After coming under fire from U.S. lawmakers during a House Oversight and Reform Committee hearing on Tuesday, the nation’s top delivery agency is looking overseas.
A day after being grilled by Democrats over an electric delivery truck deal with Oshkosh Defense, the US Postal Service tapped the Utah-based company Areasa technology company focused on cross-border trade, as the latest contract partner.
The Postal Service will leverage Zonos application programming interfaces to automate the calculation of duty and tax quotes and the classification of HS codes, which are used by customs authorities to identify products and the duties and taxes associated with them. The integration will be applied to the Postal Service’s international shipments to provide overseas customers with greater transparency on the total cost of imports.
Watch: How was USPS Connect received?
“Hundreds of thousands of small and large businesses ship internationally with USPS. We are grateful for the confidence the Postal Service places in Zonos’ cross-border activation capabilities,” said Clint Reid, Founder and CEO of Zonos. “We look forward to helping develop and power USPS’ global technology solutions.”
Although the Postal Service is a US government agency serving approximately 161 million addresses nationwide, it also processes and delivers an incredible number of 46% of global mail. It’s a ground mail, and each piece is subject to different duties and taxes – that’s where Zonos comes in.
Cross-border transactions, which should represent 38% of all sales by 2023, are inherently complex. For any given international order, the consumer must take into account duties, taxes, import fees, shipping costs and more, all of which are automatically calculated by the APIs, applications and plugins of Zones.
Businesses using the platform also have the ability to select one or more carriers they want to work with, and they can even give the customer the option to choose one at checkout.
Read: Lawmakers toast Postal Service over Oshkosh truck purchase
Read: Surprise! 20% of the first order of postal service vehicles is electric
“Companies can’t know all the laws of a country,” Reid Told TechCrunch last September. “Our mission is to create trust in global trade. If you are transparent, you bring trust. This was traditionally thought to be a shipping issue, but it really is a technology issue.
At the time, Zonos had just secured a $69 million Series A funding round led by Silversmith Capital Partners, a venture capital firm that invests in software as a service and information technology. . It was the first institutional funding Reid had received since he founded Zonos in 2009, and the company used it to accelerate product development and launch new offices in Europe and the Asia-Pacific region.
The Postal Service’s deal with Zonos marks the agency’s first partnership with a SaaS company specializing in cross-border trade, but it’s not the first time Postmaster General Louis DeJoy has chosen to work with a security company. software.
The Postal Service has also partnered with Accenture to create a new digital framework for data collection, in addition to agreements with Oracle, Calero Software and others. Zonos is smaller than all of these companies, but nonetheless, it becomes the latest SaaS company to contract with the agency.
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