Government of Canada
Symbol of the Government of Canada


Vol. 134, No. 27 — July 1, 2000

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 January 1, 2001, will increase the rates of postage for most United States and international letter-post items.

Proposed rate adjustments include the following, among others:

— a $0.05 increase to $0.60 (9.1 percent) for letters, cards and postcards up to 30 g destined for the United States and up to 20 g destined for Saint Pierre and Miquelon. Other prices for these destinations will also be adjusted, with an average overall increase of 7.1 percent; and

— a $0.10 increase to $1.05 (10.5 percent) for letters, cards and postcards up to 20 g for other foreign destinations. Other prices for these destinations will also be adjusted, with an average overall increase of 9.9 percent.

The Universal Postal Union (UPU) recently approved new terminal dues (inter-administration pricing mechanism for the exchange of international mail) structure to take effect January 1, 2001. It governs all Canada Post's international mail flows except those to the United States. The agreement includes a complex formula for settlement that will cause an estimated increase of 15 percent in the terminal dues charges Canada pays. Consequently, the regulated international rates need to be increased sufficiently to maintain margins.

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 the rate the United States Postal Service charges on basic letters addressed to Canada. According to market research there will be little volume erosion with the proposed increase.

Other Regulatory Changes

Several changes will be made to the International Letter-post Items Regulations to bring greater consistency with recent Universal Postal Union Convention changes:

— removal of the provision for "urgent medicine," prescribing the application of a specific label;

— amendment to allow the use of not only blue but also black "Air Mail" labels;

— replacement of specific weight limits for small packets by a reference to the Universal Postal Convention because those limits, depending on the country of destination, are specified in the Universal Postal Convention; and

— amendment to increase from $300 to $500 the minimum required value for completion of a parcel customs declaration on a letter-post item. This requires a consequential amendment to subsection 9(1) of the Armed Forces Postal Regulations. In these Regulations, a typographical error is also corrected in column II of item 8 of the schedule: "item 4" is replaced by "item 5."

In addition, changes will be instituted to bring greater consistency with existing UPU regulations:

— amend the printed paper definition to be consistent with that of the UPU; and

— remove registered "packets" addressed for delivery to the United States, given that the weight limit of greater than 500 g and up to 30 kg is inconsistent with the UPU limits for a letter-post item.

Other changes will be made to the International Letter-post Items Regulations to bring greater consistency with the domestic product offering. Removal of the ability to include a short conventional greeting within international printed papers will align the product definition with its domestic treatment.

Aerogrammes must be removed as Canada Post ceased to offer that product in January 1999.

Alternatives

All other alternatives were considered inappropriate as the proposed 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. Administrative amendments are essential to ensure alignment with existing and new UPU requirements or with domestic practice.

Benefits and Costs

It is anticipated that the proposed rate changes will not have a serious impact on postal users or market share. The new rates will directly affect 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 2000-2001 Corporate Plan.

It is expected that all the other proposed regulatory amendments will not have any material impact on Canadians and will streamline the Regulations to make them more efficient.

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 Honourable Alfonso Gagliano, Minister of Public Works and Government Services, House of Commons, Centre Block, Room 453-S, Ottawa, Ontario K1A 0A6. All such representations must 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 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, Centre Block, Room 435-S, House of Commons, Ottawa, Ontario K1A 0A6.

CANADA POST CORPORATION

REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS

AMENDMENTS

1. (1) The definitions "chemical reference substance"(see footnote 1), "packet"(see footnote 2) and "urgent medicine"(see footnote 3) in section 2 of the International Letter-post Items Regulations(see footnote 4) are repealed.

(2) The definition "letter-post item"(see footnote 5) in section 2 of the Regulations is replaced by the following:

"letter-post item" means a letter, card, postcard, letter package, printed paper, literature for the blind or small packet; (envoi de la poste aux lettres)

(3) The definition "printed paper"(see footnote 6) in section 2 of the Regulations is replaced by the following:

"printed papers" means reproductions on paper, cardboard or other materials commonly used in printing produced in several identical copies; (imprimés)

2. (1) Subsection 5(3) of the Regulations is repealed.

(2) Subsection 5(5) (see footnote 7) of the Regulations is repealed.

3. (1) Paragraph 7(c) (see footnote 8) of the Regulations is repealed.

