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USPS Global Services “We Go There”! USPS RETHINK SHIPPING ® USPS Global Services “We Go There”! USPS RETHINK SHIPPING ®

Helping Customers Grow Our goal is to help our customers grow their businesses by Helping Customers Grow Our goal is to help our customers grow their businesses by expanding beyond U. S. borders We have implemented world class mailing solutions Reliable tracking Improved service performance Quality customer service Expanded access Discounts Provide Enhanced Global Network Get your share of the e-Commerce Market 2 USPS® RETHINK SHIPPING

Global Shipping Market The Global market continues to see substantial growth 95% of world’s Global Shipping Market The Global market continues to see substantial growth 95% of world’s population & 66% of the world’s purchasing power is outside the U. S. Currently only 1% of U. S. businesses export Mail Order and E-retailers are the fastest growing segments 3 USPS RETHINK SHIPPING ®

Full-service shipping worldwide With shipping to over 180 countries across the world, USPS® can Full-service shipping worldwide With shipping to over 180 countries across the world, USPS® can help you: Attract new customers. Improve the delivery experience. Build and maintain a loyal customer base. So let’s talk about the core USPS International shipping options!!! 4 USPS RETHINK SHIPPING ®

USPS global shipping solutions to fit your business ® 1. 2. For many major USPS global shipping solutions to fit your business ® 1. 2. For many major markets. Average number of business days may vary. See Publication 141 for more information. For many major markets. Average number of business days may vary based upon origin and destination. This chart demonstrates delivery days/times ONLY and does not compare details on service offerings (such as guarantees) or charges. UPS ®, DHL®, and Fed. Ex® services and times valid as of November 2013; please see UPS Rate and Service Guide, DHL Rate and Service Guide, and Fed. Ex Service Guide for details on services. United States Postal Service ® is a trademark of the United States Postal Service. All other product and service names mentioned are the trademarks of their respective companies. 5 USPS RETHINK SHIPPING ®

Global Express Guaranteed® Offers our fast door-to-door delivery in 1 -3 business days 1 Global Express Guaranteed® Offers our fast door-to-door delivery in 1 -3 business days 1 and overnight to most major markets in Canada service with International transportation and delivery provided by Fed. Ex Express®. You save on international shipping with: Date-certain delivery with money-back guarantee. 2 Advanced tracking. Up-front pricing. 3 Discount options with Commercial Plus®, Commercial Base®, and GEPS pricing. Free insurance on losses up to $100. 4 1. For many major markets. Average number of business days may vary. See Publication 141 for more information at http: //about. usps. com/publications/pub 141/intro 1. htm#Service Some restrictions apply. See Publication 141 for more information at http: //about. usps. com/publications/pub 141/postage-and-fees. htm#Money-Back Additional fees may be assessed, such as customs fees, duties, and taxes; brokerage fees may also be assessed by the destination country. Includes insurance for lost or damaged shipments that is limited to the lowest of $100, the actual amount of loss or damage, or the actual value of the contents. Additional insurance available for purchase, up to $2, 499. 2. 3. 4. 6 USPS RETHINK SHIPPING ®

Priority Mail Express International™ Offers expedited 3– 5 business day delivery 1 to over Priority Mail Express International™ Offers expedited 3– 5 business day delivery 1 to over 180 countries. You save on international shipping with: Tracking with multiple scan points. Date-specified money-back guarantee to select locations. 1 Free insurance on merchandise valued up to $200 and documents valued up to $100. 1 Flat Rate Envelope options. Free return of undeliverable packages. Discount options with Commercial Plus® pricing. 1. Exclusions apply. Please see usps. com ® or a Sales Representative. 7 USPS RETHINK SHIPPING ®

Priority Mail Express International Flat Rate Envelopes Item Size Item No. Priority Mail Express Priority Mail Express International Flat Rate Envelopes Item Size Item No. Priority Mail Express International Flat Rate Envelope 12 -1/2" x 9 -1/2" EP-13 -F Priority Mail Express International Legal Flat Rate Envelope 15" x 9 -1/2" EP 13 -L Priority Mail Express International Padded Flat Rate Envelope 12 -1/2" x 9 -1/2" EP 13 -PE • Max Weight 4 lbs. • Same Features and Benefits as all other PMEI shipments. • Prices are structured based on 8 rate groups 8 USPS RETHINK SHIPPING ®

