David Krassnoff

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David Krassnoff Global Accounts Manager
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Growing Your Business Globally Agenda Small
business opportunities in the global economy
USPS solutions for growing your business
globally Preparing your global shipments
Summary and customer questions References
Resources
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The Number of U.S. Small Business Exporters is
Growing
Small and medium-sized enterprises (SMEs) account
for the vast majority of growth in new exporters.

• More than 66 of exporters have fewer than 20
  employees.
• 97 of U.S. exporters are SMEs
• SMEs account for 30 of the total export value of
  US goods.
• Nearly two-thirds of SME exporters only sell to
  one foreign market

Source Export.gov, US Department of Commerce
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US Exports to Destination Countries
Census Bureau Statistics from Jan-Dec 2007, in
billions of US
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• USPS Global Shipping Options
• There are four core package services
• Global Express Guaranteed envelopes and
  packages (13 business days)
• Express Mail International (35 business days)
• Priority Mail International (610 business
  days)
• First-Class Mail International (delivery time
  varies by destination)

Average number of days may depend on origin and
destination. Visit usps.com/international for
more information.
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• Global Express Guaranteed (GXG)
• Our fastest date-certain service with Global
  delivery by FedEx Express
• 13 business days
• Starting at 31.95

Average number of days may depend on origin and
destination. Visit usps.com/international for
more informationFedEx Express is a registered
trademark of the Federal Express Corporation and
is used by permission. on.
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• Global Express Guaranteed (cont.)
• Benefits include
• Money-back guarantee
• 100 Insurance included
• Online postage discount 10
• Tracking to all destinations
• Free Package Pickup

For complete details on Free Package Pickup,
visit usps.com
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• Express Mail International
• Fast, reliable service with date-certain delivery
  to select countries.
• 35 business days
• Starting at 25.95 (Flat Rate Envelope)

Average number of days may depend on origin and
destination. Visit usps.com/international for
more information.
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• Express Mail International (cont.)
• Benefits include
• Money-back delivery guarantee to Australia,
  China, Japan, Hong Kong, South Korea, Great
  Britain and Spain
• Flat Rate Envelope available
• 100 Insurance included
• Online postage discount 8
• Tracking available to major destinations
• Free Package Pickup

For complete details on Free Package Pickup,
visit usps.com Date-certain service to Great
Britain and Spain begins February 23, 2009
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• Priority Mail International
• Unbeatable rates on reliable delivery of
  documents and packages.
• 610 business days
• Starting at 10.95 for a Flat Rate Envelope or
  Small
  Flat Rate Box
• No tracking or insurance
• 4 Pound maximum weight
• Single package prices start at 19.00
• Regular Flat Rate Box starts at 25.95
• Large Flat Rate Box 32.95

Average number of days may depend on origin and
destination. Visit usps.com/international for
more information.
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• Priority Mail International (cont.)
• Benefits include
• Flat rate options
• Registered Mail service (Flat rate envelope and
  Small Flat Rate Box)
• Insurance (Parcels only)
• Built-in indemnity (Parcels only)
• Online postage discount 5
• Tracking available (Parcels only)
• Free Package Pickup

For complete details on Free Package Pickup,
visit usps.com
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First-Class Mail International

• Economical shipping for letters, postcards, and
  items weighing up to four pounds.
• Transit time varies by destination
• Starting at 0.72
• Registered Mail service available
• Can be used with various PC Postage vendors

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• Product Offering Comparison

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The World of SurchargesSending a 5 lb package to
Alice Springs, Australia 0870100 value, No
Special Services
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Summary

• The US Postal Service offers four core global
  package products
• Global Express Guaranteed (GXG)
• Express Mail International (EMI a.k.a. EMS)
• Priority Mail International (PMI)
• First Class Mail International (FCMI)
• We have several advantages over the competition
• No fuel or out of area surcharges
• No brokerage fees
• Same speed at a much lower price

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The Global View of Shipping Customs

• Customs Overview
• International shipments may be subject to customs
  examination in the destination country
• Customs requirements and restrictions or
  prohibitions are specific to the destination
  country
• If duties or taxes are assessed, most countries
  will collect from the recipient a customs
  clearance and delivery fee, in addition to the
  duties and taxes.

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Global Shipping Duties and Taxes
Duties and Taxes are the responsibility of the
buyer

• A Duty is a government tax on imports or exports
• Duties vary by country and by product origin
• Under Free Trade Agreements (i.e. NAFTA) certain
  items travel duty-free across borders
• Duties are typically 12-20 of product price
  based on product characteristics, (see
  www.trade.gov)

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Global Shipping Restricted Items

• In addition to US restrictions for mailing, there
  are country specific restrictions. For example
• Italy footwear, artificial flowers, photo albums
• Greece playing cards
• South Korea salt, textile fabrics
• Israel dairy products, soil, sand
• Mexico chocolate is restricted

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Global Shipping Customs Forms
PS 2976 or CN 22 (the green and white form)

• Used mostly for documents and printed matter

• Form PS 2976 is used for items that
• Are valued under 400
• Weigh more than 16 ounces (one pound)
• Are potentially dutiable (exceed threshold in
  foreign country)

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Global Shipping Customs Forms
PS Form 2976 A or CP 72 (the wide, white form)
Use when sending merchandise
PS Form 2976-A is used

• Primarily for package
• Is attached to the package in a 2976-Eclear
  envelope
• File items valued higher than 2500 or that
  require an export license

