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Does U.S. Postal Service Subsidize China-based Merchants?

DECEMBER 12, 2017 • KERRY MURDOCK

Cross-fringe online business is blasting, as is cross-outskirt shipping. Be that as it may, the postage rates among nations for that delivery significantly differ. Vendors in specific nations, for example, China, can deliver efficiently to U.S. shoppers with rates that are inaccessible to U.S. vendors.

To clarify everything, I as of late talked with Paul Steidler, a senior individual with the Lexington Institute, an open approach think tank in Washington, D.C.

Down to earth Ecommerce: It's occasionally less expensive for a universal merchant to send into the U.S. than it is for a household U.S. vendor to transport the nation over. Why?

Paul Steidler: I accept you're alluding to the ePacket program from China, or, in other words that the U.S. Postal Service initiated in 2010. To comprehend programs like the ePacket and why it's far more affordable to transport products from remote n…
This data is from GAO's 2017 High Risk Report. This report is refreshed at regular intervals, toward the beginning of each new Congress, and as required.The U.S. Postal Service (USPS) faces a genuine monetary circumstance that is putting its main goal of giving brief, dependable, and proficient all inclusive mail administrations at risk.1 It announced a net loss of $5.6 billion in financial year 2016—its tenth continuous year of net misfortunes. Also, it keeps on confronting unfunded liabilities that have developed from 99 percent of USPS incomes in monetary year 2007 to 169 percent of incomes in financial year 2016. These unfunded liabilities—totaling about $121 billion toward the finish of monetary year 2016—comprise for the most part of retiree wellbeing and annuity advantage commitments for which USPS has not put aside adequate assets to cover. For instance, since September 2010, USPS has not made nearly $34 billion in required prefunding retiree wellbeing installments, which …