Priority Mail International® Offers 6– 10 business day priority delivery to global destinations. 1 Priority Mail International® Offers 6– 10 business day priority delivery to global destinations. 1 You save on international shipping with: Parcels offer tracking with multiple scan points Indemnity coverage included free; insurance up to $5, 000 available to certain countries. Multiple Flat Rate options available . 1. For many major markets. Average number of days may vary based upon origin and destination. 9 USPS RETHINK SHIPPING ®

Priority Mail International Flat Rate Parcels Inside Dimensions (L x W x H) Outside Priority Mail International Flat Rate Parcels Inside Dimensions (L x W x H) Outside Dimensions (L x W x H) Item No. Priority Mail International Medium Flat Rate Box 11" x 8 -1/2" x 5 -1/2" 11 -1/4" x 8 -3/4" x 6" O-FRB 1 Priority Mail International Medium Flat Rate Box 13 -5/8" x 11 -7/8" x 3 -3/8" 14" x 12" x 3 -1/2" O-FRB 2 Inside Dimensions (L x W x H) Outside Dimensions (L x W x H) Item No. Priority Mail International Large Flat Rate Box 12" x 5 -1/2" 12 -1/4" x 6" LFRB Priority Mail International Board Game Large Flat Rate Box 23 -11/16" x 11 -3/4" x 3" 24 -1/16" x 11 -7/8" x 3 -1/8" GBFRB Item • Max. weight 20 lbs. • Receives same features as regular PMI parcels 10 USPS RETHINK SHIPPING ®

Priority Mail International Cont… Flat Rate Items Inside Dimensions (L x W x H) Priority Mail International Cont… Flat Rate Items Inside Dimensions (L x W x H) Outside Dimensions (L x W x H) Item No. Priority Mail International Small Flat Rate Box 8 -5/8" x 5 -3/8" x 1 -5/8" 8 -11/16" x 5 -7/16" x 1 -3/4" SFBX Priority Mail International DVD Box 7 -9/16" x 5 -7/16" x 1 -1/8" 8 -3/4" x 5 -9/16" x 1 -1/2" O-DVDS Priority Mail International Large Video Box 9 -1/4" x 6 -1/4" x 2" 9 -9/16" x 6 -7/16" x 2 -3/16" O-1096 -L Item Size Item No. Priority Mail International Flat Rate Envelope 12 -1/2" x 9 -1/2" Item EP 14 -F Priority Mail International Gift Card Flat Rate Envelope 10" x 7" Item EP 14 -GT Priority Mail International Small Flat Rate Envelope 10" X 6" Item EP 14 -B Priority Mail International Window Flat Rate Envelope 10" x 5" Item EP 14 -H Priority Mail International Legal Flat Rate Envelope 15" x 9 -1/2" Item EP 14 -L Priority Mail International Padded Flat Rate Envelope 12 -1/2" x 9 -1/2" Item EP 14 -PE • Max weight 4 lbs. Changed Last Month 2016!!! 11 USPS RETHINK SHIPPING ®

First-Class Package International Service® (FCPIS®) International shipping for lower-value, lightweight items. Ideal for cross-border First-Class Package International Service® (FCPIS®) International shipping for lower-value, lightweight items. Ideal for cross-border e-commerce. Send up to 4 lbs. and up to $400 in value to more than 180 countries. USPS® Electronic Delivery Confirmation™ (e. Delcon) and tracking available via Post Exprès agreement. 1 Commercial e. Packet® available for consolidators to select destinations. LZ USPS® First Class Pkg Intl with E-Del. Con Service Delivery time varies by destination. 1. Available now when shipping online to Australia, Belgium, Brazil, Canada, Croatia, Denmark, Estonia, Finland, France, Germany, Gibraltar, Great Britain, Hungary, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Netherlands, New Zealand, Portugal, Singapore, Spain, and Switzerland. For complete details, see IMM 252. 2, available at http: //pe. usps. com/text/immc 2_022. htm 12 USPS RETHINK SHIPPING ®

First-Class Mail International Service Economical shipping for letters, postcards, and flats weighing up to First-Class Mail International Service Economical shipping for letters, postcards, and flats weighing up to 4 lbs. Transit time varies by destination. Starting at $1. 15 for any 1 -oz letter or postcard anywhere in the world (includes 2 -oz letters to Canada) Can be used with authorized PC Postage® vendors Registered Mail™ service available 13 USPS RETHINK SHIPPING ®

Direct Mail is an Effective Way to Reach Foreign Markets… Canada United Kingdom 78% Direct Mail is an Effective Way to Reach Foreign Markets… Canada United Kingdom 78% agree that mail is a great way for companies to communicate with them 85% of financial services Direct Mail is opened by the recipient 84% feel that a letter is more official than an email 72% say that mail is more private than online communication 70% of mail order and charity mail is opened Japan Direct Mail ranks second among all media types Mail is the second most used ordering method So don’t be afraid to offer Direct Mail solutions to current and potential International customers 14 USPS RETHINK SHIPPING ®

