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Vol. 135, No. 26 — June 30, 2001
Regulations Amending the Letter Mail Regulations
Statutory Authority
Canada Post Corporation Act
Sponsoring Agency
Canada Post Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
Description
Canada Post Corporation (Canada Post) proposes to amend the price-cap formula so that increases to the domestic basic letter rate, if any, shall go into effect the second Monday after January 3 of each year.
Price-cap permitted rate changes currently occur on January 1, which means that Canada Post employees must modify merchandising and customers must acquire new postage and adjust to new rates, all during the busy Christmas season.
The current proposal ensures that implementation for administrative convenience will always be on a Monday and that there will be a minimum period of two weeks in January for implementation activities.
Historically, an increase in the domestic basic letter rate brings about increases to all other regulated and incentive rates, domestic and international. Past experience in setting rates for commercial customers has demonstrated preference for rate changes at the beginning of the work week. Commercial customers generally do not have staff working over the weekend and would prefer to implement rate changes on a Monday rather than in mid-week.
Alternatives
Maintaining the status quo would mean no improvement in customer service and efficiency for Canada Post.
Benefits and Costs
It is anticipated that the proposal will provide a better timing for rate increases to consumers. It will also benefit commercial mailers who have indicated that moving the date back by two weeks would greatly facilitate their ability to implement the changes into their systems following the busy Christmas period. The change will also significantly reduce the burden of implementation on Canada Post systems during the Christmas period.
Given that the regulated product and rate changes proposed for 2002 would take effect two weeks later than expected, the proposed amendment to the price-cap formula will however have a negative impact on Canada Post revenue. It will have a similar impact on subsequent regulated rate changes.
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 Public Works and Government Services. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice.
Contact
William R. Price, Director, Economic Strategy and Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N1080, Ottawa, Ontario K1A 0B1, (613) 734-6739 (Telephone), (613) 734-7207 (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 Alfonso Gagliano, Minister of Public Works and Government Services, Room 435-S, Centre Block, House of Commons, Ottawa, Ontario K1A 0A6.
CANADA POST CORPORATION
REGULATIONS AMENDING THE LETTER MAIL REGULATIONS
AMENDMENT
1. Subsection 3(4) (see footnote 1) of the Letter Mail Regulations (see footnote 2) is replaced by the following:
(4) Increases to the domestic basic letter rate, if any, shall go into effect the second Monday after January 3 of each year.
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
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Regulations Amending the Letter Mail Regulations
Statutory Authority
Canada Post Corporation Act
Sponsoring Agency
Canada Post Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
Description
These amendments to Canada Post Corporation's (Canada Post) regulations, effective January 14, 2002, will increase the rates of postage for domestic letter rates other than the basic domestic letter rate and standard business letter rate up to 30 g.
Rate increases include the following among others:
— a $0.02 increase to $0.96 (2.1 percent) on the basic domestic oversized letter rate (100 g or less);
— a weighted average increase of 2.7 percent for all other domestic letter rate changes.
Alternatives
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.
Benefits and Costs
It is anticipated that the rate changes will not have a serious impact on postal users or 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 Canada Post's 2001-2005 Corporate Plan.
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 Public Works and Government Services. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice.
Contact
William R. Price, Director, Economic Strategy and Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N1080, Ottawa, Ontario K1A 0B1, (613) 734-6739 (Telephone), (613) 734-7207 (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 b) 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 Alfonso Gagliano, Minister of Public Works and Government Services, Room 435-S, Centre Block, 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 3) in column II (see footnote 4) is replaced by the following:
| Item | Column II Rate |
|---|---|
| 1. (1)(b) | $0.77 |
(2) The portion of subitem 1(2) of the schedule to the Regulations in column II (see footnote 5) is replaced by the following:
| Item | Column II Rate |
|---|---|
| 1. (2)(a) (b) |
$0.62 $0.88 |
2. The portion of item 2 of the schedule to the Regulations in column II (see footnote 6) is replaced by the following:
| Item | Column II Rate |
|---|---|
| 2. (1) (2) (3) |
$0.96 $1.60 $2.10 |
COMING INTO FORCE
3. These Regulations come into force on January 14, 2002.
[26-1-o]
Regulations Amending the International Letter-post Items Regulations
Statutory Authority
Canada Post Corporation Act
Sponsoring Agency
Canada Post Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
Description
These proposed amendments to Canada Post Corporation's (Canada Post) regulations, effective 14 January 2002, will increase the rates of postage for letter-post items destined to the United States and to other international destinations.
