[Federal Register Volume 63, Number 52 (Wednesday, March 18, 1998)]
[Rules and Regulations]
[Pages 13124-13126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6943]


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POSTAL SERVICE

39 CFR Part 20


Implementation of New Market Opportunities Program

AGENCY: Postal Service.

ACTION: Interim rule.

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SUMMARY: The Postal Service proposes to adopt, as an interim rule, new 
rates and conditions of mailing for the New Market Opportunities 
Program. This program is designed to meet the needs of direct mail and 
mail order companies seeking to easily and cost effectively enter the 
international marketplace. It is available for companies who wish to 
test sending catalogs and merchandise to any or all of the following 
markets: Brazil, Canada, Chile, China, France, Germany, Hong Kong, 
Japan, Mexico, Singapore, and the United Kingdom. A mailer will send 
catalogs using International Surface Air Lift or VALUEPOST 
TM/CANADA service and merchandise using Global Package Link. 
To assist the mailers' tests in these markets, the Postal Service 
includes other services as part of the program, including translation 
of order form and

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company information sheet into in-country language, and advice on 
catalog layout, as well as mailing list companies, call centers, and 
other resources in the destination countries.

DATES: These regulations take effect March 18, 1998.

ADDRESSES: Written comments should be directed to Manager, Mail Order, 
Room 370-IBU, International Business Unit, U.S. Postal Service, 
Washington, D.C. 20260-6500. Copies of all written comments will be 
available for public inspection between 9 a.m. and 4 p.m., Monday 
through Friday, in the International Business Unit, 10th Floor, 901 D 
Street, SW, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: Robert E. Michelson, (202) 268-5731.

SUPPLEMENTARY INFORMATION: The New Market Opportunities Program 
provides bulk mailing services designed to assist direct mailers, 
catalogers, and other mailers in entering new international markets. 
This program ties together International Surface Air Lift (ISAL), 
VALUEPOST TM/CANADA, and Global Package Link (GPL) to 
Brazil, Canada, Chile, China, Hong Kong, France, Germany, Japan, 
Mexico, Singapore, and the United Kingdom with other services so that 
mailers may conduct market tests.
    The New Market Opportunities Program is adopted as an interim rule 
in response to the requests of numerous mailers for an easy way to test 
whether their merchandise is marketable in the markets where the 
program is available. The Postal Service believes that this program 
will make it possible for companies to conduct such a test, with 
minimal risk and investment, and will cover the cost of providing the 
service with a reasonable contribution to institutional costs.
    To qualify for this program, a direct mailer, cataloger, or other 
mailer must use ISAL or VALUEPOST TM/CANADA service to send 
a minimum of 25,000 catalogs to one of the test markets and use Global 
Package Link service to ship orders received. Each test will last up to 
6 months, and more than one country may be tested simultaneously.
    Companies that participate in the New Market Opportunities Program 
will receive information to determine their best country-specific 
prospects, delivery of their catalogs in the selected test market(s), 
delivery of their packages, and evaluation of test results at the end 
of the test.
    The New Market Opportunities Program is available to Brazil, 
Canada, Chile, China, France, Germany, Hong Kong, Japan, Mexico, 
Singapore, and the United Kingdom.
    Rates for this program include delivery of catalogs; translation of 
the company's order form and company information to the in-country 
language of the test market; lists of suppliers for mailing lists, call 
centers, payment processing companies; country-specific information; 
lettershop services for mailers that have not used ISAL or VALUEPOST 
TM/CANADA for at least 1 year, a cost analysis worksheet; 
post-test evaluation of results; and participation in a post-test visit 
to USPS-selected destination countries. Rates are one fixed price for 
all markets for 25,000 catalogs and a per-piece charge for more than 
25,000. Maximum weight allowable for each catalog is 6 ounces.
    Although 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 public comment at 
the above address.
    The Postal Service adopts as an interim rule International Mail 
Manual (IMM) 248 , 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, Incorporation by reference, International postal 
services.

