PREPARING FOR (R)EVOLUTION Postal & Delivery Conference 3 May - PowerPoint PPT Presentation

INTERNATIONAL POSTAL FLOWS PREPARING FOR (R)EVOLUTION Postal & Delivery Conference 3 May 2019 Copenhagen C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

A changing postal business landscape C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

From letters to parcels 3 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

Changing postal routes Sweden China 46% Russia Germany 27% China 89% UK 27% US 13% Canada UK Germany 7% US 6% China 61% China 49% US 33% UK 13% Germany 14% Germany USA France China 55% China China 65% China 56% UK 21% Japan 43% UK 16% Germany 28% US 15% US 34% Canada 11% UK 25% HK 26% Mexico India US 65% US 46% China 54% China 36% Japan 12% Australia Australia 23% Brazil China 56% China 73% US 43% USA 41% UK 30% Japan 11% Source : IPC Cross-border e-commerce shopper survey 2018 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret 06/05/2019

The boom of international small packets Volume of international import small packets in France (M) 250 200 150 100 50 0 2014 2015 2016 2017 5 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

Evolution of long-standing balances C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

The repositioning of parcel operators C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret 7 06/05/2019

New logistics actors « Alibaba investira au départ 75 millions d'euros dans son hub logistique liégeois » "Belgiu lgium wins ns battle le for Chines nese e e- commerc merce e giant ants Alibaba baba" 8 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

The UPU terminal dues system Is the “spaghetti bowl” the future? 9 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

E-commerce: the impossible regulatory equation? C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

How to restore the equilibrium?... Alignment of Low tariffs for tariffs on costs consumers Security and Level-playing safety of field for all imported the goods stakeholders Increased revenues for States 11 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

… maximising the benefits of all the stakeholders? Consumers Customs Delivery States companies Tax Remuneration E- sellers/platforms 12 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

Multiplication of new regulations EU : 2021 • ICS2 Russia : 2018 • VAT de minimis removal ITMATT • GDPR USA : 2019 China : 2018 Stop Act Golden Gate Australia : 2018 GST regulation Brasil : 2018 ITMATT + S10 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret 06/05/2019

Still open questions from a postal point of view • Full coherence of the regulations? • Operational feasibility of the new requirements? • A feasible implementing timetable? • Does a uniform regulatory framework for all delivery operators really create a level-playing field? 14 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

Posts are transforming themselves … • Definition of a global postal model for EAD • UPU capacity-building programmes for embarking the whole postal community (Securex , ORE…) • UPU Global data-sharing agreement • UPU cooperation with international organisations (WCO, ICAO, IATA, EU) to define global standards and appropriate regulations • Massive investments in IT systems and operational capabilities • Increasing data exchanges 15 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

… To deal with new challenges • Creating new balances for the remuneration system • Price increase vs preservation of volumes – « not to die healed »... • Uncertainty on the impact of the new regulations on users ’ behaviors • Will this put an end to massive Chinese imports? • Reinventing the small packet business model • Was based on low tariffs, untracked, simplified customs procedures 16 Titre de la présentation 06/05/2019 C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret

Merci Questions? Christelle Defaye-Geneste Head of Customs and European Affairs Tel. : +33 (0)6 71 70 37 32 christelle.geneste@laposte.fr C0 - Public / C1 - Interne / C2 - Restreint / C3 - Confidentiel / C4 - Secret