Global Shipping 101 A Step by Step Guide - Frank A. Cebello USPS Darren D. Lamb Colography Group Inc - The Colography Group
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5/16/2017
Global Shipping 101
A Step‐by‐Step Guide
Frank A. Cebello‐ USPS
Director, Global Business Solutions (A)
Darren D. Lamb‐ Colography Group Inc.
Director, Research & Business Development
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5/16/2017
• The Global Marketplace
• Trends
• Top Destinations & Products in Demand
• Customer Expectations
• Customs and Customs Forms
• USPS International Services
• Pricing
• USPS International Network
• Resources
Global Marketplace
eCommerce is growing Range of estimates:
2020 market
•Global e‐commerce has shifted toward expected to be
100 between $60–100B
an increase in small, lightweight Global market for international
shipments directly to consumers homes. express and small parcels ($B)
$80B
80
•New markets are becoming more
available to US businesses.
60
•Buyers are demanding more flexibility, $55B
$46B
visibility shipping options. $43B
40
•95% of consumers live outside the USA
so there are opportunities for growth.
20
0
2012 2013 2014E 2020E
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5/16/2017
eCommerce Is Becoming More Mobile
The growth of mobile commerce outpaces overall ecommerce
sales growth
SOURCE: IBM ONLINE COMMERCE INDEX
Global Parcel Market Forecast
Worldwide Parcels Market Forecast by Region 2014-2020 ($Millions)
Region 2015 2016 2017 2018 2019 2020 CAGR
Africa $4,558 $4,898 $5,236 $5,599 $5,946 $6,297 6.7%
Asia Pacific $81,296 $89,659 $97,051 $104,621 $112,371 $120,054 8.6%
Europe $62,036 $64,514 $67,316 $70,566 $73,032 $75,350 4.1%
Middle East $8,703 $9,168 $9,664 $10,190 $10,763 $11,400 5.5%
North America $79,850 $82,250 $85,130 $87,950 $90,850 $93,725 3.3%
South America $9,657 $10,506 $11,246 $12,073 $12,735 $13,403 6.7%
Total $246,101 $260,995 $275,644 $290,999 $305,696 $320,230 5.6%
Source: Apex Insight
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5/16/2017
Changes In U.S. Air Export Top 10 Destinations (2012 vs. 2016)
FH CY-2012 FH CY-2016
Business Cross Border Destinations Business Cross Border Destinations
Canada
Canada 12%
20%
United
Other Other Kingdom
39% 39% 10%
United
Kingdom
China
7%
7%
Australia
7% Australia
6%
Japan Japan
6% 6%
China
Singapore 5%
Hong Kong
3% 3%
South Korea Germany
3% Brazil France Germany Netherlands South Korea France
4% 6%
3% 3% 3% 4% 4%
Source: The Colography Group, Inc. ©2017 CGI all rights reserved.
Note: Colography estimates of carrier non-household shipments were distributed to destination country using a combination of data from the U.S. Air Export Hinged Supplemental Add-On Survey to The Colography Group’s National Survey Of U.S.
Expedited Cargo and various secondary sources (including the U.S. Postal Service billing determinant data).
Note: Includes GXG, PMEI, PMI and FCPIS. The report follows USPS guidance by considering Puerto Rico as a domestic destination.
Note: Hong Kong and the Netherlands replaced Brazil and Singapore in the FH CY-2012 top 10 total countries.
Top Cross Border e‐Commerce Products From The U.S.
