83 FR 47791 - Modernizing the Monetary Reimbursement Model for the Delivery of Goods Through the International Postal System and Enhancing the Security and Safety of International Mail

Executive Office of the President

Federal Register Volume 83, Issue 183 (September 20, 2018)

[Federal Register Volume 83, Number 183 (Thursday, September 20, 2018)]
[Presidential Documents]
[Pages 47791-47794]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20667]



[[Page 47789]]

Vol. 83

Thursday,

No. 183

September 20, 2018

Part IV





The President





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Memorandum of August 23, 2018--Modernizing the Monetary Reimbursement 
Model for the Delivery of Goods Through the International Postal System 
and Enhancing the Security and Safety of International Mail



Memorandum of August 31, 2018--Delegation of Authorities Under the 
Reinforcing Education Accountability in Development Act


                        Presidential Documents 



Federal Register / Vol. 83 , No. 183 / Thursday, September 20, 2018 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 47791]]

                Memorandum of August 23, 2018

                
Modernizing the Monetary Reimbursement Model for 
                the Delivery of Goods Through the International Postal 
                System and Enhancing the Security and Safety of 
                International Mail

                Memorandum for the Secretary of State[,] the Secretary 
                of the Treasury[,] the Secretary of Homeland 
                Security[,] the Postmaster General[, and] the Chairman 
                of the Postal Regulatory Commission

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered as follows:

                Section 1. Definitions. (a) ``Good'' means any tangible 
                and movable object that can be conveyed by the 
                international postal system, excluding (i) written, 
                drawn, printed, or digital information recorded on a 
                tangible medium that is not an object of merchandise 
                and (ii) money.

                    (b) ``Non-postal operator'' means a private express 
                carrier, freight forwarder, or other provider of 
                services for the collection, transportation, and 
                delivery of international documents and packages, other 
                than a postal operator.
                    (c) ``Postal operator'' means a governmental or 
                non-governmental entity officially designated by a 
                Universal Postal Union (UPU) member country to operate 
                postal services and to fulfill the related obligations 
                arising out of the Acts of the UPU on its territory.
                    (d) ``Terminal dues'' means the rates or fees 
                determined through the UPU and paid by the postal 
                operator in the country of origin to the postal 
                operator in the country of destination to compensate 
                for costs incurred in the country of destination for 
                processing, transportation, and delivery of 
                international ``letter post'' items, which may include 
                documents or goods and generally weigh up to 4.4 
                pounds.

                Sec. 2. Policy. (a) The UPU was established in 1874 by 
                21 countries. The United States played an integral role 
                in the UPU's creation and, since that time, the United 
                States has actively participated in all phases of the 
                UPU's work. The United States is a party to the current 
                Constitution of the UPU--which was adopted in 1964--and 
                intends to continue to participate fully in and 
                financially contribute to the UPU, as provided in 
                Article 21 of the UPU Constitution. As a member country 
                of the UPU, the United States recognizes the importance 
                of this long-standing organization and is proud of the 
                United States' unbroken record of participation in it.

                    The Congress has provided that the Secretary of 
                State (Secretary), in concluding postal treaties, 
                conventions, or other international agreements, shall, 
                to the maximum extent practicable, take measures to 
                encourage governments of other countries to make 
                available to the United States Postal Service (USPS) 
                and private companies a range of nondiscriminatory 
                customs procedures that will fully meet the needs of 
                all types of American shippers (39 U.S.C. 407(e)(3)).
                    The Congress has likewise directed that responsible 
                officials shall apply the customs laws of the United 
                States and all other laws relating to importation or 
                exportation of goods in the same manner to shipments of 
                goods that are competitive products of the USPS and to 
                similar shipments by private companies (39 U.S.C. 
                407(e)(2)).

[[Page 47792]]

                    It is the policy of the United States to promote 
                and encourage the development of an efficient and 
                competitive global system that provides for fair and 
                nondiscriminatory postal rates.
                    (b) It is in the interest of the United States to:

(i) promote and encourage communications between peoples by efficient 
operation of international postal services and other international delivery 
services for cultural, social, and economic purposes (39 U.S.C. 407(a)(1));

(ii) promote and encourage unrestricted and undistorted competition in the 
provision of international postal services and other international delivery 
services, except where provision of such services by private companies may 
be prohibited by the laws of the United States (39 U.S.C. 407(a)(2));

(iii) promote and encourage a clear distinction between governmental and 
operational responsibilities with respect to the provision of international 
postal services and other international delivery services by the Government 
of the United States and by intergovernmental organizations of which the 
United States is a member (39 U.S.C. 407(a)(3)); and

(iv) participate in multilateral and bilateral agreements with other 
countries to accomplish these objectives (39 U.S.C. 407(a)(4)).