Proposed rate adjustments include the following, among others:
— a $0.05 increase to $0.65 (8.3 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 6.8 percent; and
— a $0.20 increase to $1.25 (19 percent) for letters, cards and postcards up to 20 g for other foreign destinations. The 20 g weight step has been increased to include letters, cards and postcards weighing up to 30 g, therefore, the $1.25 rate reflects the added value of sending items of 30 g or less. Other prices for these destinations will also be adjusted, with an average overall increase of 11.3 percent.
While prices did increase on January 1, 2001, inflation is not the only factor involved in setting prices to the United States and other international destinations. Over half the cost of International mail and almost three-quarters of the cost of United States mail comes from terminal dues. These 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). A new methodology for setting these prices takes effect in 2001 and will add an estimated 15 percent to Canada Post payments of terminal dues to countries other than the United States. In addition, the renewal of a separate terminal dues agreement between Canada Post and the United States Postal Service (USPS) is also expected to result in a cost increase.
Even with the proposed increases, Canada Post's proposed basic letter rate to the United States will still remain significantly less than the rate on letters for other international destinations and also the rate the United States Postal Service charges on a basic letter addressed to Canada. Canada's proposed basic letter rate for mail destined to other countries than the United States also compares favorably to the equivalent basic letter rate of other postal administrations letters destined to Canada.
Other Regulatory Changes
Several changes are also proposed to the International Letter-post Items Regulations to establish a consistent rate structure for items of the same size and weight, regardless of destination.
For letters, cards and postcards, Canada Post proposes the following changes:
— to align weight steps with those established for regulated domestic letter mail. Weight steps will be the same for domestic, USA and international letters; that is, "30 g or less" and "more than 30 g but not more than 50 g" for standard items and "100 g or less", "more than 100 g but not more than 200 g" and "more than 200 g but not more than 500 g" for oversized items;
— to align size specifications with those established for regulated domestic letter mail, that means one set of rates for items not exceeding 245 mm in length, 150 mm in width and 5 mm in thickness and one set of rates for items exceeding those measures but not exceeding 380 mm in length, 70 mm in width and 20 mm in thickness;
— to discontinue the current service for letters posted to the United States exceeding 380 mm in length, 270 mm in width or 20 mm in thickness. Those items will now be considered small packets; and
— to discontinue the "Letter Package" service. As of January 14, 2002, any letter package will be considered a small packet. Letter packages are items that have the characteristics of a letter but weighing over 500 g but no more than 1 kg to the United States and no more than 2 kg to other countries (ex. telephone book).
For Printed Papers, Canada Post proposes to reduce the weight steps from six to three and migrate products weighing over 500 g to the Small Packets category. The intention is to discontinue the Printed Paper service as of the next rate action (which will not occur in 2002) and replace it by the Small Packets service. The current proposal is the first step in that direction. The proposed weight steps will be consistent with the first three weight steps of Small Packets posted to a foreign destination other than the United States.
The proposed action is consistent with Canada Post's ongoing efforts to reduce the number and complexity of its rates and rate structures so as to simplify the rating process for employees and customers. This initiative will also reduce certain administrative costs relative to the maintenance of inconsistent rate structures.
The proposed amendments require consequential amendments to items 5 and 7 of the schedule to the Armed Forces Postal Regulations and the revocation of paragraph 6(1)(e) of the Special Services and Fees Regulations referring to letter packages.
