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Vol. 137, No. 26 — June 28, 2003 Regulations Amending the Letter Mail RegulationsStatutory Authority
Sponsoring Agency
REGULATORY IMPACT ANALYSIS STATEMENT Description Rate Changes These amendments to Canada Post Corporation's (Canada Post) regulations, effective January 12, 2004, will increase the rates of postage for domestic letter items other than the basic domestic letter rate (Lettermail items up to 30 g). Rate increases include the following, among others: — a $0.02 increase to $0.98 (2.1 percent) on the basic domestic oversized letter rate (100 g or less); — a weighted average increase of 3.0 percent for all other domestic letter rate changes. Other Regulatory Changes Non-Coded Lettermail Canada Post also proposes to combine the prices for the two categories of "Non-Coded Lettermail" ("up to 30 g" and "from 30 g up to 50 g") as a first step in the eventual elimination of the Non-Coded Lettermail product, scheduled for the next expected rate action in 2005. At that time, customers would migrate to "Other Lettermail up to 100 g." Currently, the price is $0.62 for Non-Coded Lettermail "up to 30 g" and $0.88 for Non-Coded Lettermail "from 30 g up to 50 g." These amendments propose a common price of $0.80 for both categories of Non-Coded Lettermail effective January 12, 2004. Non-coded Mail was introduced in 1992 to deal exclusively with commercial mail that has been paid by postage meter or postage indicia, but that does not have a postal code, has an incorrect postal code or has the postal code in the wrong location. Since this product's introduction, its volume has declined substantially, as business mailers continue to improve customer addressing. Return to Sender To acquire the necessary flexibility to better meet customer needs, Canada Post proposes to modify the existing Return to Sender process contained in the Undeliverable and Redirected Mail Regulations. The Corporation's ability to decide the manner in which undeliverable items are handled will allow it to address its customers' ongoing requests for electronic data transmission and the secure destruction of mail items as appropriate, as it pertains to Addressed Admail, Incentive Lettermail and Publications Mail. The proposed amendments require consequential, minor amendments to the Undeliverable and Redirected Mail Regulations. Alternatives With regard to the proposed rate action, all other alternatives were considered inappropriate, as the rate action is part of a comprehensive Corporate Plan, which also contains measures to control costs, improve productivity and efficiency, and ensure accessibility and reliability. As regards the other proposed regulatory changes, maintaining the status quo would mean continuing the provision of services that sometimes create confusion for customers and employees, but more importantly, that no longer meet customers' needs. Benefits and Costs It is anticipated that the amendments will not have a serious impact on postal users or on market share. The new rates will directly contribute to Canada Post's financial integrity and, consequently, its ability to make future investments to maintain an accessible, affordable and efficient service. These increases are consistent with the Canada Post's 2003-2007 Corporate Plan. The other regulatory changes will serve to better address Canada Post's commercial customers' evolving needs and reduce their operational costs. Consultation As required by the Canada Post Corporation Act, these amendments are being published in the Canada Gazette, Part I, thereby initiating a formal 60-day period in which interested persons can make representations to the Minister of Transport. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice. Compliance and Enforcement These Regulations are enforced by Canada Post under the Canada Post Corporation Act. No increase in the cost of enforcement is expected as a result of the proposed changes. Contact Fred Schafer, Acting Director, Economic Strategy and Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N1084, Ottawa, Ontario K1A 0B1, (613) 734-9429 (Telephone), (613) 734-8829 (Facsimile). PROPOSED REGULATORY TEXT Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act, that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote a) of that Act, proposes to make the annexed Regulations Amending the Letter Mail Regulations. Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Honourable David M. Collenette, Minister of Transport, East Block, Room 104, House of Commons, Ottawa, Ontario K1A 0A6. CANADA POST CORPORATION REGULATIONS AMENDING THE LETTER MAIL REGULATIONS AMENDMENTS 1. (1) The portion of paragraph 1(1)(b) of the schedule to the Letter Mail Regulations (see footnote 1) in column II is replaced by the following:
(2) The portion of subsection 1(2) of the schedule to the Regulations in column II is replaced by the following:
2. (1) The portion of subsection 2(1) of the schedule to the Regulations in column II is replaced by the following:
2. (2) The portion of subsection 2(3) of the schedule to the Regulations in column II is replaced by the following:
COMING INTO FORCE 3. These Regulations come into force on January 12, 2004. [26-1-o] Regulations Amending the Undeliverable and Redirected Mail RegulationsStatutory Authority Canada Post Corporation Act Sponsoring Agency Canada Post Corporation REGULATORY IMPACT ANALYSIS STATEMENT For the Regulatory Impact Analysis Statement, see Regulations Amending the Letter Mail Regulations.. PROPOSED REGULATORY TEXT Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act, that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote b) of that Act, proposes to make the annexed Regulations Amending the Undeliverable and Redirected Mail Regulations. Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Honourable David M. Collenette, Minister of Transport, East Block, Room 104, House of Commons, Ottawa, Ontario K1A 0A6. CANADA POST CORPORATION REGULATIONS AMENDING THE UNDELIVERABLE AND REDIRECTED MAIL REGULATIONS AMENDMENTS 1. Subsection 9(1) of the Undeliverable and Redirected Mail Regulations (see footnote 2) is replaced by the following: 9. (1) Subject to sections 10, 12, 14 and 18, undeliverable mail shall be returned to the sender or forwarded to the addressee on payment of the applicable fee. 2. Subsection 10(2) of the Regulations is replaced by the following: (2) Where an item of undeliverable mail is incentive lettermail as defined by the Corporation, addressed admail, or advertising or promotional matter addressed to householders, and bears on its cover the return address of a sender in Canada, it shall be handled in a manner that has been established by the Corporation. 3. Subsection 12(2) of the Regulations is replaced by the following: (2) Where an item of undeliverable mail that is opened pursuant to section 11 is incentive lettermail as defined by the Corporation, addressed admail, or advertising or promotional matter addressed to householders, it shall be handled in a manner that has been established by the Corporation. COMING INTO FORCE 4. These Regulations come into force on January 12, 2004. [26-1-o] Regulations Amending the International Letter-post Items RegulationsStatutory Authority
Sponsoring Agency
REGULATORY IMPACT ANALYSIS STATEMENT Description These proposed amendments to Canada Post Corporation's (Canada Post) regulations, effective January 12, 2004, will increase the price of postage for letter-post items destined to the United States and to other international destinations. Proposed price adjustments include the following, among others: — a $0.15 increase to $0.80 (23.1 percent) for letters, cards and postcards up to 30 g destined to the United States. Other prices for these destinations will also be adjusted, with an average overall increase of 15 percent; and — a $0.15 increase to $1.40 (12 percent) for letters, cards and postcards up to 30 g for other foreign destinations. Other prices for these destinations will also be adjusted, with an average overall increase of 12 percent. Canada Post is facing inflationary pressure from a number of sources, and the proposed price adjustments take into consideration increased operating costs as measured by the inflation forecast. One such source is terminal dues, which are a pricing mechanism that allows the postal administration receiving mail for delivery to collect for the cost of delivery from the postal administration sending the mail (in this case Canada Post). It is expected that terminal dues to destinations other than the United States will increase by approximately 4 percent by 2004. Additionally, many courier companies have implemented significant fuel price surcharges based upon price fluctuations. As Canada Post cannot implement a fuel surcharge for regulated letter-post products, it remains exposed to fluctuations in the price of fuel. The proposed amendments require consequential, minor amendments to the Special Services and Fees Regulations and to the Literature for the Blind Regulations. Other Regulatory Changes Registered Consumers who wish to receive proof of mailing have the option of registering their USA and international air letter-post items. Given that the current fee of $9 has remained unchanged since October 1998, Canada Post proposes to increase it by 22 percent from $9 to $11. Advice of Receipt For registered items, consumers may also purchase an Advice of Receipt that provides them with a hard-copy signature as proof of receipt of the item. The fee of $0.95 for this service has remained unchanged since 1999. Previously, the fee had always matched the price of international standard letter-post items weighing up to 30 g. This proposal therefore seeks to increase the fee by 47.4 percent to $1.40. Insurance (USA Registered) Additional coverage for loss or damage (to a maximum of $1000) is currently available for USA registered items, at a price of $1 per $100. However, this optional coverage causes confusion because it is inconsistent with options on international registered items and because it competes directly with Xpresspost-USA, a Canada Post product, which also provides insurance and delivery confirmation. This proposal therefore seeks to remove this option effective January 12, 2004. Literature for the Blind As part of product rationalization, Canada Post will no longer charge a fee for internationally destined items of literature for the blind. This product's volumes are negligible, and this change will align the product with domestic and USA literature for the blind products. In light of the elimination of this fee from the International Letter-post Items Regulations' rate schedule, Canada Post felt it appropriate to further simplify these Regulations by moving the small number of remaining references to literature or