USPS shippers annoyed by added delivery charges in Europe

The Postal Services arrangement with Consignia, in which the British post's subsidiary delivers all USPS air packages throughout Europe. is off to a rocky start.
Businesses using USPS international services to send packages to Europe are complaining that their customers are getting hit with major duties and fees upon delivery of the packages. Many customers are refusing the packages. meaning they never reach their final destination, in addition. customers in Sweden were complaming in late January that they were still w aiting on Christmas packages. Sweden Post officials were worried the packages were hung up somewhere. Perhaps in Germany — the single entry point to Europe under the arrangement with Consignia
The Postal Service and Consignia announced their partnership in early January, touting the single delivers provider as a way to improve efficiency and delivery time (BMR 1/21). Consignia is using its pan-European parcel company. Global Logistic Systems (GLS). to deliver the USPS packages to 24 European countries. USPS air packages are flown to Frankfort. Germany. then routed through GLS central gateway in Neuenstein. Germany. where they go through commercial customs.
So far. the arrangement has caused confusion and delay,
One major catalog company reported that customers in France are being charged $3) and $40 in duties and taxes and other fees upon delivery of the packages Thesc customers were not charged D&T and lees in the past. It raises questions. such as why these problems were not realized during the pilot test of GLS. Further, is a singlesource deliver provider even a good idea? Were other prov iders considered or tested? Perhaps tile old way is better whereby tile postal administration in each country either delivered the USPS air packages to the door or contracted with a local provider.
Bob Michelson, manager of international marketing and business, says some customers that did
not pay those fees in the past are now getting hit with them. Technically, he said. any package worth more than $22 going to a European Union country is subject to taxes, notably the value-added tax (VAT). The VAT charged is generally about 15%-20% of the item’s value. This was true before the switch to GLS as the delivery provider. Some countries were less mindful of tile fees and taxes in the past.
The USPS got complaints about VAT charges in the past as well. Michelson says However, he acknowledges that the pattern is different now Certain countries arc now more regularly charging fees and VAT. T he USPS did test the GLS services, but not in all 24 countries
The situation seems to lend credence to the long-time complaint of the private courier industry that postal administrations get preferential treatment through Customs. USPS’ Michelson. while not agreeing with this assessment. WJ concede that the private couriers will continue to argue this point.
The Postal Sen ice is working to fix the problems It is looking to provide shippers with more options. For example. the USPS will bill the shipper for the taxes and duties. Or. the shipper can send a file to the USPS. something like a mamfcst. and the USPS will charge based on the shipments listed. This way tile charges are a known quantity The delivery company is not collecting money at the customer’s door and tile shipper can build the cost back in to its own shipping and handling charges.
Michelson insists the single-source provider will be better for customers in tile long run. once the USPS and GLS work out tile glitches in tills start-up mode. One provider will provide more efficiency and better deliv ery capability. lie says. A single provider gives the CSPS greater opportunity to reduce processing and handling costs of international packages.
The USPS will he contacting customers soon with the changes and an explanation of VAT and other fees.