Alternatives
Maintaining the status quo would mean to perpetuate the situation where there is an overlap of product offerings that create confusion for customers and employees. Having specifications for USA and International mail that are more consistent with those offered for domestic regulated Lettermail, would make the mailing process easier for both consumers and Canada Post employees.
Benefits and Costs
With the proposed amendments, a consistent rate structure would apply to items of same size and weight, regardless of destination. When compared to domestic Lettermail, most consumers send a small proportion of USA and International mail each year. Having specifications for USA and International mail that are more consistent with those offered for domestic regulated Lettermail would make the process easier for both consumers and retail counter clerks.
"Letter packages," "Printed Papers" and "Small Packets" share similar attributes with each other and with parcels. The proposal to discontinue Letter Packages as of January 14, 2002, and to amalgamate Printed Papers and Small Packets as of the next rate action (after 2002) will streamline service offerings that are confusing for both Canada Post's customers and retail staff.
Customers currently mailing Letter Packages or letters exceeding 380 mm in length, 270 mm in width or 20 mm in thickness will benefit from the same level of service as Small Packets and will not experience any significant cost increase as a result of the transition.
Overall proposed product changes will eliminate confusion, make it easier to sell products, and result in better customer service. They will also reduce operating costs for Canada Post and improve service performance.
Depending upon the products used, the majority of customers will experience a weighted average rate increase of 9.82 percent for USA and International Letter-post. A small number of customers will see significant increases, but to offset these increases, Canada Post is using a phased approach to the restructuring, postponing the complete elimination of the "Printed Papers" until the next rate action (which will occur after January 2002). Moreover, some customers will actually see a decline in prices as a result of the restructuring depending on the service and weight steps used.
The new rates will directly contribute to Canada Post Corporation'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 2001-2005 Corporate Plan and will help Canada Post to generate sufficient revenues to cover its operating costs and achieve its approved net income goals.
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 Public Work and Government Services. 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 the Canada Post Corporation under the Canada Post Corporation Act. No increase in the cost of enforcement is expected given that compliance with the proposed amendments will be ensured through the mechanisms currently in place.
Contact
William R. Price, Director, Economic Strategy and Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N1080, Ottawa, Ontario K1A 0B1, (613) 734-6739 (Telephone), (613) 734-7207 (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 Alfonso Gagliano, Minister of Public Works and Government Services, Room 435-S, Centre Block, House of Commons, Ottawa, Ontario K1A 0A6.
CANADA POST CORPORATION
REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS
AMENDMENTS
1. (1) The definition "letter package" (see footnote 7) in section 2 of the International Letter-post Items Regulations (see footnote 8) is repealed.
(2) The definition "letter-post item" (see footnote 9) in section 2 of the Regulations is replaced by the following:
"letter-post item" means a letter, card, postcard, printed paper, literature for the blind or small packet; (envoi de la poste aux lettres)
2. Subsection 5(1) (see footnote 10) of the Regulations is replaced by the following:
5. (1) The combined length, width and depth of any printed paper, small packet or literature for the blind shall not exceed 90 cm and the greatest dimension thereof shall not exceed 60 cm. A letter shall not exceed 380 mm in length, 270 mm in width and 20 mm in thickness.
3. (1) Paragraph 7(a) of the Regulations is amended by adding the word "and" at the end of subparagraph (i) and by replacing subparagraphs (ii) (see footnote 11) and (iii) (see footnote 12) with the following:
(ii) a printed paper, other than an M bag, 500 g;
(2) Paragraph 7(b) (see footnote 13) of the Regulations is replaced by the following:
(b) for printed paper intended for transmission by air mail and posted to a country other than the United States, its territories and possessions, 500 g;
(3) Paragraph 7(d) (see footnote 14) of the Regulations is repealed.
4. Section 14.1 (see footnote 15) of the Regulations is replaced by the following:
14.1 All letters and postcards shall bear on the address side in the upper left-hand corner, under the sender's name and address, where given, the words "Air Mail" and "Par avion", in bold capital letters in blue or black, or have affixed thereon a blue or black label bearing the words "Air Mail" and "Par avion".
