of the foregoing, the implementation of IPCS is fully
consistent not only with the provisions of the Act that govern
international rates and services, but also with the District Court's
decision in UPS Worldwide Forwarding, Inc. v. U.S. Postal Service.
V. Conclusion
Accordingly, the Postal Service hereby adopts IPCS to Japan, on an
interim basis, at the rates set forth in the schedule above. Although
39 U.S.C. 407 does not require advance notice and opportunity for
submission of comments, and the Postal Service is exempted by 39 U.S.C.
410(a) from the advance notice requirements of the Administrative
Procedure Act regarding proposed rulemaking (5 U.S.C. 553), the Postal
Service invites interested persons to submit written data, views, or
arguments concerning the interim rule.
List of Subjects in 39 CFR Part 20
International postal service, Foreign relations.
The Postal Service adopts the following amendments to the
International Mail Manual, which is incorporated by reference in the
Code of Federal Regulations. See 39 CFR 20.1.
PART 20--[AMENDED]
1. The authority citation for 39 CFR part 20 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408.
2. Chapter 6 of the International Mail Manual is amended by adding
new subchapter 620 to read as follows:
SUBCHAPTER 620--[ADDED]
CHAPTER 6--SPECIAL PROGRAMS
* * * * *
620 International Package Consignment Service
621 Description
621.1 General
International Package Consignment Service (IPCS) is a bulk mailing
system that provides fast, economical international delivery of
packages containing merchandise. IPCS is designed to make it easier and
less costly for mail order companies to export goods. The Postal
Service provides IPCS on a destination county-specific basic pursuant
to the terms and conditions stipulated in 620.
621.2 Admissible Items
621.21 Prohibited Enclosures
IPCS packages may not contain:
a. Typewritten and handwritten communications having the character
of current correspondence.
b. Any item that is prohibited in international mail. Refer to the
Country Conditions of Mailing in the Individual Country Listings for
individual destination country prohibitions.
621.22 Exceptions
IPCS packages may contain an invoice as long as the invoice is
limited to the particulars that constitute an invoice.
621.3 Availability
IPCS is available only to destination countries identified in 620.
622 Qualifying Mailers
To qualify, a mailer must enter into a service agreement containing
the commitments stipulated in 625.2 and must be able to meet the
general and destination country-specific preparation requirements
stipulated in 620.
623 General
623.1 Special Services
The special services provided for in Chapter 3 are not available
for packages sent by IPCS unless specifically provided for in 620.
623.2 Customs Documentation
The requirements for customs forms vary by destination country as
stipulated in 620.
623.3 Size and Weight Limits
Size and weight limits for packages sent by IPCS vary by
destination country as stipulated in 620.
623.4 Postage
623.41 Rates
Rates vary by destination country as stipulated in 620.
623.42 Postage Payment Method
Postage must be paid by permit imprint.
623.43 Documentation
Each mailing of IPCS packages must be accompanied by a manifest and
other documentation in the form specified by the Postal Service.
624 Preparation Requirements
624.1 General Requirements
624.11 Barcode
Every IPCS package must bear a barcode, in a format acceptable to
the Postal Service, that identifies the package by a unique number. The
mailer must place the barcode on the address side of the package.
624.12 Addressing
See 122. The name and address of the mailer and of the addressee
also should be recorded on a separate slip enclosed in the package.
624.13 Sealing
Every IPCS package must be sealed by the mailer. Wax, gummed-paper
tape, nails, screws, wire, metal bands, or other materials may be used
as suitable. The seal must be sufficient to allow detection of
tampering.
624.14 Packaging
Every IPCS package must be securely and substantially packed. In
packing, the mailer should consider the nature of the contents, the
climate, and the delivery method. The Postal Service will determine
whether the contemplated packaging is suitable prior to the mailer's
use of IPCS.
624.15 Nonpostal Documentation
Forms required by nonpostal export regulations are described in
Chapter 5.
624.2 Destination Country-Specific Requirements
Certain preparation requirements vary by destination country as
stipulated in 620.
625 IPCS Service Agreements
625.1 General
The mailer must enter into a separate service agreement for each
destination country to which it wants to use IPCS.