International Priority Airmail® (IPA®) & ® International Surface Air Lift (ISAL) Your best choice International Priority Airmail® (IPA®) & ® International Surface Air Lift (ISAL) Your best choice for international volume mailings of lowvalue, lightweight items weighing up to 4. 4 lbs. and M-bags. Ideal for: E-commerce Catalogs and publications Direct marketing Business and financial mail You get: Free return of undeliverable mail. Items bear U. S. return address and USPS® markings. Direct routing from U. S. to destination country by air. 1 1. Mailings to Canada and Mexico may be dispatched via ground transportation. 15 USPS RETHINK SHIPPING ®

Commercial Outbound e. Packet ™ Economical lightweight e-commerce solution for lightweight, low value merchandise Commercial Outbound e. Packet ™ Economical lightweight e-commerce solution for lightweight, low value merchandise <2 k 4 -7 day Transit time Postal Customs Clearance Delivery confirmation Free returns on undeliverables (same process as IPA) Available to 27 countries: through PQWs. 16 USPS RETHINK SHIPPING ®

Commercial Outbound e. Packet ™ Pricing – piece plus pound structure - country price Commercial Outbound e. Packet ™ Pricing – piece plus pound structure - country price groups (similar to IPA). ISC drop ship rates only Available thru PQWs Acceptance Scan by USPS and Delivery Scan by Foreign Post with milestones in between Electronic Manifesting provided by PQW mailer 17 USPS RETHINK SHIPPING ®

18 USPS RETHINK SHIPPING ® 18 USPS RETHINK SHIPPING ®

Scanning and Visibility PMEI and PMI have seen significant positive trends in visibility and Scanning and Visibility PMEI and PMI have seen significant positive trends in visibility and scanning percentages due to agreements with foreign posts We now offer more services that include tracking Or if you just want to know it got there… We offer e. Delcon services for lightweight shipments 19 USPS RETHINK SHIPPING ®

 When we say visibility, we mean end to end. Whether the shipment is When we say visibility, we mean end to end. Whether the shipment is in our hands…. Or our business partners hands. 20 USPS RETHINK SHIPPING ®

Truth behind the discounts Regardless of the discount offered, Other integrators never ship below Truth behind the discounts Regardless of the discount offered, Other integrators never ship below the Net Minimum price and Surcharges are added on after the discounts and based on pre-discounted prices. 21 USPS RETHINK SHIPPING ®

Position in the Market So Let’s Break It Down…. $205. 43 $76. 71 70% Position in the Market So Let’s Break It Down…. $205. 43 $76. 71 70% $61. 62 January 2013 Fuel rate is 10. 0%. Prices used are current 2013 prices $20. 54 $0. 00 $139. 84 22 USPS® RETHINK SHIPPING $76. 71 $1. 25 $23. 04 10. 0% $116. 80 $1. 25 (zone 901 3 lbs) $76. 71 $63. 13 9/week $29, 544.

Example Of USPS Invoice 23 USPS® RETHINK SHIPPING Example Of USPS Invoice 23 USPS® RETHINK SHIPPING

Example Of Carrier Invoice (Continued On Next Page) 24 USPS® RETHINK SHIPPING Example Of Carrier Invoice (Continued On Next Page) 24 USPS® RETHINK SHIPPING

(Continued From Previous Page) Example Of Carrier Invoice 25 USPS® RETHINK SHIPPING (Continued From Previous Page) Example Of Carrier Invoice 25 USPS® RETHINK SHIPPING

Position in the Dimensional Weight Pricing Market Calculated by multiplying the (length x width Position in the Dimensional Weight Pricing Market Calculated by multiplying the (length x width x height) of package in inches and dividing the total by 139 If the DIM weight exceeds the actual weight of the shipment, you are charged the DIM weight price For example: a 3 lb. package to Germany that measures 12 x 12 using Fed. Ex’s Int’l Priority rates costs $101. 69 DIM Weighted the same shipment: 12 x 12 = 1728 / 139 = 12. 43 You would pay the 13 lb rate of $190. 92, an increase of $89. 23 The only USPS service that uses DIM Weights is GXG. All Free GXG packaging is not subject to DIM 26 USPS® RETHINK SHIPPING

What is so difficult about International Shipping? Prohibited items Duties & Taxes Minimum Thresholds What is so difficult about International Shipping? Prohibited items Duties & Taxes Minimum Thresholds Brokers Customs Requirements Wait!!!!! It’s not that difficult! We’ll break it down and make it simple to understand. 27 USPS RETHINK SHIPPING ®

Before We Get To Customs Requirements… Lets help you understand more about country specific Before We Get To Customs Requirements… Lets help you understand more about country specific Prohibitions, Restrictions and Observations. 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 Refer to the International Mail Manual http: //pe. usps. com to find out what items may be prohibited or restricted. 28 USPS RETHINK SHIPPING ®

Duty, Taxes & Fees • A customs duty is a Tariff or Tax on Duty, Taxes & Fees • A customs duty is a Tariff or Tax on the import of goods to protect jobs and industry in that country • Taxes • VAT (Value-Added Tax) or GST (Goods and Service Tax) • Other taxes i. e. PST (Provincial Sales Tax) • Collection Fee from Foreign Post • Duty fees are generally between 12 -20% of the product price. For info on these fees check out www. export. gov • Having proper customs declaration materials on the package make it easier for the Customs Broker to do their job and move the packages through the system. 29 USPS RETHINK SHIPPING ®

 • Under Free Trade Agreements some items may be duty free. 30 USPS • Under Free Trade Agreements some items may be duty free. 30 USPS RETHINK SHIPPING ®

Postal Customs Post Vs. Commercial Customs What are the benefits of post to post? Postal Customs Post Vs. Commercial Customs What are the benefits of post to post? Customers don’t need to have as much of a detailed description of the contents like they do with commercial clearance. Let’s look at an example. Commercial Clearance is much more complicated. For Example: Post to Post: Men’s Shirt Commercial: Men’s flannel shirt, 50/50 cotton polyester blend, made in the USA. GXG is the USPS’s only service that is cleared through commercial customs. 31 USPS RETHINK SHIPPING ®

Online shipping made easy – comparing options Click-N-Ship at usps. com PC Postage Vendors Online shipping made easy – comparing options Click-N-Ship at usps. com PC Postage Vendors (i. e. , endicia. com) Global Shipping Software (GSS) A few per day/week 5, 000+ per year Credit card, checks, and deferred Permit imprint Stealth postage No Yes (permit) Customs forms Yes Yes Customs support (pre-advice) No Depends on Vendor Yes Manifest No Yes Number of packages Payment options 32 USPS RETHINK SHIPPING ®

Find the Right Customs Form https: //www. usps. com/international/customs-forms. htm • Get tips on Find the Right Customs Form https: //www. usps. com/international/customs-forms. htm • Get tips on how to completing customs forms 33 USPS RETHINK SHIPPING ®

New Market Exporter Initiative The President’s National Export Initiative (NEI) in Action “So tonight, New Market Exporter Initiative The President’s National Export Initiative (NEI) in Action “So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. ” President Barack Obama, State of the Union, January 2010 What is the New Market Exporter Initiative? The primary strategic outreach launched in response to the President’s National Export Initiative Offers streamlined solutions for U. S. commercial shippers planning to expand their international sales into additional countries, helping them realize a strategic edge in the global marketplace 34 USPS RETHINK SHIPPING ®

Why the New Market Exporter Initiative Works for U. S. Companies Identify potential markets Why the New Market Exporter Initiative Works for U. S. Companies Identify potential markets for their goods and services outside the U. S. Build and implement a step-by-step market entry strategy including how to do business in different cultures Facilitate financing solutions that increase export profits while reducing risks Navigate export controls and ship globally at the best prices in the market place 35 USPS RETHINK SHIPPING ®

Who Qualifies for the New Market Exporter Initiative? USPS customers and prospects who currently Who Qualifies for the New Market Exporter Initiative? USPS customers and prospects who currently ship internationally may qualify if they fulfill the following three criteria: Export to one or only a few countries Intend to expand to additional countries Products/services are at least 51% domestic origin Qualified customers are invited to register on http: //www. export. gov/usps and will be contacted by a Commercial Service Trade Counselor USPS RETHINK SHIPPING ®

Bottom Line USPS International Products and Services can save time and money Global is Bottom Line USPS International Products and Services can save time and money Global is a growing business & the world is shrinking! We are here to help you succeed! Contact us if you have questions: Global. [email protected] gov 37 USPS RETHINK SHIPPING ®

Holiday Mailing Dates 2016 38 USPS RETHINK SHIPPING ® Holiday Mailing Dates 2016 38 USPS RETHINK SHIPPING ®

Thank you. USPS RETHINK SHIPPING ® Thank you. USPS RETHINK SHIPPING ®