Examples of Products
CLOTHING & BOOKS, DVDs, COMPUTER HARDWARE TOYS & COSMETICS &
ACCESSORIES CDs & SOFTWARE HOBBIES BEAUTY PRODUCTS
FLOWERS & FOOD CELLPHONES & SPORTING AUTOMOBILE
GIFTS (GROCERIES & DELICACIES) ACCESSORIES GOODS PARTS
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Importance Of Options When Checking Out Online
Free shipping options 81%
Having a variety of payment options in addition to a credit card 54%
Order history, so I can see everything I’ve bought 50%
Estimated or guaranteed delivery date 62%
Provide estimated delivery date and shipping costs early
63%
in the process
A login so the site can remember my purchasing 51%
preferences (e.g., credit card number)
Ability to select delivery location that is convenient to me 37%
Remember me so I don’t have to refill my shopping cart or
51%
rekey information if I already started an order
Show me other items I might be interested in 31%
Flat rate shipping options 43%
Expedited shipping options so I can get my purchase faster
35%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: Secondary empirical research
Note: Respondents may choose more than one option. N=5,849
Reasons For Abandoning Online Shopping Cart
I was not ready to purchase, but wanted to
get an idea of total cost with delivery
57%
Shipping costs made the total purchase
cost more than expected 58%
My order value wasn’t large enough to
qualify for free shipping 50%
I wanted to complete the purchase, but got
distracted and forgot 24%
My preferred payment option was not
offered
25%
0% 10% 20% 30% 40% 50% 60% 70%
N = 5,241
Source: Secondary empirical research
Note: Respondents may choose more than one option. N=5,849
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5/16/2017
Catering to a New Generation
What Is Customs?
• An law enforcement agency that safeguards the interests of a country with respect to what can enter
and cannot enter
• Collects customs duties and taxes for a government
The import or export of some goods may be forbidden by restrictions or stimulated by trade
agreements
Levy tariffs and taxes on the import of goods to protect jobs and industries in a country
Customs uses the Harmonized Tariff Code to determine the amount of duty and tax to be
assessed upon entry
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Harmonized System
• The Harmonized Commodity Description and Coding System (HS) is an internationally standardized
system of names and numbers for classifying traded products
• A tax rate is assigned to each Harmonized Tariff Code (HTC); these rates make up the Tariff Schedule
• The HTC is what the US Census Bureau uses to track trade statistics between countries
• U.S. Census Bureau Regulation
Harmonized System
• Harmonized Codes, although extremely helpful to the Customs agent in the destination country, are not
mandatory on Customs documents.
• Verbal descriptions can be used as long as they explain:
What the commodity is (i.e. Short Sleeve Shirt)
What its used for (Men’s Golf Shirt)
What its made of (Polyester 60% - Cotton 40% Blend)
• You must also use the retail value at which it was sold for to the buyer. Not the cost to produce or replace
the item.
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5/16/2017
Harmonized System
Anatomy Of A Harmonized Tariff Code
1234567890
The first six digits of the HTF code describes what the item is.
The next two digits describe where the commodity originates.
The last two digits describe where the commodity is going.
Printing Customs Forms
PC Postage Vendors Global Shipping Software
System Click-N-Ship for Business
(GSS)
Key features Free Easy installation Web-enabled tool
Use from any Rate comparison for large USPS
desktop between USPS and volume shippers
computer competitors Postage manifesting
Address book Typically offers a Prints Customs and
(unlimited names) 30-day free trial and shipping labels
Customs form with savings analysis Duty and Tax
round-date Duty and Tax estimation
provided estimation HTS Assistance
Pay with Credit Tracking Tracking
Card
For more usps.com usps.com Local International Sales
information Executive
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5/16/2017
PS Form 6182, Commercial Invoice
Use only with GXG
PS Form 6182 is used
Only for GXG letters and packages
Refer to Global Express Guaranteed
Service Guide, Publication 141 for
more information
Form PS 2976 / CN22
Form PS 2976 for FCMI or
FCPIS:
• Have a maximum value of
$400
• Weigh more than 16 ounces,
or are parcel shaped
• Contain goods
• Also may be used on certain
PMEI items, M‐Bags, ISAL
and IPA parcels, and the PMI
Small Flat Rate Box and Flat
Rate Envelope.
