[Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
[Rules and Regulations]
[Pages 36500-36501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17600]


-----------------------------------------------------------------------


POSTAL SERVICE
39 CFR Part 20


Implementation of International Package Consignment Service

AGENCY: Postal Service.

ACTION: Amendment to interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: International Package Consignment Service (IPCS) is an 
international mail service designed for companies sending merchandise 
to addresses in other countries. The service is currently available to 
Japan, Canada, and the United Kingdom (U.K.). To use IPCS, a customer 
is required to mail at least 25,000 packages a year to Japan, at least 
25,000 packages a year to Canada, or at least 10,000 packages a year to 
the U.K. This amendment provides an option for IPCS customers who meet 
the minimum mailing requirements to any one IPCS country of destination 
to enter additional packages for delivery in any other IPCS country of 
destination at reduced volume thresholds, specifically, 5,000 packages 
per year.
    Therefore, an existing IPCS customer who satisfies the minimum 
volume criteria for one destination country, has linked its information 
systems with the Postal Service's, and who has established 
transportation with the Postal Service may send additional packages to 
other IPCS destination countries by signing a service agreement for 
that destination country that commits the customer to mail at least 
5,000 packages a year to other IPCS destinations of the customer's 
choosing. Under this option, the customer has greater flexibility to 
respond more easily to the market conditions in which he is competing 
for overseas business while allowing the Postal Service to develop a 
traffic base that contributes to greater economies of scale. The 
interim implementing regulations have been amended and are set forth 
below for comment and suggested revision prior to adoption in final 
form.

DATES: The amended regulations take effect July 11, 1996. Comments must 
be received on or before July 25, 1996.

ADDRESSES: Written comments should be mailed or delivered to 
International Package Consignment Service, U.S. Postal Service, 475 
L'Enfant Plaza SW, Room EB4400, Washington, DC 20260-6500. Copies of 
all written comments will be available for public inspection and 
photocopying at the above address between 9 a.m. and 4 p.m., Monday 
through Friday, after July 25, 1996.

FOR FURTHER INFORMATION CONTACT: Tim Gribben at the above address. 
Telephone: (202) 268-3035.

SUPPLEMENTARY INFORMATION: International Package Consignment Service 
(IPCS) is designed to more closely meet the needs of customers who send 
merchandise packages from the United States to multiple international 
addresses by simplifying the process companies use to prepare their 
packages for mailing and by reducing the costs those companies incur in 
mailing merchandise to other countries.
    IPCS benefits all users of the Postal Service because revenues 
collected contribute to fixed costs, thereby decreasing the total 
revenue that the Postal Service needs to recover from other services. 
At the same time, IPCS makes it easier and more economical for 
customers in the United States to export their products to 
international markets.
    Once a customer qualifies for IPCS into Japan, Canada, or the U.K. 
and has started mailing into one of these destination countries, then 
the minimum volume requirement for entry into any other country is 
reduced to 5,000 packages a year. To be considered qualified, customers 
must meet the following criteria: satisfy the minimum volume 
requirement for an IPCS destination country, have its information 
systems linked with the Postal Service's, and have transportation in 
place between the customer and the Postal Service. The customer must 
still enter into a separate service agreement for each IPCS destination 
country to which it wants to use IPCS, and designate the Postal Service 
as their carrier of choice to that IPCS destination country.
    Accordingly, the Postal Service hereby amends IPCS to allow 
qualified customers to satisfy lower minimum volumes when entering into 
IPCS service agreements to additional destination countries. 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

[[Page 36501]]

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 this interim rule.
    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.

List of Subjects in 39 CFR Part 20

     Foreign relations, Postal service.

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.

Subchapter 620--Amended

    2. Subchapter 620 of the International Mail Manual, Issue 16, is 
amended as follows:

6  Special Programs

* * * * *

620  International Package Consignment Service

* * * * *

622  Qualifying Customers

    To qualify, a customer 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 and the Individual Country Listings.
    Once a customer qualifies for IPCS and has started mailing into a 
destination country, then the minimum volume requirement for entry into 
any other country is reduced to 5,000 packages a year. To be considered 
qualified, customers must meet the following criteria: satisfy the 
minimum volume requirement for their destination country, have its 
information systems linked with the Postal Service's; and have 
transportation in place between the customer and the Postal Service. 
The customer must still enter into a separate service agreement for 
each destination country to which it wants to use IPCS and designate 
the Postal Service as its carrier of choice to that destination 
country.
* * * * *

625  IPCS Service Agreements

* * * * *

625.2  Required Provisions

    Each service agreement must contain the following:
     a. The customer's commitment to send at least 25,000 packages to 
Japan or Canada (or 10,000 to the United Kingdom) by IPCS during the 
next 12 months. However, once a customer enters into an IPCS agreement 
to one destination country and begins mailing, then that customer may 
enter other destination countries by committing to mail at least 5,000 
packages to the other destination countries. A customer's failure to 
meet the original volume requirements may result in termination, by the 
Postal Service, of the right to mail to other destination countries.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-17600 Filed 7-10-96; 8:45 am]
BILLING CODE 7710-12-P