The Foreign Service Journal, October 2020

20 OCTOBER 2020 | THE FOREIGN SERVICE JOURNAL causes during the already stressful PCS process likely leads some to ship their vehicle by default. Under the new stipend system, the general services officer could work with the community liaison office coordinator to provide more systematic data about local vehicle sales. By supporting and incentivizing Foreign Service employees to make informed decisions about buying or ship- ping POVs, it is likely that the number of vehicles shipped between posts or from post to CONUS would decrease substan- tially, while shipments from CONUS to post would probably remain stable. As a result, the supply of duty-free cars on the market at posts would theoretically increase, likely lowering asking prices or at least providing a wider selection. Some of us would still choose to ship a car to post but then sell it there, likely raising the quality of available POVs. In addition, sellers might be more willing to negotiate if they knew their stipend could make up at least some of a shortfall in sales price. Buyers might similarly be willing to increase an offer, knowing that the stipend increases their purchasing power. Purchase at post will mean less awkward time relying on sponsors, new friends and taxis on arrival at a new assignment while waiting for a shipped vehicle to (finally!) catch up with us. Eventually, there will be a treasure trove of shipping and market data from across the globe that could lead to an interesting case study for any of our able economists. Additional Benefits This proposal would also help FS members avoid running afoul of local laws and lesser-known department regulations. For example, some coun- tries have restrictions on the age of POVs that can be imported into the country, but there is usually no corresponding requirement that vehicles be shipped out of country as they reach that threshold. In most cases, POVs could be brought into the country and remain there in the expat market. Similarly, encouraging local buying would protect FS members from subse- quent changes in import requirements or restrictions, such as a recent decree in Ghana assessing an import tax (poten- tially borne by the employee) on POVs with an engine size greater than 2.9 liters. The four-year replacement rule found in 14 FAM 615.4 would still apply, but only to the actual shipment of a POV from the United States. So if you receive the stipend, you would not be permitted to ship a POV at government expense until four years had passed from any prior POV shipment from the United States, but you could receive the stipend for another PCS in the intervening four years. Each Foreign Service member would be able to choose the best approach for their situation, with the stipend serving as an additional incentive to buy and sell locally, thereby increasing the size of the local market. In addition to the convenience and cost savings that would result from this approach, another important benefit of this change would be to limit the global harm caused by sending so many cars on the high seas. The negative environ- mental impact of international shipping is well documented, and the threat to our oceans is only getting worse. The International Maritime Organiza- tion estimates that annual carbon dioxide emissions from shipping were equal to 2.2 percent of all global human-made emissions, and that rate is rising. By reducing the number of POVs shipped, the department would be cutting its carbon footprint and its contribution to ocean pollution. Moreover, lowering our reliance on the international shipping industry will reduce U.S. government participation in a sector that, according to vulnerable populations advocate Caritas Internatio- nalis, “is often characterized by inad- equate salaries, difficult work conditions, violation of human and labor rights, forced labor and trafficking. A large Number of Vehicles Cost per Vehicle Total Overseas Post to Overseas Post 658 $3,816 $ 2,510,928 Overseas Post to CONUS 1,772 $4,507 $ 7,986,404 CONUS to Overseas Post 2,074 $5,252 $10,892,648 Source: Department of State Transportation Management Office Average POV Shipping Costs, 2018 (in U.S. dollars, including ELSO storage charges but not demurrage or other local costs)