materials for the blind to the more appropriate Materials for the Use of the Blind Regulations, which are therefore being updated concurrently. Alternatives Maintaining the status quo would mean perpetuating the situation of overlapping product offerings that create confusion for customers and employees. Providing specifications for USA and international mail that are clear and more consistent with those offered for domestic regulated lettermail will make the mailing experience easier for both consumers and Canada Post employees. Benefits and Costs The proposed amendments are consistent with Canada Post's ongoing efforts to reduce the number and complexity of its price structures and to simplify the pricing process for customers and employees. Specifically, the proposed amendments will allow a consistent price structure to apply to items of same size and weight, regardless of destination. Generally, consumers send only a very small number of USA and international mail items each year compared to domestic lettermail. Having specifications for USA and international mail that are more consistent with those for domestic regulated lettermail will make the process easier to understand for both consumers and retail counter clerks. Furthermore, this initiative will reduce certain administrative costs related to the maintenance of inconsistent price structures and will reduce operating costs for Canada Post. The new prices will contribute to the Corporation's financial integrity directly and, consequently, to its ability to make future investments to maintain an accessible, affordable and efficient service. Anticipated Impact Depending on the products they use, the majority of customers will experience an overall weighted average price increase of 14 percent for USA and international letter-post, while a small number of customers will see significant increases. The phased-in reduction of the number of regulated USA and international price points (from 47 to 23) that Canada Post began instituting a few years ago, along with its resulting reduction in potential customer confusion brought about by these changes, will offset the occasional price adjustments required to achieve standardization. It is also believed that the proposed changes will eliminate confusion existing at retail counters, making it easier for employees and clerks to sell products and, therefore, resulting in better customer service. Consultation As required by the Canada Post Corporation Act, these amendments are being published in the Canada Gazette, Part I, thereby initiating a formal 60-day period in which interested persons can make representations to the Minister of Transport. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice. Compliance and Enforcement These Regulations are enforced by Canada Post under the Canada Post Corporation Act. No increase in the cost of enforcement is expected as a result of the proposed changes. Contact Fred Schafer, Acting Director, Economic Strategy and Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N1084, Ottawa, Ontario K1A 0B1, (613) 734-9429 (Telephone), (613) 734-8829 (Facsimile). PROPOSED REGULATORY TEXT Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act, that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote c) of that Act, proposes to make the annexed Regulations Amending the International Letter-post Items Regulations. Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Honourable David M. Collenette, Minister of Transport, East Block, Room 104, House of Commons, Ottawa, Ontario K1A 0A6. CANADA POST CORPORATION REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS AMENDMENT 1. Item 1 of Schedule IV to the International Letter-post Items Regulations (see footnote 3) is replaced by the following:
COMING INTO FORCE 2. These Regulations come into force on January 12, 2004. [26-1-o] Regulations Amending the International Letter-post Items RegulationsStatutory Authority
Sponsoring Agency
REGULATORY IMPACT ANALYSIS STATEMENT Description These proposed amendments to Canada Post Corporation's (Canada Post) regulations, effective January 12, 2004, represent the final rationalization phase of its Letter-post product offering that began in January 2001. Where possible USA and International "letter" products have been aligned with equivalent domestic offerings, the objective being to standardize the products and specifications for USA and International regulated Letter-post items to those currently offered within domestic regulated Lettermail. Printed Papers Because Printed Papers is not currently offered as part of domestic Lettermail, Canada Post proposes to discontinue the Printed Papers product as part of the rationalization. The first step toward the elimination of this product took place on January 14, 2002. To facilitate the discontinuation of Printed Papers and the volume migration to Letter-post or Small Packets, the weight bands were reduced from six to three in 2002. Additionally, a per-item weight cap of 500 g was established. "M" Bags Printed Paper "M" Bags are bags of Printed Papers destined to one addressee. In keeping with the withdrawal of the Printed Papers offering, Canada Post will also discontinue this product, with volumes migrating to USA and International Distribution Services. Small Packets To further align Small Packets with Canada Post's domestic services, this product will be removed from Regulations and