Global Shipping 101. A Step by Step Guide. Frank A. Cebello USPS. Director, Global Business Solutions (A) Darren D. Lamb Colography Group Inc.

Transcription

1 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 1

2 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 Global e commerce has shifted toward an increase in small, lightweight shipments directly to consumers homes. New markets are becoming more available to US businesses. Buyers are demanding more flexibility, visibility shipping options. 95% of consumers live outside the USA so there are opportunities for growth Global market for international express and small parcels ($B) $43B $46B $55B Range of estimates: 2020 market expected to be between $60 100B $80B E 2020E 2

3 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 ($Millions) Region CAGR Africa $4,558 $4,898 $5,236 $5,599 $5,946 $6, % Asia Pacific $81,296 $89,659 $97,051 $104,621 $112,371 $120, % Europe $62,036 $64,514 $67,316 $70,566 $73,032 $75, % Middle East $8,703 $9,168 $9,664 $10,190 $10,763 $11, % North America $79,850 $82,250 $85,130 $87,950 $90,850 $93, % South America $9,657 $10,506 $11,246 $12,073 $12,735 $13, % Total $246,101 $260,995 $275,644 $290,999 $305,696 $320, % Source: Apex Insight 3

4 Changes In U.S. Air Export Top 10 Destinations (2012 vs. 2016) FH CY-2012 Business Cross Border Destinations FH CY-2016 Business Cross Border Destinations Other 39% Canada 20% United Kingdom 7% Other 39% Canada 12% United Kingdom 10% China 7% Australia 7% Australia 6% Singapore 3% South Korea 3% Brazil France 3% 3% Japan 6% China 5% Germany 4% Hong Kong 3% Netherlands 3% South Korea 4% France 4% Japan 6% Germany 6% Source: The Colography Group, Inc 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 & ACCESSORIES BOOKS, DVDs, CDs COMPUTER HARDWARE & SOFTWARE TOYS & HOBBIES COSMETICS & BEAUTY PRODUCTS FLOWERS & GIFTS FOOD (GROCERIES & DELICACIES) CELLPHONES & ACCESSORIES SPORTING GOODS AUTOMOBILE PARTS 4

5 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 Estimated or guaranteed delivery date Provide estimated delivery date and shipping costs early in the process A login so the site can remember my purchasing preferences (e.g., credit card number) Ability to select delivery location that is convenient to me Remember me so I don t have to refill my shopping cart or rekey information if I already started an order Show me other items I might be interested in 31% 37% 50% 51% 51% 62% 63% Flat rate shipping options Expedited shipping options so I can get my purchase faster 35% 43% 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 5

6 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 6

7 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. 7

8 Harmonized System Anatomy Of A Harmonized Tariff Code 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 System Click-N-Ship for Business PC Postage Vendors Global Shipping Software (GSS) Key features Free Use from any desktop computer Address book (unlimited names) Customs form with round-date provided Pay with Credit Card For more information Easy installation Rate comparison between USPS and competitors Typically offers a 30-day free trial and savings analysis Duty and Tax estimation Tracking Web-enabled tool for large USPS volume shippers Postage manifesting Prints Customs and shipping labels Duty and Tax estimation HTS Assistance Tracking usps.com usps.com Local International Sales Executive 8

9 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. 9

10 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 10

11 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 Lower Slower FCPIS Faster Service 11

12 USPS International Package Services Global Express Guaranteed (GXG) Priority Mail Express International (PMEI) Priority Mail International (PMI) Delivery 1-3 business days 3-5 business days 6-10 business days Guarantee Date-Certain Delivery Tracking Discounts Insurance Money-back guarantee Date-certain delivery to about 180 countries Money-back guarantee to 16 destinations* Date-certain delivery to select destinations Tracking None None Discount option from Retail with Commercial Base and GEPS Pricing $100 insurance included Insurance included: $200 merchandise and $100 documents Features Our fastest door to door delivery. Overnight to most major markets in Canada. Affordable and fast international delivery. No dimensional weight charges. Free return of undeliverable packages. Flat-Rate options available. No dimensional weight charges. 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 Service (FCPIS) First-Class Mail International Service (FCM) Delivery Varies by Destination Varies by Destination Tracking Features USPS Electronic Delivery Confirmation (edelcon) and tracking available to 23 countries. Ideal for cross-border e-commerce. International shipping for lowervalue, lightweight items. Discount option with Commercial Base and Commercial Plus Pricing. None Economical shipping for letters, postcards, and flats weighing up to 4 lbs. Starting at $1.20 for any 1-oz. Letter or postcard to anywhere in the world (includes 2-oz letters to Canada). Registered Mail service available. Can be used with authorized PC Postage vendors. 12