625.2 Required Provisions
Each service agreement must contain the following:
a. The mailer's commitment to send at least 25,000 packages by IPCS
during the next 12 months to the specified destination country.
b. The mailer's commitment to designate the Postal Service as its
carrier of choice to the specified destination country.
c. The mailer's commitment to link its information systems with the
Postal Service's so that (1) the Postal Service and the mailer can
exchange data transmissions concerning the mailer's packages, and (2)
by scanning the mailer-provided barcode on each package, the Postal
Service can extract, on an as-needed basis, certain information about
the package. The package-specific information that the mailer is
required to make available varies by destination country as stipulated
in 620.
625.3 Optional Provisions
Each service agreement may set forth any IPCS-related arrangements
between the Postal Service and the mailer that are technical in nature.
626 IPCS to Japan
626.1 Description
626.11 General
IPCS to Japan provides the mailer with three delivery options, and
with preparation by the Postal Service of the customs forms required by
Japan Post.
626.12 JFK Processing Facility
All IPCS packages sent to Japan are processed at, and dispatched
from, a dedicated facility located at JFK International Airport (the
JFK Processing Facility).
626.13 Delivery Options
626.131 Express Service
Packages sent through Express Service are transported by air to
Japan, where they receive special handling by Japan Post and expedited
delivery. The mailer can track Express Service packages through
delivery. Reports of delivery performance are furnished to the mailer
in the formats and at the frequencies agreed upon by the Postal Service
and the mailer.
626.132 Standard Air Service
Packages sent through Standard Air Service are transported by air
to Japan, where they enter Japan Post's domestic airmail system for
delivery. The mailer can track Standard Air Service packages through
dispatch from the JFK Processing Facility.
626.133 Economy Air Service
Packages sent through Economy Air Service are transported by air to
Japan, where they enter Japan Post's domestic surface mail system for
delivery. The mailer can track Economy Air Service packages through
dispatch from the JFK Processing Facility.
626.2 Acceptance
626.21 Within 500 Miles of JFK
If the plant at which the mailer's IPCS packages originate is
located within 500 miles of the JFK Processing Facility, the Postal
Service accepts the packages at the plant and transports them by truck
to the JFK Processing Facility according to a schedule agreed upon by
the Postal Service and the mailer.
626.22 More Than 500 Miles From JFK
If the plant at which the mailer's IPCS packages originate is
located more than 500 miles from the JFK Processing Facility, the
mailer must present the packages for verification at the plant and
transport them as a drop shipment to the JFK Processing Facility
according to a schedule agreed upon by the Postal Service and the
mailer.
626.3 Required Package-Specific Information
The mailer must make available to the Postal Service, by means of
data transmissions in the formats and at the frequencies agreed upon by
the Postal Service and the mailer, the following information about each
IPCS package:
a. Order number.
b. Package identification number.
c. Delivery option used for package.
d. Buyer's name and address.
e. Recipient's name and address.
f. Total weight.
g. Total value.
h. Total number of items in package.
i. Number of each individual item in package.
j. SKU and/or key-word description of each item.
k. Value of each item.
l. Country of origin (if available) of each item.
626.4 Insurance and Indemnity
626.41 Express Service
Packages sent through Express Service are insured against loss,
damage, or rifling at no additional cost. Indemnity will be paid by the
Postal Service as provided in DMM S500. However, Express Service
packages are not insured against delay in delivery. Neither indemnity
payments nor postage refunds will be made in the event of delay.
626.42 Standard Air Service
Packages sent through Standard Air Service weighing more than 1
pound may be insured at an additional cost. See 320.
626.43 Economy Air Service
Packages sent through Economy Air Service may not be insured.
626.5 Postage
626.51 Base Rates
See Exhibit 626.51. Postage is paid on a per-package basis.
International Package Consignment Service to Japan Base Rates
[Exhibit 626.51]
------------------------------------------------------------------------
Weight not over Standard air Economy air
(lbs.) Express service service service
------------------------------------------------------------------------
1.............. $14.35 $6.64 $5.43
2.............. 15.69 9.23 9.35
3.............. 17.80 13.63 13.27
4.............. 19.91 15.74 17.20
5.............. 22.02 20.14
6.............. 27.03 24.93
7.............. 29.39 29.86
8.............. 31.76 32.22
9.............. 34.12 37.15
10............. 36.49 39.52
11............. 38.85 41.88
12............. 41.21 46.81
13............. 43.58 49.17
14............. 45.94 54.10
15............. 48.31 56.47
16............. 54.29 65.78
17............. 56.82 68.32
18............. 59.36 73.60
19............. 61.89 76.13
20............. 64.42 81.42
21............. 71.42 89.55
22............. 74.12 92.25
23............. 76.83 97.88
24............. 79.53 100.58
25............. 82.23 106.22
26............. 84.93 108.92
27............. 87.63 114.56
28............. 90.34 117.26
29............. 93.04 122.89
30............. 95.74 125.59
31............. 104.59 139.43
32............. 107.47 142.30
33............. 110.34 145.17
34............. 113.21 151.16
35............. 116.08 154.03
36............. 118.95 160.02
37............. 121.82 162.89
38............. 124.69 168.88
39............. 127.56 171.75
40............. 130.43 177.73
41............. 141.15 191.23
42............. 144.19 197.57
43............. 147.23 200.61
44............. 150.27 203.65
------------------------------------------------------------------------
626.52 Discounts
Postage is reduced by the following additive discounts once the
applicable volume thresholds are reached during a 12-month period:
a. 25,000 to 100,000 packages: 0.00%.