be moved under Distribution Services, thus enabling restructuring of the product and alignment of its options to those of parcel services. The proposed changes will eliminate confusion for customers, will make it easier to sell the product, and will result in better overall customer service. The pricing proposal for Small Packets will appear as part of the January 12, 2004 International and USA Distribution Services Pricing and Product Action. The proposed amendments require consequential, minor amendments to the Special Services and Fees Regulations, the Armed Forces Postal Regulations, and the Materials for the Use of the Blind Regulations. Alternatives Maintaining the status quo would mean perpetuating the situation of product offerings that sometimes create confusion for customers and employees. Providing specifications for USA and International mail that are clear and more consistent with those offered for domestic regulated Lettermail will make the mailing experience easier for both consumers and Canada Post employees. Benefits and Costs The proposed amendments are consistent with Canada Post's ongoing efforts to reduce the complexity of its product offerings and to simplify the USA and international mailing process for customers and employees. Generally, consumers send only a very small number of USA and International mail items each year compared to domestic Lettermail. Having specifications for USA and International mail that are more consistent with those for domestic regulated Lettermail will make the process easier to understand for both consumers and retail counter clerks. This initiative will also reduce certain administrative costs related to the maintenance of inconsistent product structures and will reduce operating costs for Canada Post. The changes will therefore contribute to the Corporation's financial integrity directly and, consequently, to its ability to make future investments to maintain an accessible, affordable and efficient service. Anticipated Impact Depending on the products they use, certain customers may experience some initial product confusion that is not unusual with change. However, to avoid the impact of a radical, one-time product change, Canada Post has phased in changes over a period of a few years and is hereby implementing the final stage of the phased restructure. For example, in December 2001, Canada Post notified its customers of its intention to discontinue the Printed Papers service as part of the next regulated Product and Pricing action to occur after January 14, 2002. It is believed that, overall, the proposed product changes will eliminate confusion existing at retail counters, making it easier for employees and clerks to sell products and, in general, result in better customer service. Consultation As required by the Canada Post Corporation Act, these amendments are being published in the Canada Gazette, Part I, thereby initiating a formal 60-day period in which interested persons can make representations to the Minister of Transport. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice. Compliance and Enforcement These Regulations are enforced by Canada Post under the Canada Post Corporation Act. No increase in the cost of enforcement is expected as a result of the proposed changes. Contact Fred Schafer, Acting Director, Economic Strategy and Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N1084, Ottawa, Ontario K1A 0B1, (613) 734-9429 (Telephone), (613) 734-8829 (Facsimile). PROPOSED REGULATORY TEXT Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act, that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote d) of that Act, proposes to make the annexed Regulations Amending the International Letter-post Items Regulations. Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Honourable David M. Collenette, Minister of Transport, East Block, Room 104, House of Commons, Ottawa, Ontario K1A 0A6. CANADA POST CORPORATION REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS AMENDMENTS 1. (1) The definitions "literature for the blind", "M bag" and "printed papers" in section 2 of the International Letter-post Items Regulations (see footnote 4) are repealed. (2) The definition "letter-post item" in section 2 of the Regulations is replaced by the following: "letter-post item" means a letter, card or postcard; (envoi de la poste aux lettres) 2. Subsections 4(2) to (4) of the Regulations are repealed. 3. Subsection 5(1) of the Regulations is repealed. 4. Sections 7 and 7.01 of the Regulations are replaced by the following: 7. The maximum weight for a letter-post item is 500 g. 5. The portion of subsection 7.1(1) of the Regulations before paragraph (a) is replaced by the following: 7.1 (1) A letter-post item that, by reason of its volume, nature or value, may be subject to customs duty in the country of destination shall have affixed on the address side thereof in the upper left-hand corner, under the sender's name and address, where given, 6. Section 7.2 of the Regulations is repealed. 7. Parts II to IV of the Regulations are repealed. 8. Items 2 to 6 of Schedule IV to the Regulations are repealed. COMING INTO FORCE 9. These Regulations come into force on January 12, 2004. [26-1-o] S.C. 1992, c. 1, s. 34 SOR/88-430; SOR/90-801 S.C. 1992, c. 1, s. 34 C.R.C., c. 1298 S.C. 1992, c. 1, s. 34 SOR/83-807 S.C. 1992, c. 1, s. 34 SOR/83-807 |
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