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5/16/2017
Form PS 2976‐A / CP72
Form PS 2976‐A for:
• Items valued
over $400
• All PMI parcels,
regardless of
weight or
contents
Form PS 2976‐B / CP72
105/16/2017
USPS Delivers Reliable Service With Many Shipping Options
USPS has the largest partnership network worldwide - giving you choices
• Nearly 1 billion pieces delivered annually by our Postal partners around the world.
• We have the widest range of services available to US shippers.
• Largest member of the Universal Postal Union (UPU) which
governs Postal operations.
• Alliance Partners that enhance global delivery and
scanning performance.
• Flexible Pricing Options.
Shipping Services Offered In The Marketplace
Price GXG
Higher
PMEI
PMI
FCPIS
Lower
Service
Slower Faster
115/16/2017
USPS International Package Services
Priority Mail Express
Global Express Guaranteed Priority Mail International
International
(GXG) (PMI)
(PMEI)
Delivery 1-3 business days 3-5 business days 6-10 business days
Money-back guarantee to 16
Guarantee Money-back guarantee
destinations*
None
Date-certain delivery to about Date-certain delivery to select
Date-Certain Delivery 180 countries destinations
None
Tracking Tracking
Discounts Discount option from Retail with Commercial Base and GEPS Pricing
Insurance included: $200 – merchandise and
Insurance $100 insurance included
$100 – documents
Affordable and fast international
Our fastest door to door delivery. delivery.
No dimensional weight charges.
No dimensional weight charges.
Features
Overnight to most major markets in Free return of undeliverable
Canada. packages. Flat-Rate options available.
Flat-Rate options available.
*PEMI Guaranteed destinations are Australia, Canada, China, France, Germany, Hong Kong, Israel, Japan, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand and the United Kingdom
USPS International Package Services
First-Class Package International First-Class Mail International Service
Service (FCPIS) (FCM)
Delivery Varies by Destination Varies by Destination
USPS Electronic Delivery
Tracking Confirmation (eDelcon) and None
tracking available to 23 countries.
Economical shipping for letters,
postcards, and flats weighing up to 4 lbs.
Ideal for cross-border e-Commerce.
Starting at $1.20 for any 1-oz. Letter or
International shipping for lower- postcard to anywhere in the world
Features value, lightweight items. (includes 2-oz letters to Canada).
Discount option with Commercial Registered Mail service available.
Base and Commercial Plus Pricing.
Can be used with authorized PC Postage
vendors.
125/16/2017
Published Transit Times Of USPS Expedited Package Services vs. Our Competitors
1For many major markets, the average number of business days may vary. See Publication 141 for more information.
2For many major markets, average number of business days may vary based upon origin and destination.
U.S. Air Export Comparison: Expedited New York, NY to Toronto, Canada
Service Rate (2lbs.) Transit
USPS PMEI $47.03 5
FedEx IE $83.06 2
UPS Expedited $86.52 2
Baltimore, MD to Beijing, China
Service Rate (2lbs.) Transit
USPS PMEI $64.03 5
FedEx IE $116.63 5
UPS Expedited $117.57 5
Miami, FL to London, United Kingdom
Service Rate (2lbs.) Transit
USPS PMEI $63.41 4
Los Angeles, CA to Tokyo, Japan FedEx IE $108.01 4
Service Rate (2lbs.) Transit UPS Expedited $111.60 4
USPS PMEI $67.93 5
FedEx IE $104.57 4
UPS Expedited $102.78 4
Note: The above rates are 2017 published commercial rates. May 2017 international fuel surcharges for FedEx (3.5%) and UPS (5%) are included in the above rates as well as residential surcharges for FedEx ($3.85) and UPS ($4.00). All other surcharges
excluded.
135/16/2017
Application Of Overlooked Export Costs
• Shippers often overlook costs that can significantly increase their rates.
