[Federal Register Volume 62, Number 185 (Wednesday, September 24, 1997)]
[Rules and Regulations]
[Pages 49915-49918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25356]


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POSTAL SERVICE

39 CFR Part 20


Implementation of Global Package Link Service

AGENCY: Postal Service.

ACTION: Interim rule with request for comments.

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SUMMARY: Global Package Link Service (GPL) is an international mail 
service designed for mailers sending merchandise to other countries. To 
implement an agreement previously entered into with the postal 
administration of Hong Kong Special Administrative Region (Hong Kong), 
Hong Kong is now being added as a destination country. This action is 
consistent with the Postal Service's original plan to add destination 
countries as mailer needs dictate (59 FR 65961; December 22, 1994). GPL 
Service previously has been made available to Brazil, Canada, Chile, 
China, France, Germany, Japan, Mexico, Singapore, and the United 
Kingdom (U.K.). To use GPL Service, a mailer must mail at least 10,000 
GPL packages a year and 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 mailer's packages for customs 
clearance and other purposes. Initially, one level of service to Hong 
Kong will be offered to mailers. Interim 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 September 24, 1997. Comments 
must be received on or before October 24, 1997.

ADDRESSES: Written comments should be mailed or delivered to Global 
Package Link Service, U.S. Postal Service, 475 L'Enfant Plaza SW, Room 
370 IBU, 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.

FOR FURTHER INFORMATION CONTACT: Robert Michelson at the above address. 
Telephone: (202) 268-5731. Marc Solnick at the above address. 
Telephone: (202) 268-3916.

SUPPLEMENTARY INFORMATION:

I. Introduction

    One of the most important goals of the Postal Service's 
international mission is developing services that enhance the ability 
of U.S. mailers to do business in other countries. This responsibility 
was delineated in 39 U.S.C. 403(b)(2) which makes it the obligation of 
the Postal Service ``to provide types of mail service to meet the needs 
of different categories of mail and mail users.'' GPL is designed to 
more closely meet the needs of mailers who send merchandise packages 
from the United States to multiple international addressees by 
simplifying the process mailers use to prepare their packages for 
mailing and by reducing the costs those mailers incur in mailing 
merchandise to other countries.
    In late 1994, with implementation of International Package 
Consignment Service, later renamed Global Package Link, to Japan (59 FR 
65961; December 22, 1994), the Postal Service announced that, when 
feasible, it would expand this service to other destination countries 
based on mailer requests. Consistent with this policy, the Postal 
Service later expanded GPL by adding Canada and the United Kingdom as 
destination countries for qualifying mailers (61 FR 13765; March 28, 
1996), subsequently expanded GPL further by announcing Brazil, Chile, 
and Germany as GPL destinations (62 FR 17072; April 9, 1997), added the 
People's Republic of China as a GPL destination (62 FR 25515; May 9, 
1997), added Mexico and Singapore as GPL destinations (62 FR 45160; 
August 26, 1997), and added France as a GPL destination (62 FR 47558; 
September 10, 1997). The USPS is hereby further expanding GPL by adding 
Hong Kong as a GPL destination for qualifying mailers. This action 
implements an agreement with the postal administration of Hong Kong 
dated August 29, 1997.

II. GPL to Hong Kong Special Administrative Region

A. Qualifying Criteria

    A mailer who wants to use GPL to Hong Kong must enter into a 
service agreement with the Postal Service providing for the following. 
First, the mailer must commit to mail at least

[[Page 49916]]

10,000 GPL packages per year (volumes to any GPL country may be counted 
toward this minimum). Second, the mailer must designate the Postal 
Service as its carrier of choice to Hong Kong. Third, the mailer must 
agree to link its information systems with the Postal Service's so that 
the Postal Service and the mailer can exchange data on the mailer's 
packages, and the Postal Service can extract, on an as-needed basis, 
certain information about the package by scanning the mailer-provided 
barcode on each 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 
contents; the number of items in the package; and, for each item in the 
package, its SKU number, its value, and its country of origin. In 
practice, this requirement means that the mailer will have to begin the 
necessary systems work by the time it begins using GPL, 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 the necessary customs forms and package labels 
and to provide user-friendly tracking and tracing.
    In addition to these required commitments, which must appear in all 
GPL service agreements, arrangements between the Postal Service and the 
mailer that are technical in nature also may appear in the GPL service 
agreement. For instance, the service agreement may describe the 
electronic data interface (EDI) or proprietary file format that will be 
used to transmit data between the mailer 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 mailer.