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, 407, 408.

    2. The IMM is amended to incorporate part 248, New Market 
Opportunities Program, as follows:

International Mail Manual (IMM)

2  Conditions for Mailing * * *

* * * * *

248  New Market Opportunities Program

248.1  Definition

    The New Market Opportunities Program is designed for catalog 
companies that desire to test sending catalogs and merchandise to 
foreign countries. Each test will last up to 6 months. More than one 
market may be tested simultaneously. To participate in the New Market 
Opportunities Program, a company must sign a service agreement. This 
will contain the mailer's agreement to use International Surface Air 
Lift (ISAL) or VALUEPOST TM/CANADA service to send its 
catalogs and Global Package Link (GPL) service to fulfill catalog 
orders to selected destination markets. The mailer must meet all 
qualifications of GPL, either directly or through a GPL wholesaler (see 
620 and 630). In addition to the delivery of catalogs and merchandise, 
the Postal Service will provide the mailer with:
    .11. A translation of the company's order form and ordering 
instructions to the language of the destination country, if 
appropriate.
    .12. A translation of a single page in the mailer's catalog, which 
describes the company and the products it sells, to the language of the 
destination country, if appropriate.
    .13. A list of suppliers including list providers, call centers, 
and payment processing companies for the destination countries.
    .14. A description of the destination country culture and mail 
order environment, including, but not limited to, country demographics, 
potential mail order products, direct marketing infrastructure, payment 
options, and catalog configuration.
    .15. Lettershop service through the USPS Prequalified Wholesaler 
Program, if the mailer has not used ISAL or VALUEPOST TM/
CANADA for 1 year or more.
    .16. A cost analysis worksheet to assist the mailer in making a 
cost analysis and projections for each market test.
    .17. Participation in a post-test visit to Postal Service-selected 
destination countries.

248.2  Qualifying Mailings

    Only printed matter as defined in 241 that meets all applicable 
mailing standards may be sent through this program. To qualify, a 
mailing must consist of a minimum of 25,000 ISAL or VALUEPOST 
TM/CANADA pieces to each country tested.

248.3  Availability

    The New Market Opportunities Program is available to the following 
markets: Brazil, Canada, Chile, China, France, Germany, Hong Kong, 
Japan, Mexico, Singapore, and the United Kingdom. The service is 
available as a Direct Ship or Drop Ship acceptance under 246.712 and 
246.32 for ISAL and 247 for VALUEPOST TM/CANADA.

248.4  Special Services

    The special services described in chapter 3 are not available for 
items sent as part of the New Market Opportunities Program as ISAL or 
VALUEPOST TM/CANADA.

248.5  Customs Documentation

    See the customs forms requirements in 244.6 for ISAL and in 247.42 
for VALUEPOST TM/CANADA.

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248.6  Permits

    ISAL and VALUEPOST TM/CANADA mailings must be submitted 
to the Postal Service with PS Form 3651, International Statement of 
Mailing (for Permit Imprints and Metered Bulk Letters to Canada).

248.7  Postage

248.71  Rates

    Rates for the first 25,000 pieces per country:

Price per country: $22,000
Price for Canada: $17,000
Discount per country $ 2,000
(3 or more countries in a 6-month period)

    Additional catalogs over 25,000 pieces: Add $0.80 per piece.

    Note: Cost for GPL shipments is additional (see 620).

248.72  Payment Methods

    Payment must be paid through advance deposit account by permit 
imprint only. Mailings must consist of identical weight pieces.

248.8  Weight and Size Limits

    The maximum weight per piece is 6 ounces.

248.9  Preparation Requirements

    All of the requirements for preparation of ISAL and VALUEPOST 
TM/CANADA in 246 and 247 must be met.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-6943 Filed 3-17-98; 8:45 am]
BILLING CODE 7710-12-P