13 Published Transit Times Of USPS Expedited Package Services vs. Our Competitors 1 For many major markets, the average number of business days may vary. See Publication 141 for more information. 2 For 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 $ FedEx IE $ UPS Expedited $ Baltimore, MD to Beijing, China Service Rate (2lbs.) Transit USPS PMEI $ FedEx IE $ UPS Expedited $ Los Angeles, CA to Tokyo, Japan Service Rate (2lbs.) Transit USPS PMEI $ FedEx IE $ UPS Expedited $ Miami, FL to London, United Kingdom Service Rate (2lbs.) Transit USPS PMEI $ FedEx IE $ UPS Expedited $ 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. 13

14 Application Of Overlooked Export Costs Shippers often overlook costs that can significantly increase their rates. Example Weight: 4lbs. Value: $22.00 O&D: B2C Charge Base Rate (4lbs.) + Residential Surcharge + Fuel Surcharge Transportation Only PMI $37.43 $0.00 $0.00 $37.43 International Ground $22.86 $4.00 $0.94 $27.80 From: To: New York, NY Toronto, CAN Other Fees + Harmonized Sales Tax + Clearance Entry Fee $0.00 $0.00 $1.48 $ Duties and Taxes Total Cost Unknown $37.43 Unknown $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 Fuel Surcharge N/A 4.25% (thru ) 4.50% (thru ) Additional Handling N/A $8.50 $ % (thru )*** Address Correction N/A $12.00 $12.00 $11.00 Certificate or Origin (Per shipment) N/A $10.00 $10.00 Greater of $10 per shipment or $0.50 per lb. Customs Brokerage Fees (Optional) Merchandise Processing (DHL) % N/A Min. $25.25 for Canada Declared Value (amt. per $ in value) $0.85 per $100 Minimum Charge (over $100 in value) N/A min $2.55 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 $0.85 per $100 min $2.55 Min. $25 Max $485 per shipment (0.3464%) $0.90 per $100 min $2.90 Dimensional Weight Factor: ( (L x H x W) / ) = DW Round up to nearest pound 166 applies to GXG Only Electronic Export Information (per shipment) N/A $10.00 $10.00 Excessive Tracking, Tracing and Refund Requests N/A $3.00 Extended Area / Out-of-Delivery Area Surcharge * Does not include all published surcharges N/A Greater of $30 per shipment or $0.26 LB Greater of $30 per shipment or $0.26 LB Greater of $30 per shipment or $0.26 LB 14

15 International Product Scanning Performance for U.S. Exports * PMEI PMI FCPIS 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 OUTBOUND Country PMEI PMI FCPIS % w Delivery Scan 1 AU AUSTRALIA 97% 97% 93% 2 BR BRAZIL 87% 96% 97% 3 CA CANADA 97% 98% 98% 4 CL CHILE 95% 93% na 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% 11 IN INDIA 92% 74% na 12 IE IRELAND 95% 97% 97% 13 IL ISRAEL 97% 89% 94% 14 IT ITALY 94% 94% 95% 15 JP JAPAN 98% 99% 98% 16 KR KOREA, REPUBLIC OF 98% 98% na 17 MX MEXICO 61% 36% 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% Updated: March 2017, quarterly Allegiances And Agreements Universal Postal Union (UPU) Specialized UN agency that establishes uniform processes for the exchange of international mail and packages among 192 member countries; establishes international rates for delivery of letters and parcels; and sets service standards and performance measurement systems. EMS Cooperative Optional UPU program that establishes rate framework and standardized processes for EMS (170 members). Kahala Posts Group (KPG) International alliance focused on providing high quality EMS through enhanced processing, logistics, visibility, and date certain guarantee. International Post Corporation (IPC) 24 Postal Operators from Europe, North America, Asia/Pacific that manages PRIME, INTERCONNECT Programme, and cooperates INTERCONNECT with KPG. The IPC e-commerce INTERCONNECT Programme (ecip) lays down the foundation for a global seamless network allowing posts to offer consumers and e-retailers, tracked, end-to-end delivery service. PRIME Agreement for light-weight packages (FCPIS) that sets bonus rates based on delivery scanning score and on-time delivery performance. Bilateral Agreement between USPS and a foreign post that may set rates, improve service standards, introduce new products, facilitate cooperation to grow revenues and market share, and integrate IT and accounting systems. 15

16 ISC Worldwide Distribution PMEI Business Days PMI Business Days FCPIS/CeP- No Published Transit Times USPS uses a combination of Commercial Airlines and Freight Carriers to move product from the 5 ISC s to the world. Our carrier network provides guaranteed space and allows us to react quickly when faced with challenges 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 16

17 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 17

18 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. 18

19 Resources USPS International Welcome Page Customs Forms & Requirements International Mail Manual (IMM) USPS Service Pricing Export Regulations, Harmonized Tariff Codes Thank You 19