Consultative Committee - Postal Prosperity Zones (PPZ)

Second round table on the postal prosperity zone initiative in Rabat, Morocco (14 and 15 November 2023) 

1 - What is the postal prosperity zone initiative and what benefits will wider postal sector players enjoy after participating in the pilot project?

 The postal prosperity zone (PPZ) initiative seeks to enable designated operators (DOs) to fully engage with wider postal sector players (WPSPs). Since DOs are tasked with providing countrywide postal delivery services and operating secure offices of exchange (under the supervision of the competent governmental authorities), they benefit from special customs and import procedures. It is worth noting in this connection that services provided in collaboration with DOs may vary from country to country. 

At the heart of the initiative is the seamless flow of cross-border business-to-consumer (B2C) supplies, based on the sharing of harmonized data among all WPSPs involved (all transport modes, including rail and maritime).

 Any private company wishing to participate in the PPZ initiative must be a UPU Consultative Committee (CC) member. There are different membership classes, the details of which can be found on the CC webpage.

2 - What is the planned start date of the pilot? What is the CC’s objective (or expected outcome) for the pilot? Should companies be involved in the entire business process of the chosen pilot model?

The deployment phase of the PPZ initiative will begin during the second half of 2023 and will be spearheaded by Morocco, as major elements of the initiative are ready to be deployed there. The technical and messaging specifications and IT infrastructure are already available, and some of the more recent requirements have been addressed by CC WPSPs, in compliance with UPU treaties and governmental regulations. We expect the initial results of the pilot to be available by the fourth quarter of 2023. 

3 - Given that the commercial volumes of express delivery companies in the Moroccan flow are not particularly high, is there a set entry threshold – or any business volume requirement – for the participation of WPSPs in the pilot project in Morocco?

 Morocco is an emerging market with very strong business relations in the North Africa region. While Morocco hosts the largest free zone in the Mediterranean region (Tanger Med: www.tangermedzones.com/en), the aim of the PPZ initiative is to interconnect fulfilment for B2C supplies (e-commerce) using the worldwide harmonized data that is required for cross-border postal consignments for seamless customs/import clearance, transport security and product safety (and, in the future, for the measurement, reporting and allocation of emissions of CO2 and other greenhouse gases). The Moroccan market is therefore part of the value proposition, and establishing a hub for the North Africa region is a broader objective of the initiative. 

In keeping with the mission of the UPU to facilitate communication between the inhabitants of the world, the CC believes that its members (WPSPs) can help to provide the interconnectivity required for a seamless flow of postal consignments across borders.

4 - For the PPZ pilot project in Morocco, could WPSPs use Morocco as a transfer/transit point to develop activities with neighbouring countries or regions on the basis of bilateral or multilateral agreements, and would the pilot project facilitate this business model for WPSPs?

 WPSPs may take advantage of the PPZ initiative launched by the Moroccan DO in close collaboration with the Moroccan Customs, the aim of which is to establish a regional hub for North Africa. Several other DOs in Africa, Asia, Europe and South America have already written to the UPU Director General and the Chief Operating Officer of the Moroccan Post to express their interest in the PPZ initiative launched by Morocco.

With regard to the increasing harmonization of transport security and product safety information, which depends on the availability of electronic advance data prior to transport, the PPZ initiative may also help to overcome issues related to the harmonized allocation of Harmonized System (HS) six-digit codes, the harmonized digital pre-filing of transport documentation (e.g. under the STOP Act and the European Union’s Import Control System 2 and Electronic Freight Transport Information Regulation), and transhipment, enabling direct injection on the basis of bilateral and multilateral agreements.

5 - In which countries or regions will the pilot project be followed up and duplicated if it is successfully implemented in Morocco?

The CC is currently working to promote participation in all regions. The responsibilities of the UPU include unifying global networks and solutions and harmonizing UPU technical and messaging specifications (including aligning UPU standards with the postal standards applicable to all European postal/express operators under the European Union’s postal legislation and regulations, as well as with standards developed and revised by the International Organization for Standardization). Against that backdrop, the main aim of the PPZ initiative is to facilitate the access of least developed and developing countries to new cross-border e-commerce volumes, as postal volumes have shifted from the UPU global postal network to postal/express operators operating worldwide in the territories of UPU member countries. The PPZ initiative is of critical importance in regions where micro, small and medium-sized enterprises are not interconnected with the digital retail network but where DOs have full access to the global postal IT network (provided, supported and administered by the UPU Postal Technology Centre).

6 - Can postal customs clearance be used to clear consignments under the pilot project? What are the specific connection requirements for the information connection link?

Customs, import duties, transport security and product safety are vital components of the PPZ initiative, as is the management of returns. Based on the outcomes of the fourth Extraordinary Congress held in Riyadh (Saudi Arabia) from 1 to 5 October 2023, we expect issues related to the end-to-end measurement, allocation and reporting of emissions of CO2 and other greenhouse gases to be addressed under the PPZ initiative (although the data required for this will be made available at postal consignment level and will be harmonized globally).

7 - In addition to exports to Morocco, is the model applicable to imports from Morocco?

 Yes. As the PPZ initiative is based on globally harmonized UPU technical and messaging specifications, aligned with other UN agency standards (including regional standards, as the UPU specifications can be mapped to the mandatory pre-shipping data exchange requirements of governmental authorities), it will apply to both the import and the export activities of its participants.

To become a PPZ hub, DOs can express their interest in joining the PPZ initiative on a bilateral level by sending a letter to the UPU Director General and to the Director General of Poste Maroc. More information is available on the dedicated PPZ section of the CC webpage.

For further details, please also contact the CC Secretariat (cc@upu.int) or the CC Secretary, Mr Alexander Thern-Svanberg (alexander.thern-svanberg@upu.int).

Most recent PPZ reports can be found below: