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U.S. Postal Service: Competitive Concerns About Global Package Link Service

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Report Type Reports and Testimonies
Report Date June 5, 1998
Report No. GGD-98-104
Subject
Summary:

The international parcel delivery service operated by the U.S. Postal Service (USPS)--Global Package Link (GPL)--competes with private express firms, which have raised concern that GPL receives preferential treatment from customs in other nations. For example, they contend that GPL parcels are subject to fewer customs clearance requirements. GAO reviewed differences in customs treatment for GPL and private express carrier parcels by customs services in Canada, Japan, and the United Kingdom. GAO found the delivery and customs clearance processes for GPL and private carriers were based primarily on domestic import requirements applicable to mail and parcels imported by private carriers in the three countries. All three countries had separate customs clearance processes and requirements for mail and parcels imported by private carriers. GAO found that there were differences in foreign customs treatment of GPL and private express parcels. These differences were the most pronounced in Japan, where private carriers were subject to requirements regarding the preparation of shipping documentation and the payment of duties and taxes on their parcels that did not apply to GPL parcels. In the United Kingdom, USPS was providing shipping data to the customs service on GPL parcels that was similar to the information that private carriers were required to provide. In Canada, GPL and private express parcels were subject to the same requirements because GPL parcels were being delivered for USPS by a private express carrier there.

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