(2) Paragraph 7(f) (see footnote 9) of the Regulations is replaced by the following:

(f) for a small packet, as prescribed in the Universal Postal Convention, in force as of January 1, 2001; and

4. (1) The portion of subsection 7.1(2) (see footnote 10) of the Regulations before paragraph (a) is replaced by the following:

(2) Where the value of a letter-post item referred to in subsection (1) exceeds $500 and the item is addressed for delivery to the United States, its territories and possessions, the sender shall

(2) The portion of subsection 7.1(3) (see footnote 11) of the Regulations before paragraph (a) is replaced by the following:

(3) Where the value of a letter-post item referred to in subsection (1) exceeds $500 and the item is addressed for delivery to a country other than the United States, its territories and possessions, the sender shall

5. Section 7.3(see footnote 12) of the Regulations and the heading(see footnote 13) before it are repealed.

6. Section 14 (see footnote 14) of the Regulations and the heading before it are repealed.

7. Section 14.1 (see footnote 15) of the Regulations is replaced by the following:

14.1 All letters, postcards and letter packages shall bear on the address side in the upper left-hand corner, under the sender's name and address, where given, the words "Par avion", or "Par avion" and "Air Mail", in bold capital letters in blue or black, or have affixed thereon a blue or black label bearing the words "Par avion", or "Par avion" and "Air Mail".

8. Paragraph 15(h) of the Regulations is repealed.

9. Paragraph 18(e) of the Regulations is repealed.

10. Subparagraph 20(b)(ii) (see footnote 16) of the Regulations is repealed.

11. Subsection 24(1) (see footnote 17) of the Regulations is replaced by the following:

24. (1) All printed papers intended for transmission by post by air mail shall bear on the address side in the upper left-hand corner, under the sender's name and address, where given, the words "Par avion", or "Par avion" and "Air Mail", in bold capital letters in blue or black, or have affixed thereon a blue or black label bearing the words "Par avion", or "Par avion" and "Air Mail".

12. Subsection 29(1) (see footnote 18) of the Regulations is replaced by the following:

29. (1) Every small packet intended for transmission by post by air mail shall bear on the address side in the upper left-hand corner, under the sender's name and address, where given, the words "Par avion", or "Par avion" and "Air Mail", in bold capital letters in blue or black, or have affixed thereon a blue or black label bearing the words "Par avion", or "Par avion" and "Air Mail".

13. Part V (see footnote 19) of the Regulations is repealed.

14. Schedule IV (see footnote 20) 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, postcards and letter packages  
  (1) Letters, cards and postcards that weigh 500 g or less posted to  
  (a) the United States and its territories and possessions  
 
(i) where the letters, cards or postcards do not exceed 50 g in weight and 245 mm in length, 150 mm in width and 5 mm in thickness
30 g or less 0.60
more than 30 g but not more than 50 g 0.85
 
(ii) where the letters exceed 380 mm in length, 270 mm in width or 20 mm in thickness
250 g or less 4.00
more than 250 g but not more than 500 g 5.35
 
(iii) where the letters, cards or postcards are other than those referred to in subparagraphs (i) and (ii)
100 g or less 1.30
more than 100 g but not more than 200 g 2.45
more than 200 g but not more than 500 g 4.20
  (b) Saint Pierre and Miquelon 20 g or less 0.60
more than 20 g but not more than 100 g 1.10
more than 100 g but not more than 250 g 2.25
more than 250 g but not more than 500 g 4.05
  (c) a foreign destination other than the United States and its territories and possessions and Saint Pierre and Miquelon 20 g or less 1.05
more than 20 g but not more than 50 g 1.60
more than 50 g but not more than 100 g 2.50
more than 100 g but not more than 250 g 5.20
more than 250 g but not more than 500 g 10.20
  (2) Letter packages posted to  
  (a) the United States and its territories and possessions more than 500 g but not more than 1 kg 9.40
  (b) Saint Pierre and Miquelon more than 500 g but not more than 1 kg 7.00
  (c) a foreign destination other than the United States and its territories and possessions and Saint Pierre and Miquelon more than 500 g but not more than 1 kg 20.40
more than 1 kg but not more than 2 kg 34.00
2. Printed papers (surface)  
  (1) Printed papers posted to  
  (a) the United States and its territories and possessions 30 g or less 0.60
more than 30 g but not more than 100 g 1.10
more than 100 g but not more than 200 g 1.60
more than 200 g but not more than 300 g 2.25
more than 300 g but not more than 400 g 3.05
more than 400 g but not more than 500 g 4.05
more than 500 g but not more than 1 kg 7.10
  (b) Saint Pierre and Miquelon 20 g or less 0.60
more than 20 g but not more than 100 g 1.10
more than 100 g but not more than 250 g 2.25
more than 250 g but not more than 500 g 4.05
more than 500 g but not more than 1 kg 7.10
  (c) a foreign destination other than the United States and its territories and possessions and
Saint Pierre and Miquelon
20 g or less .0.65
more than 20 g but not more than 50 g 1.00
more than 50 g but not more than 100 g 1.75
more than 100 g but not more than 250 g 3.25
more than 250 g but not more than 500 g 5.15
more than 500 g but not more than 1 kg 9.10
more than 1 kg but not more than 2 kg 12.95
  (2) M bags containing printed papers posted to  
  (a) the United States and its territories and possessions or Saint Pierre and Miquelon 1 kg or less 7.00
each additional kg or fraction of a kg 2.75
  (b) a foreign destination other than the United States and its territories and possessions and Saint Pierre and Miquelon 1 kg or less 8.25
each additional kg or fraction of a kg 4.40
3. Small packets (surface)  
  (a) posted to the United States and its territories and possessions 250 g or less 2.60
more than 250 g but not more than 500 g 4.05
more than 500 g but not more than 1 kg 7.10
  (b) posted to Saint Pierre and Miquelon 100 g or less 1.10
more than 100 g but not more than 250 g 2.25
more than 250 g but not more than 500 g 4.05
more than 500 g but not more than 1 kg 7.10
  (c) posted to a foreign destination other than the United States and its territories and possessions and Saint Pierre and Miquelon 100 g or less 1.75
more than 100 g but not more than 250 g 3.25
more than 250 g but not more than 500 g 5.15
more than 500 g but not more than 1 kg 9.10
more than 1 kg but not more than 2 kg 12.95
4. Printed papers (air mail)  
  Posted to a foreign destination other than the United States and its territories and possessions and Saint Pierre and Miquelon 20 g or less 0.85
more than 20 g but not more than 50 g 1.30
more than 50 g but not more than 100 g 2.40
more than 100 g but not more than 250 g 4.50
more than 250 g but not more than 500 g 8.75
more than 500 g but not more than 1 kg 17.50
more than 1 kg but not more than 2 kg 29.00
5. Small packets (air mail)  
  (a) posted to the United States and its territories and possessions 250 g or less 4.00
more than 250 g but not more than 500 g 5.35
more than 500 g but not more than 1 kg 9.40
  (b) posted to a foreign destination other than the United States and its territories and possessions and Saint Pierre and Miquelon 100 g or less 2.50
more than 100 g but not more than 250 g 5.20
more than 250 g but not more than 500 g 10.20
more than 500 g but not more than 1 kg 20.40
more than 1 kg but not more than 2 kg 34.00
6. Literature for the blind (air mail)  
  Posted to a foreign destination other than the United States and its territories and possessions 20 g or less 0.85
more than 20 g but not more than 50 g 1.30
more than 50 g but not more than 100 g 2.40
more than 100 g but not more than 250 g 4.50
more than 250 g but not more than 500 g 8.75
more than 500 g but not more than 1 kg 17.50
more than 1 kg but not more than 2 kg 29.00
each additional kg or fraction of a kg 8.50

