NOTE: COMMENTS REGARDING ANY FEDERAL REGISTER NOTICE MUST BE SENT TO THE ADDRESS INDICATED IN THE DOCUMENT. ANY COMMENTS ON THE RAPID INFORMATION BULLETIN BOARD SYSTEM (RIBBS) ABOUT ANY FEDERAL REGISTER NOTICES WILL NOT BE USED OR CONSIDERED IN THE COURSE OF ANY RULE MAKING. ======================================================================= ----------------------------------------------------------------------- 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]