                    (c) Some current international postal practices in 
                the UPU do not align with United States economic and 
                national security interests:

(i) UPU terminal dues, in many cases, are less than comparable domestic 
postage rates. As a result:

  (A) the United States, along with other member countries of the UPU, is 
in many cases not fully reimbursed by the foreign postal operator for the 
cost of delivering foreign-origin letter post items, which can result in 
substantial preferences for foreign mailers relative to domestic mailers;

  (B) the current terminal dues rates undermine the goal of unrestricted 
and undistorted competition in cross-border delivery services because they 
disadvantage non-postal operators seeking to offer competing collection and 
outward transportation services for goods covered by terminal dues in 
foreign markets; and

  (C) the current system of terminal dues distorts the flow of small 
packages around the world by incentivizing the shipping of goods from 
foreign countries that benefit from artificially low reimbursement rates.

(ii) The UPU has not done enough to reorient international mail to achieve 
a clear distinction between documents and goods. Without such a 
distinction, it is difficult to achieve essential pricing reforms or to 
ensure that customs requirements, including provision of electronic customs 
data for goods, are met. Under the current system, foreign postal operators 
do not uniformly furnish advance electronic customs data that are needed to 
enhance targeting and risk management for national security and to 
facilitate importation and customs clearance. My Administration's 
Initiative to Stop Opioids Abuse and Reduce Drug Supply and Demand, 
launched in March of this year, requires accurate advance electronic 
customs data for 90 percent of all international mail shipments that 
contain goods and consignment shipments within 3 years, so that the 
Department of Homeland Security can better detect and flag high-risk 
shipments.

                    (d) It shall be the policy of the executive branch 
                to support efforts that further the policies in this 
                memorandum, including supporting a system of 
                unrestricted and undistorted competition between United 
                States and foreign merchants. Such efforts include:

(i) ensuring that rates charged for delivery of foreign-origin mail 
containing goods do not favor foreign mailers over domestic mailers;

(ii) setting rates charged for delivery of foreign- origin mail in a manner 
that does not favor postal operators over non-postal operators; and

(iii) ensuring the collection of advance electronic customs data.

[[Page 47793]]

                Sec. 3. Relations with the UPU. (a) The United States 
                must seek reforms to the UPU that promote the policies 
                outlined in this memorandum. Such reforms shall provide 
                for:

(i) a system of fair and nondiscriminatory rates for goods that promotes 
unrestricted and undistorted competition; and

(ii) terminal dues rates that:

  (A) fully reimburse the USPS for costs to the same extent as domestic 
rates for comparable services;

  (B) avoid a preference for inbound foreign small packages containing 
goods that favors foreign mailers over domestic mailers; and

  (C) avoid a preference for inbound foreign small packages containing 
goods that favors postal operators over private-sector entities providing 
transportation services.

                    (b) If negotiations at the UPU's September 2018 
                Second Extraordinary Congress in Ethiopia fail to yield 
                reforms that satisfy the criteria set forth in 
                subsection (a) of this section, the United States will 
                consider taking any appropriate actions to ensure that 
                rates for the delivery of inbound foreign packages 
                satisfy those criteria, consistent with applicable law.

                Sec. 4. Actions by the Secretary. (a) The Secretary 
                shall notify the Director General of the UPU of the 
                policies and intentions of the United States described 
                in this memorandum.

                    (b) The Secretary or his designee shall, consistent 
                with 39 U.S.C. 407(b)(1), seek agreement on future 
                Convention texts that comport with the policies of this 
                memorandum in meetings of the UPU, including at the 
                September 2018 Extraordinary Congress.
                    (c) No later than November 1, 2018, the Secretary 
                shall submit to the President a report summarizing the 
                steps being taken to implement this memorandum. If the 
                Secretary determines that sufficient progress on 
                reforms to promote compatibility of the Acts of the UPU 
                with the policy of this memorandum is not being 
                achieved, the Secretary shall include recommendations 
                for future action, including the possibility of 
                adopting self-declared rates.

                Sec. 5. General Provisions. (a) Nothing in this 
                memorandum shall be construed to impair or otherwise 
                affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This memorandum shall be implemented consistent 
                with applicable law and subject to the availability of 
                appropriations.
                    (c) This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by any 
                party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.

[[Page 47794]]

                    (d) The Secretary is authorized and directed to 
                publish this memorandum in the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, August 23, 2018

[FR Doc. 2018-20667
Filed 9-19-18; 11:15 am]
Billing code 4710-10-P