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Global Shipping Customs Forms
PS Form 6182, Commercial Invoice (the long, white
form)
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

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Postal Explorer has the information you need
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Online Shipping Labels

• Mailing Label and Customs form combined into one
• Hassle-free and easy International Shipping
  Online

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Online shipping features and benefits

• Pay for postage Automatic incentives on GXG
  (10), EMI (8), and PMI (5) Accepts major
  credit cards
• Print labels and forms Packaging labels with
  tracking numbers Customs forms
• Manage shipments Arrange pickup Provide
  notification to customers

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Value-Added Services
USPS offers more bang for the buck...or Euro...or
Pound Sterling
Online Convenience

• Pay for postage and receive discounts
• Print customs forms and postage statements
• Track Shipments

Other Benefits

• Eco-friendly (and free) packaging
• Free Package Pick-Up
• Volume Letter Options
• Customized Agreements and Volume Discounts

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• Global Commercial Mailing options
• International Priority Airmail (37 business
  days)
• International Surface Air Lift (714 business
  days)
• Global Direct
• (Service varies by country and class of
  service)

Average number of days may depend on origin and
destination. Visit usps.com/international for
more information.
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International Priority Airmail (IPA) What It Is

• 3 to 7 day service - comparable to domestic
  First-Class Presort - for items weighing up to 4
  pounds
• Rates significantly lower than regular
  single-piece Airmail
• Typically used for letter mail (i.e. financial
  statements, business correspondence), direct
  mail, catalogs, pubs, other types of printed
  matter, merchandise packages
• Transported by air directly to the destination
  country, then handled as First-Class Type Mail
• Service available to all countries

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International Surface Air Lift (ISAL) What It Is

• 7 to 14 day service - comparable to domestic
  Standard Mail
• Lower rates than IPA
• For items weighing up to 4 pounds (including
  merchandise packages)
• Typically used for direct mail, catalogs,
  publications, other types of printed matter as
  well as merchandise packages
• Transported by air to the destination country,
  then handled as Standard Type Mail

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IPA or ISAL Mail Piece

• ABC
• 2701 East Imhoff Road
  
  
• Norman, OK 73071
  
• USA
• 
  PAR AVION
  
  
• Sr. D. Juan Lopez
• Alcala,
  142
• 28009 MADRID
• SPAIN

U.S POSTAGE PAID CHICAGO IL 60688 PERMIT NO.
456
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Benefits of using IPA or ISAL for volume letter
mail

• Savings cost is significantly lower
  thanFirst-Class Mail International
• Security official Postal handling from
  acceptance to delivery
• Free return delivery direct return of
  undeliverable mail
• U.S. identity U.S. return address and U.S.
  Postal Service markings

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Global Direct What It Is

• A direct entry service by which items are mailed
  through USPS that have the appearance of domestic
  mail in the destination country
• - Indicia and postal markings of destination
  country
• - Return address of destination country
• Currently available to Canada
• Available only through a global customized
  agreement
• Current Focus Expansion to other countries
  initially UK and Australia

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Global Direct - Canada

• MAPLE LEAF BANK
• 115 PRINCE STREET
• OTTAWA ON K1G ON2
• MR. MICKEY MOUSE
• 100 DOGSLED DRIVE
• WHITEHORSE YT
  Y1A 1C2

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• Postal Qualified Wholesalers (PQWs)
• PQWs are independent Postal-approved wholesalers
  that help customers prepare and dispatch global
  commercial mailings.
• Determine optimal solutions
• Arrange pickup
• Prepare/sort/mail
• Interface with carrier
• Provide customer support

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• Global customized agreements
• Customized agreements contain solutions tailored
  to meet your business needs.
• Package incentive opportunities Global
  Expedited package service incentive Express
  Mail Corporate Account incentives
• Volume incentives and customized services
  from published IPA /ISAL rates and services

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Summary Value Added Services

• There are several online options to help you
• Pay for postage
• Print shipping labels and customs forms
• Manage your global shipments
• USPS offers global bulk letter mailing options
• IPA is similar to presorted first class
• ISAL is similar to standard mail
• There are greater discount possibilities beyond
  online incentives through Global Customized
  Agreements

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USPS Reference Material

• USPS Publications/OnlineResources
• International Mail Manual (IMM)
  http//pe.usps.gov/text/imm/welcome.htm
• Global Express Guaranteed Service Guide (Pub.
  141) http//www.usps.com/cpim/ftp/pubs/pub141.pdf
• International Inquiries and Claims (usps.com)
  http//www.usps.com/insuranceclaims/intlclaims.htm
  
• International Resource Center http//www.usps.com/
  international/intlresourcecenter.htm
• Supplies www.usps.com/supplies
• International Rate Calculator http//ircalc.usps.g
  ov/
• Carrier Pickup https//carrierpickup.usps.com
• Other Resources
• Universal Postal Union www.upu.int
• Export Information - www.export.gov ,
  www.trade.gov
• Estimate of duties and taxes- http//ita.doc.gov
  or call 1-800-USA-TRADE
• Proof of Filing Citation for items valued over
  2500 go to www.aes.direct
• Proof of Filing citation for items requiring an
  export license go to www.export.gov/regulation/ex
  p_reg_licenses.asp or call 1-800-USA-TRAD(E).

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Thank you for this opportunity to speak with you
about working together to pursue global business
opportunities. David Krassnoff Global Accounts
Manager USPS Global Business David.M.Krassnoff_at_usp
s.gov