Monolith
9Sep/21Off

Agreement Concerning Postal Parcels

On July 1, 2020, USPS increased the fees it collects for incoming packages. International shippers, including from China, now have to pay $US 2.87 per package and US$3.95 per kilogram (about 2.2 pounds). This is a huge increase in shipping costs for small packages from China to the United States. In the past, the cost of sending packages under 4.4 pounds (2 kilos) from China was lower than the cost of sending the same package to the United States. Below is more information about the cheap postage that has fueled micro-commerce in China. In addition to the United States, the World Postal Association has 191 member countries. Starting in July 2020, countries were able to increase the rates they charge for incoming packages from the United States. At the time of this letter, international shipping prices from the United States to more than 30 other countries have increased. Further increases may follow. We participate in the negotiations on free trade agreements (FTA) in collaboration with the Directorate-General for Trade. Postal services are part of the ESTV agreements with regard to regulatory provisions and obligations.

The South China Morning Post reported that China`s small e-commerce businesses will suffer from rising postal costs. However, major Chinese retailers are unlikely to be affected by the contract amendment. Large companies often have demanding logistics processes with several warehouses around the world. Most of them do not send small packages from China to American customers. Postal changes will therefore not put their economic models in turmoil. The UPU, now an arm of the United Nations, was created in 1874 by the Treaty of Bern. Prior to this agreement, the cross-border sending of letters was complicated and often expensive. Some countries had bilateral postal agreements, others did not.

It was difficult to send a letter to someone in a country that did not have an agreement with your country. You have to rely on a transport service. You may even have had to add stamps from each country that went through your letter. Terminal charges collected by the USPS partially offset this price difference. A 2015 report by the Inspector General of the US Postal Service compared these costs. The report showed that Swiss Post made a net profit on international shipments. The losses incurred by international packages were more than covered by exit fees. However, the report found that between 2010 and 2014, losses incurred increased, while outward profits contracted. This is the time when international e-commerce emissions began to flood the United States. The new UPU agreement provides the U.S. with tools to keep the USPS in the black numbers when shipping internationally.. .

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