B. Processing and Acceptance

    If the plant at which the mailer's GPPL packages originate is 
located within 500 miles of a GPL processing facility, the Postal 
Service will verify and accept the packages at the mailer's plant and 
transport them to the GPL processing facility according to a schedule 
agreed to by the Postal Service and the mailer.
    If the mailer's plant from which the GPL packages will originate is 
located more than 500 miles from a GPL processing facility, the mailer 
may choose one of two processing options:
Option One
    The mailer will be required to present the packages to the Postal 
Service for verification at the mailer's plant and transport them as a 
drop shipment to a GPL processing facility according to a schedule 
agreed to by the Postal Service and the mailer.
Option Two
    The mailer will process the packages using Postal Service-provided 
computer system workstations and sort and prepare the packages as 
required by the Postal Service. Then, the Postal Service will verify 
and accept the packages at the mailer's plant according to a schedule 
agreed to by the Postal Service and the mailer and will transport the 
packages to a GPL processing facility for dispatch.

C. Customs Forms

    Normally, all customs forms will be automatically generated by the 
Postal Service computer workstations. Packages mailed to Hong Kong 
through a GPL facility are not required to bear customs forms when they 
are tendered to the Postal Service. After scanning the mailer-printed 
barcode on each package and correlating it with the package-specific 
information transmitted by the mailer, the Postal Service will print 
the necessary customs forms and then affix them to the mailer's 
packages as part of the processing operation at the GPL processing 
facility. If the mailer is more than 500 miles from a designated GPL 
facility and chooses option two, then the customs/GPL label will be 
affixed by the mailer using Postal Service-provided workstations.

D. Customs Clearance

    The Postal Service has developed the Customs Pre-Advisory System 
(CPAS) as part of GPL processing. This electronic system collects 
package-specific data to satisfy customs requirements as packages are 
processed using the USPS computer workstations located at a GPL 
facility. The system electronically advises the USPS delivery agent and 
customs of the contents of each package mailed. Since this advisory 
information arrives before the mail, CPAS facilitates and simplifies 
customs clearance. Electronic pre-notification of the package contents 
and automatic preparation of required customs declarations assures the 
fastest clearance through customs in Hong Kong and reduces costs for 
the mailer and the Postal Service. To use CPAS, recipients of 
merchandise must designate the Postal Service and its customs broker as 
their agents for customs clearance.
    Any customs duties and taxes for Hong Kong will be collected from 
the package recipient upon delivery in Hong Kong.

E. Delivery Options

Hong Kong
    The Postal Service will offer one delivery option in Hong Kong: 
Premium Service. Premium Service shall receive a level of service 
comparable to Express Mail International Service (EMS) service in Hong 
Kong. It will include track and trace for individual packages and 
delivery throughout Hong Kong within 1 to 2 business days after 
clearing customs. Premium Service includes insurance, as provided under 
DMM S500, at no additional cost.
    The Postal Service will transport Premium Service packages from the 
mailer's plant or designated GPL processing facility to Hong Kong via 
airlift. Packages will be dispatched to flights either the evening that 
processing is complete or the next morning. Arrival in Hong Kong is 
expected within 36 hours after dispatch.

F. Rates

Hong Kong
    The base rates for GPL service to Hong Kong are set forth below. 
The Postal Service will charge the base rates, in 1-pound increments, 
for the first 100,000 packages mailed in a 12-month period. Once the 
mailer has mailed 100,000 packages, postage for the next packages 
mailed by the mailer in the same 12-month period will be reduced by 3% 
from the base rates.

                    Global Package Link to Hong Kong                    
------------------------------------------------------------------------
                                                          Annual volume 
                                                          first 100,000 
                                                          packages--no  
               Weight not over (pounds)                 discount premium
                                                             service    
                                                            (dollars)   
------------------------------------------------------------------------
1.....................................................             15.55
2.....................................................             18.75
3.....................................................             22.00
4.....................................................             25.20
5.....................................................             28.45
6.....................................................             31.65
7.....................................................             34.90
8.....................................................             38.10
9.....................................................             41.35
10....................................................             44.55
11....................................................             47.80
12....................................................             51.00
13....................................................             54.25
14....................................................             57.45
15....................................................             60.70
16....................................................             63.90

[[Page 49917]]

                                                                        
17....................................................             67.15
18....................................................             70.35
19....................................................             73.60
20....................................................             76.80
21....................................................             80.05
22....................................................             83.25
23....................................................             86.50
24....................................................             89.70
25....................................................             92.90
26....................................................             96.15
27....................................................             99.35
28....................................................            102.60
29....................................................            105.80
30....................................................            109.05
31....................................................            112.25
32....................................................            115.50
33....................................................            118.70
34....................................................            121.95
35....................................................            125.15
36....................................................            128.40
37....................................................            131.60
38....................................................            134.85
39....................................................            138.05
40....................................................            141.30
41....................................................            144.50
42....................................................            147.75
43....................................................            150.95
44....................................................            154.20
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------------------------------------------------------------------------
   Number of pieces in contract year                 Discount           
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1-100,000..............................  None.                          
100,001+...............................  3 percent of base rate.        
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III. Conclusion

    Accordingly, the Postal Service hereby adopts GPL service to Hong 
Kong Special Administrative Region, on an interim basis, at the rates 
set forth in the schedules 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 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

    International postal service, Foreign relations.

