US to Remain in UPU
Great News! The US is to remain in the Universal Postal Union as a compromise deal was reached yesterday.
On Wednesday, September 25th, 2019, the UPU reached an agreement that would see the United States remain within the 144 year-old organization. A compromise deal, called “Option V”, was voted in favor of by over half of the 192-country body.
Option V allows the United States to move to a self-declared rates system for inbound packets and bulky letters starting July 1, 2020. This system will be applied on a reciprocal basis (countries can charge self-declared rates on U.S. packets and bulky letters). The self-declared rate would be set at 70% of an equivalent domestic rate, with a 1% annual increase, subject to a cap of 80% if a country falls below cost coverage as determined by regulators.
As part of the compromise deal, the US will pay an accelerated implementation contribution of $40 million annually, for a five year period, to the Union’s voluntary fund. This contribution is divided into $16 million for postal security AED projects, and $24 million for long-term liabilities.
Though we were prepared to handle any and all repercussions of the US withdrawal from the UPU, we welcome this good news for international shippers. We are excited to continue to provide you with excellent service as we head into the busy holiday season.
For more information, please see the IMAG press release on the matter, here.