5. Paragraph 16(3)(a) (see footnote 16) of the Regulations is replaced by the following:
(a) the package does not exceed 2 kg in weight or the limit prescribed in the Universal Postal Convention, in force as of January 1, 2001, whichever is the lesser;
6. Paragraph 26(a) (see footnote 17) of the Regulations is replaced by the following:
(a) the package does not exceed 2 kg in weight or the limit prescribed in the Universal Postal Convention, in force as of January 1, 2001, whichever is the lesser;
7. Schedule IV (see footnote 18) to the Regulations is replaced by the following:
SCHEDULE IV
(Section 4)
RATES OF POSTAGE — LETTER-POST ITEMS
| Item | Column I Description |
Column II Rate per Item ($) |
|---|---|---|
| 1. | Letters, cards and postcards | |
| (a) posted to the United States, its territories and possessions |
||
|
(i) where the letters, cards or postcards do not exceed 245 mm in length, 150 mm in width and 5 mm in thickness |
30 g or less-0.65 | |
| more than 30 g but not more than 50 g-0.90 | ||
|
100 g or less-1.40 | |
| more than 100 g but not more than 200 g-2.60 | ||
| more than 200 g but not more than 500 g-4.60 | ||
| (b) posted to a foreign destination other than the United States, its territories and possessions | ||
|
(i) where the letters, cards or postcards do not exceed 245 mm in length, 150 mm in width and 5 mm in thickness |
30 g or less-1.25 | |
| more than 30 g but not more than 50 g-1.75 | ||
| 100 g or less-3.00 | ||
|
(ii) where letters referred to in subparagraph (i) exceed 50 g or where letters exceed 245 mm in length, 150 mm in width or 5 mm in thickness but do not exceed 380 mm in length, 270 mm in width and 20 mm in thickness |
more than 100 g but not more than 200 g-5.20 | |
| more than 200 g but not more than 500 g-10.00 | ||
| 2. | Printed papers (surface) | |
| (1) Printed papers posted to |
||
| (a) the United States, its territories and possessions | 100 g or less-1.50 | |
| more than 100 g but not more than 250 g-2.50 | ||
| more than 250 g but not more than 500 g-4.25 | ||
| (b) a foreign destination other than the United
States, its territories and possessions |
100 g or less-1.75 | |
| more than 100 g but not more than 250 g-3.50 | ||
| more than 250 g but not more than 500 g-5.40 | ||
| (2) M bags containing printed papers posted to |
||
| (a) the United States, its territories and
possessions |
1 kg or less-8.00 | |
| each additional kg or fraction of a kg-2.85 | ||
| (b) a foreign destination other
than the United States, its territories and possessions |
1 kg or less-9.50 | |
| each additional kg or fraction of a kg-4.60 | ||
| 3. | Small packets (surface) | |
| (a) posted to the United States, its territories and possessions |
250 g or less-2.80 | |
| more than 250 g but not more than 500 g-4.25 | ||
| more than 500 g but not more than 1 kg-7.40 | ||
| (b) posted to a foreign destination other than the United States, its territories and possessions | 100 g or less-2.65 | |
| more than 100 g but not more than 250 g-3.55 | ||
| more than 250 g but not more than 500 g-5.40 | ||
| more than 500 g but not more than 1 kg-9.50 | ||
| more than 1 kg but not more than 2 kg-13.55 | ||
| 4. | Printed papers (air mail) Posted to a foreign destination other than the United States, its territories and possessions |
100 g or less-2.40 |
| more than 100 g but not more than 250 g-5.40 | ||
| more than 250 g but not more than 500 g-10.65 | ||
| 5. | Small packets (air mail) | |
| (a) posted to the United States, its territories
and possessions |
250 g or less-4.25 | |
| more than 250 g but not more than 500 g-5.60 | ||
| more than 500 g but not more than 1 kg-9.90 | ||
| (b) posted to a foreign destination other than the United States, its territories and possessions | 100 g or less-4.00 | |
| more than 100 g but not more than 250 g-5.45 | ||
| more than 250 g but not more than 500 g-10.65 | ||
| more than 500 g but not more than 1 kg-21.30 | ||
| more than 1 kg but not more than 2 kg-35.55 | ||
| 6. | Literature for the blind (air mail) Posted to a foreign destination other than the United States, its territories and possessions |