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. Effective on September 24, 1997, subchapter 620 and the 
Individual Country Listing pages for Hong Kong in the International 
Mail Manual are amended as follows:

6  Special Programs

* * * * *

621.3  Availability

    Global Package Link service is available only to Brazil, Canada, 
Chile, People's Republic of China, France, Germany, Hong Kong Special 
Administrative Region, Japan, Mexico, Singapore, and the United 
Kingdom.
* * * * *

623  General

* * * * *

623.3  Size and Weight Limits

    [Replace first sentence in paragraph with:]
    The weight limits for Global Package Link service are 70 pounds for 
Chile, China, and Germany; 66 pounds for Brazil, Canada, France, 
Singapore, and the United Kingdom; 64 pounds for Mexico; and 44 pounds 
for Japan and Hong Kong Special Administrative Region.
    [Replace second sentence in paragraph with:]
    The maximum length of GPL packages is 60 inches and the maximum 
length and girth combined is 108 inches, with the following exceptions: 
Maximum size for Germany is length 47 inches, height 23 inches, width 
23 inches; maximum size for the People's Republic of China and Hong 
Kong Special Administrative Region for any one dimension is 59 inches; 
the sum of the length and the greatest circumference measured in a 
direction other than the length shall not exceed 118 inches; Japan 
Standard packages weighing less than 1 pound, the maximum length is 24 
inches with a height and depth and length combined maximum of 36 
inches.
* * * * *

626  Services Available

* * * * *

626.4  Customs

* * * * *

626.43  Payment of Customs Duty 626.431 All Countries Except Japan, the 
People's Republic of China, Hong Kong Special Administrative Region, 
and Singapore

    For all countries except Japan, the People's Republic of China, 
Hong Kong Special Administrative Region, and Singapore, the Postal 
Service will arrange payment of customs duty on behalf of the recipient 
at the time the merchandise enters the country of destination. Any 
banking costs or foreign exchange fees applicable to the customs 
payments will be charged back to the mailer. The Postal Service will 
notify the mailer electronically of the amount of duty and fees paid 
and the mailer will reimburse the Postal Service in a manner and within 
a time frame agreed to by the mailer and the Postal Service. Because of 
the need to have funds available for customs at the time of clearance 
in Brazil, Chile, and Mexico, mailers must make an advance deposit 
prior to first mailing to cover anticipated duties and taxes in 
addition to postage. For subsequent mailings, this account must be 
replenished by the mailer after the actual amount of duties and taxes 
is assessed. The mailer is responsible for collecting duties and taxes 
from the recipient (this can be done when payment for the order is 
made). For Mexico, GPL mailers will pay customs the day after the 
shipments arrive in customs, through a pre-authorized Automated 
Clearing House (ACH) debit program. GPL mailers must agree to allow the 
USPS to debit their designated bank account through the ACH debit 
program to pay these charges.

626.432  Japan, the People's Republic of China, Hong Kong Special 
Administrative Region, and Singapore

    In Japan, the People's Republic of China, Hong Kong Special 
Administrative Region, and Singapore, any customs duties and fees will 
be collected from the recipient at the time of delivery.
* * * * *
    Individual Country Listing for Hong Kong:
    [Add the rate chart below.]

                Global Package Link Service to Hong Kong                
------------------------------------------------------------------------
                                                          Annual volume 
                                                          first 100,000 
                                                          packages--no  
               Weight not over (pounds)                     discount,   
                                                         premium service
                                                            (dollars)   
------------------------------------------------------------------------
1.....................................................             15.55

[[Page 49918]]

                                                                        
2.....................................................             18.75
3.....................................................             22.00
4.....................................................             25.20
5.....................................................             28.45
6.....................................................             31.65
7.....................................................             34.90
8.....................................................             38.10
9.....................................................             41.35
10....................................................             44.55
11....................................................             47.80
12....................................................             51.00
13....................................................             54.25
14....................................................             57.45
15....................................................             60.70
16....................................................             63.90
17....................................................             67.15
18....................................................             70.35
19....................................................             73.60
20....................................................             76.80
21....................................................             80.05
22....................................................             83.25
23....................................................             86.50
24....................................................             89.70
25....................................................             92.90
26....................................................             96.15
27....................................................             99.35
28....................................................            102.60
29....................................................            105.80
30....................................................            109.05
31....................................................            112.25
32....................................................            115.50
33....................................................            118.70
34....................................................            121.95
35....................................................            125.15
36....................................................            128.40
37....................................................            131.60
38....................................................            134.85
39....................................................            138.05
40....................................................            141.30
41....................................................            144.50
42....................................................            147.75
43....................................................            150.95
44....................................................            154.20
------------------------------------------------------------------------


------------------------------------------------------------------------
   Number of pieces in contract year                 Discount           
------------------------------------------------------------------------
1-100,000..............................  None                           
100,001+...............................  3 percent of base rate.        
------------------------------------------------------------------------

* * * * *
Stanley F. Mires,
Chief Counsel Legislative.
[FR Doc. 97-25356 Filed 9-23-97; 8:45 am]
BILLING CODE 7710-12-P