[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]


=======================================================================
-----------------------------------------------------------------------

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