30 g or less-1.00 |
| more than 30 g but not more than 50 g-1.35 | ||
| more than 50 g but not more than 100 g-2.50 | ||
| more than 100 g but not more than 250 g-4.70 | ||
| more than 250 g but not more than 500 g-9.15 | ||
| more than 500 g but not more than 1 kg-18.30 | ||
| more than 1 kg but not more than 2 kg-30.30 | ||
| each additional kg or fraction of a kg-8.90 |
COMING INTO FORCE
8. These Regulations come into force on January 14, 2002.
[26-1-o]
Regulations Amending the Armed Forces Postal Regulations
Statutory Authority
Canada Post Corporation Act
Sponsoring Agency
Canada Post Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Regulations Amending the International Letter-post Items 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 d) of that Act, proposes to make the annexed Regulations Amending the Armed Forces Postal 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 Alfonso Gagliano, Minister of Public Works and Government Services, Room 435-S, Centre Block, House of Commons, Ottawa, Ontario K1A 0A6.
CANADA POST CORPORATION
REGULATIONS AMENDING THE ARMED FORCES POSTAL REGULATIONS
AMENDMENTS
1. Item 5 (see footnote 19) of the schedule to the Armed Forces Postal Regulations (see footnote 20) is replaced by the following:
| Item | Column I Description |
Column II Rate |
|---|---|---|
| 5. | Letters, air transmission, 500 g or less |
as set out in paragraph 1(b) of Schedule IV to the International Letter-post Items Regulations |
2. The portion of item 7 of the schedule to the Regulations in column I (see footnote 21) is replaced by the following:
| Item | Column I Description |
|---|---|
| 7. | Printed papers, air transmission, 500 g or less |
COMING INTO FORCE
3. These Regulations come into force on January 14, 2002.
[26-1-o]
Regulations Amending the Special Services and Fees Regulations
Statutory Authority
Canada Post Corporation Act
Sponsoring Agency
Canada Post Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
For the Regulatory Impact Analysis Statement, see the Regulations Amending the International Letter-post Items 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 e) of that Act, proposes to make the annexed Regulations Amending the Special Services and Fees 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 Alfonso Gagliano, Minister of Public Works and Government Services, Room 435-S, Centre Block, House of Commons, Ottawa, Ontario K1A 0A6.
CANADA POST CORPORATION
REGULATIONS AMENDING THE SPECIAL SERVICES AND FEES REGULATIONS
AMENDMENT
1. Subsection 6(1) (see footnote 22) of the Special Services and Fees Regulations (see footnote 23) is amended by adding the word "and" at the end of paragraph (d) and by repealing paragraph (e).
COMING INTO FORCE
2. These Regulations come into force on January 14, 2002.
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S.C. 1992, c. 1, s. 34
SOR/2000-221
SOR/88-430; SOR/90-801
S.C. 1992, c. 1, s. 34
SOR/88-430; SOR/90-801
SOR/2000-377
SOR/2000-377
SOR/2000-377
S.C. 1992, c. 1, s. 34
SOR/91-624
SOR/83-807
SOR/2000-378
SOR/85-563
SOR/2000-380
SOR/94-211
SOR/2000-380
SOR/2000-380
SOR/2000-378
SOR/90-798
SOR/90-798
SOR/2000-378
S.C. 1992, c. 1, s. 34
SOR/90-802
C.R.C., c. 1274
SOR/90-802
S.C. 1992, c. 1, s. 34
SOR/2000-199
C.R.C. , c. 1296
NOTICE:
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