BARRIERS

Customs:   Examples of customs practices that impede express delivery services include:

  o

preferential treatment by customs of postal shipments in comparison to shipments

by private express carriers;

  o

absence of a system for pre clearing imports;

  o

limited capability to receive and process data electronically;

  o

absence of a de minimis value level for imports below which customs clearance

procedures would be vastly simplified and expedited;

  o

restrictions on the weight, value and type of commodities that may be shipped

express;

  o

unreasonably high rates (sometimes 100 percent) of inspection;

  o

customs working hours that are not tailored to commercial realities; and

  o

refusal to accept photocopied paperwork for clearance.

Postal:  Many countries use their postal laws to discriminate against express operators.  For

example, Thailand s Postal Act of 1934 permits the Communications Authority of Thailand to

levy a fine on a company providing transportation services for imported letters and documents.

The fines sharply increase the cost of providing express services.

Ground transportation:  Governments often restrict the ability of express operators to provide

door to door service by limiting company s options with respect to ground transportation.  For

example, some countries prohibit express companies from directly operating ground vehicles.

Express operators need the ability to operate on a fully intermodal basis in all markets.

Operational control:  In some countries, express operators are not able to maintain full control

of their operations when shipments arrive.  Instead, they must subcontract to other vendors the

movement of shipments to express operators  facilities.  In addition to increasing costs, this limits

the efficiency and security of express delivery services.  Furthermore, it increases delays and

potential service failures because express shipments do not receive handling priority.

Licensing restrictions:  In some cases, express operators can only contract with agents that have

received a government license to provide express related services.  A government may only

license subsidiaries or affiliates of local express competitors, producing competitive difficulties

for express operators.

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