Extraterritorial Offices of Exchange: Operations, Oversight and Outlook
Posted on April 18th, 2017

Extraterritorial Offices of Exchange (ETOEs) are businesses operated by. or in connection with, foreign postal operators. They perform a wide range of postal functions that can vary by country, but generally include consolidating, documenting, and transporting outbound international mail. A white paper issued by the U.S. Postal Service Office of Inspector General. Extraterritorial Offices of Exchange, explores ETOE operations, their oversight structure, and stakeholder perspectives.
Some stakeholders argue that ETOEs gain an unfair competitive advantages because they can access terminal dues (through their affiliation with national posts) and lower transportation rates, and are relatively free from regulatory oversight, among other benefits. Other stakeholders see a place for ETOEs in a competitive marketplace, but take issue with the terminal dues structure because it mandates lower rates for developing countries and higher rates for developed countries. ETOEs and terminal dues were discussed at the 2016 UPU Congress in Istanbul.
To read the full OIG report, click here.

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