Example Charge PMI International Ground
Weight: 4lbs. Base Rate (4lbs.) $37.43 $22.86
+ Residential Surcharge $0.00 $4.00
Value: $22.00 + Fuel Surcharge $0.00 $0.94
O&D: B2C Transportation Only $37.43 $27.80
From: New York, NY Other Fees
+ Harmonized Sales Tax $0.00 $1.48
To: Toronto, CAN + Clearance Entry Fee $0.00 $11.38
+ Duties and Taxes Unknown Unknown
Total Cost $37.43 $40.66
Sources: USPS, FedEx
Note: The above rates are 2017 published commercial rates. The declared value of the merchandise in the above example was $40. The FedEx international fuel surcharge for the week of May 1, 2017 is 3.5%.
Surcharges * SURCHARGES USPS UPS FEDEX DHL
4.25% (thru 4.50% (thru 0.00% (thru
Fuel Surcharge N/A 6.3.15) 5.31.15) 5.31.15)***
Additional Handling N/A $8.50 $8.50
Address Correction N/A $12.00 $12.00 $11.00
Certificate or Origin (Per shipment) N/A $10.00 $10.00
Min. $25 –
Greater of $10 Max $485
Customs Brokerage Fees (Optional) Min. $25.25 for per shipment or per shipment
Merchandise Processing (DHL) 0.3464% N/A Canada $0.50 per lb. (0.3464%)
Declared Value (amt. per $100.00 in value) $0.85 per $100 $0.85 per $100 $0.90 per $100
Minimum Charge (over $100 in value) N/A min $2.55 min $2.55 min $2.90
Delivery Signature N/A $2.00 $2.00
Delivery Signature, Adult N/A $4.75 $4.50
Delivery, Direct Signature Req’d N/A $3.75 $3.50
Dimensional Weight Factor: 166
( (L x H x W) / __ ) = DW applies to
Round up to nearest pound GXG Only 139 139 139
Electronic Export Information (per
shipment) N/A $10.00 $10.00
Excessive Tracking, Tracing and
Refund Requests N/A $3.00
Greater of $30 Greater of $30 Greater of $30
Extended Area / Out-of-Delivery Area per shipment per shipment per shipment
Surcharge N/A or $0.26 LB or $0.26 LB or $0.26 LB
* Does not include all published surcharges
145/16/2017
OUTBOUND
Country PMEI PMI FCPIS
% w Delivery Scan
International Product 1 AU AUSTRALIA 97% 97% 93%
2 BR BRAZIL 87% 96% 97%
Scanning Performance for 3 CA CANADA 97% 98% 98%
4 CL CHILE 95% 93% na
U.S. Exports * 5 CN CHINA 96% 86% na
6 DK DENMARK 92% 91% 90%
7 FR FRANCE 96% 95% 89%
8 DE GERMANY 91% 91% 94%
9 GR GREECE 97% 94% na
10 HK HONG KONG 99% 97% 100%
PMEI 11
12
IN
IE
INDIA
IRELAND
92%
95%
74%
97%
na
97%
13 IL ISRAEL 97% 89% 94%
PMI 14
15
IT
JP
ITALY
JAPAN
94%
98%
94%
99%
95%
98%
FCPIS 16
17
KR
MX
KOREA, REPUBLIC OF
MEXICO
98%
61%
98%
36%
na
44%
18 NL NETHERLANDS 97% 98% 96%
19 NZ NEW ZEALAND 94% 93% 95%
20 NO NORWAY 97% 97% 82%
21 PH PHILIPPINES 93% 60% na
22 RU RUSSIAN FEDERATION 95% 93% na
23 SG SINGAPORE 97% 97% 97%
24 ES SPAIN 79% 77% 98%
25 SE SWEDEN 98% 98% 98%
26 CH SWITZERLAND 98% 98% 97%
27 TW TAIWAN, PROVINCE OF CHINA 98% 98% na
28 TH THAILAND 98% 95% na
29 AE UNITED ARAB EMIRATES 98% 94% na
30 GB UNITED KINGDOM 97% 98% 94%
•Rolling 12 months: April 2016 – March 2017
Source: PMI/PMEI Outbound data – April 2016 – March 2017 ISBDS Scanning Performance Report
FCPIS Outbound data – FCPIS_Outbound_Scan_Performance_Report: IPC Flat Files from the Item Tracking Data Download Centre Updated: March 2017, quarterly
Allegiances And Agreements
International Post Corporation (IPC)
Universal Postal Union (UPU) 24 Postal Operators from Europe, North America, Asia/Pacific that
manages PRIME, INTERCONNECT Programme, and cooperates
Specialized UN agency that establishes uniform processes for the with KPG.
