USPS Comments on Proposed Changes to Terminal Dues Structure
Posted on July 28th, 2016

The U.S. Postal Service has submitted comments to the Postal Regulatory Commission about proposed changes to the Universal Postal Union (UPU) terminal dues structure, which will be on the agenda at the 2016 UPU Congress, scheduled for September 19 – October 6 in Istanbul.  The terminal dues system is a means for UPU member countries to provide remuneration to their designated operators for the reciprocal exchange of international letter post mail under a worldwide universal service obligation.
The major change to the UPU terminal dues system proposed to the 2016 UPU Istanbul
Congress is an additional separate rate for the E format packets to account for their different processing costs, which will vastly improve cost coverage on these parcel-shaped items under UPU terminal dues rates.
In the submission to the PRC, USPS states that the UPU’s Council of Administration and Postal Operations Council compromise proposals are reasonable and, particularly if the Commission adjusts its application of the price cap, should improve the finances and stability of the Postal Service.
To read the full text of the submission, click here.

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