b. 100,001 to 250,000 packages: 4.75%.
c. 250,001 to 500,000 packages: additional 5.75%.
d. 500,001 to 1,000,000 packages: additional 6.00%.
e. More than 1,000,000 packages: additional 6.25%.
626.6 Size and Weight Limits
626.61 Size Limits
626.611 Express Service
Express Service packages must meet these size limits:
a. Minimum length and width: large enough to accommodate the
necessary labels and customs forms on the address side.
b. Maximum length: 60 inches (36 inches until Japan Post formally
agrees to the larger size limit).
c. Maximum length and girth combined: 108 inches (79 inches until
Japan Post formally agrees to the larger size limit).
626.612 Standard Air Service
Standard Air Service packages must meet these size limits:
a. Minimum length and width: large enough to accommodate the
necessary labels and customs forms on the address side.
b. Maximum length: 60 inches (42 inches until Japan Post formally
agrees to the larger size limit.) Maximum length for packages weighing
1 pound or less is 24 inches.
c. Maximum length and girth combined: 108 inches (79 inches until
Japan Post formally agrees to the larger size limit). Maximum length,
height, depth (thickness) combined for packages weighing 1 pound or
less is 36 inches.
626.613 Economy Air Service
Economy Air Service packages must meet these size limits:
a. Minimum length and width: large enough to accommodate the
necessary labels and customs forms on the address side.
b. Maximum length: 24 inches.
c. Maximum length, height, depth (thickness) combined: 36 inches.
626.62 Weight Limits
626.621 Express Service
Maximum weight: 44 pounds.
626.612 Standard Air Service
Maximum weight: 44 pounds.
626.613 Economy Air Service
Maximum weight: 4 pounds.
627 Customs Forms Required
The mailer is not normally required to affix customs forms to IPCS
packages sent to Japan. The Postal Service prints the necessary customs
forms based on the package-specific information transmitted by the
mailer, and affixes them to the packages. However, during the interim
period in which the Postal Service and the mailer are establishing the
information systems linkages to enable the Postal Service to accomplish
this, the mailer is required to affix the appropriate customs forms to
the packages, as follows:
a. Express Service: Form 2966-A, Parcel Post Customs Declaration--
United States of America.
b. Standard Air Service: Form 2966-A, Parcel Post Customs
Declaration--United States of America (packages weighing 1 pound or
less must bear Form 2976, Customs--Douane C1).
c. Economy Air Service: Form 2976, Customs--Douane C1.
628 Preparation Requirements
628.1 Express Service
Every package sent through Express Service must bear a label
identifying it as an Express Service package. The mailer is not
normally required to affix this label. The Postal Service prints the
necessary label and affixes it to the Express Service package. However,
during the interim period in which the Postal Service and the mailer
are establishing the information systems linkages to enable the Postal
Service to accomplish this, the mailer is required to affix Label 11-B,
Express Mail Service Post Office to Addressee, or an alternative label
as instructed by the Postal Service, to every Express Service package.
628.2 Standard Air Service
There are no Japan-specific preparation requirements for packages
sent through Standard Air Service (packages weighing 1 pound or less
must bear the SMALL PACKET marking). See 264.21.
628.3 Economy Air Service
Packages sent through Economy Air Service must bear the SMALL
PACKET marking. See 264.21.
A transmittal letter making the changes in the pages of the
International Mail Manual will be published and transmitted
automatically to subscribers. Notice of issuance of the transmittal
letter will be published in the Federal Register as provided by 39 CFR
20.3.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 94-31373 Filed 12-21-94; 8:45 am]
BILLING CODE 7710-12-P