INTERCONNECT
exchange of international mail and packages among 192 member The IPC e-Commerce INTERCONNECT Programme (eCIP) lays down
countries; establishes international rates for delivery of letters and the foundation for a global seamless network allowing posts to offer
parcels; and sets service standards and performance measurement consumers and e-retailers, tracked, end-to-end delivery service.
systems.
PRIME
Agreement for light-weight packages (FCPIS) that sets bonus rates
EMS Cooperative based on delivery scanning score and on-time delivery performance.
Optional UPU program that establishes rate framework and
standardized processes for EMS (170 members).
Bilateral
Kahala Posts Group (KPG) Agreement between USPS and a foreign post that may set rates,
International alliance focused on providing high quality EMS improve service standards, introduce new products, facilitate
through enhanced processing, logistics, visibility, and date certain cooperation to grow revenues and market share, and integrate IT
guarantee. and accounting systems.
155/16/2017
ISC Worldwide Distribution
PMEI - 3-5 Business Days USPS uses a combination of Commercial Airlines and
Freight Carriers to move product from the 5 ISC’s to the
PMI - 6-10 Business Days world. Our carrier network provides guaranteed space and
FCPIS/CeP- No Published allows us to react quickly when faced with challenges
Transit Times moving packages whether they be weather, carrier or
destination country related.
*Note – Approximate times shown. Transit times depend on specific products and destinations. Routings shown do not represent specific flights and/or destination countries.
Global Direct Entry: Features
• Door-to-door service in 4-8 days
• Integrated shipping platform for package preparation
• Customs clearance
• End-to-end visibility
• Courier level expedited shipping service
• Competitive pricing well below courier rates
• Provider as single point of contact for customer service
• Shipments have look and feel of a domestic shipment
165/16/2017
How Does Global Direct Entry Work?
GDE Life Cycle
• Pick up parcels from offshore customers
• Print labels and postage using USPS Global Shipping Software or PC Postage equivalent
• Consolidate parcels-by air or sea
• Arrive at destination and clear customs (no duty for parcels valued at $800 or less going to 1
addressee on a single day)
• Hand over parcels to the USPS for final delivery
Two Methods To Send Multiple Packages To The U.S.
One-to-One Shipments One-to-Many Shipments
x x
Faster (1-4 days) Transit Steady (5-8 days)
Expensive Price Economical
175/16/2017
Full‐Service Shipping Worldwide
With shipping to over 180 countries across the world, USPS® can help you:
• No fuel surcharge
• No delivery area surcharge
• No extended delivery area surcharge
• No residential surcharge
• No dimensional weight charge
• Comprehensive delivery network
Helping Customers Grow
• Our goal is to help customers grow their business
by expanding beyond U.S. borders.
• We have implemented world class mailing
solutions:
Reliable track and trace
Service performance
• Provide enhanced Global Network.
• Grow your share of the e-Commerce Market.
185/16/2017
Resources
• USPS International Welcome Page
https://www.usps.com/international/welcome.htm
• Customs Forms & Requirements
https://www.usps.com/international/customs-forms.htm
• International Mail Manual (IMM)
http://pe.usps.gov/text/imm/welcome.htm
http://pe.usps.com/
• USPS Service Pricing
http://pe.usps.com/text/dmm300/Notice123.htm#wp1116072
• Export Regulations, Harmonized Tariff Codes
http://www.export.gov
• Globalbusiness-sales@usps.com
Thank You
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