COMING INTO FORCE

15. These Regulations come into force on January 1, 2001.

[27-1-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 b) 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, Centre Block, Room 435-S, House of Commons, Ottawa, Ontario K1A 0A6.

CANADA POST CORPORATION

REGULATIONS AMENDING THE ARMED FORCES POSTAL REGULATIONS

AMENDMENTS

1. The portion of subsection 9(2)(see footnote 21) of the Armed Forces Postal Regulations(see footnote 22) before paragraph (a) is replaced by the following:

(2) Where the value of an item referred to in subsection (1) exceeds $500, the sender shall

2. The portion of item 8 of the schedule to the Regulations in column II is replaced by the following:



Item
Column II

Rate
8. as set out in item 5 of Schedule IV to the International Letter-post Items Regulations

COMING INTO FORCE

3. These Regulations come into force on January 1, 2001.

[27-1-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

It is proposed to revoke all provisions pertaining to Saint Pierre and Miquelon thereby fully integrating mail services to this destination with the general regulated international rates.

Saint Pierre and Miquelon is an archipelago off the southern coast of the island of Newfoundland, Canada, that has been an overseas department of France since 1976. About 6 500 inhabitants reside on those islands — a population of the same size as that of Asbestos, Quebec. They speak French, possess French citizenship and voting rights, and use French francs as currency units.

Pursuant to the Universal Postal Convention, Canada Post Corporation (Canada Post) pays the same terminal dues charges on mail it sends to Saint Pierre and Miquelon as it does for mail to France. Canada Post has traditionally set postage rates for this mail at a level below the regular international rates, reflecting an earlier time when terminal dues charges were not a material cost consideration. In reality, the cost differential between an item of mail travelling from Canada to Saint Pierre and Miquelon is not significantly different from a letter travelling to any location in France.

This proposed action is consistent with Canada Post's ongoing efforts to reduce the number and complexity of its rates and rate structures to simplify the rating process for employees and customers. This initiative will also reduce certain administrative costs relative to the maintenance of a separate rate structure for so few items.

On January 1, 2001, rules governing amounts of money countries pay to each other for the delivery of their international mail (terminal dues) will change. As a result, Canada Post costs for international mail will rise by about 15 percent, creating an added impetus for eliminating this outdated rate structure.

These proposed amendments will allow Canada Post to bring its margin in respect to this mail flow in line with its margin to other international destinations, including to France.

This simplification will allow Canada Post to streamline its operations by having only three regulated rate structures: one for domestic mail, one for United States mail and one for international mail.

The proposed change represents a structural adjustment of approximately 70 percent in the applicable prices on mail to Saint Pierre and Miquelon.

Rate adjustments include the following, among others:

— a $0.50 increase to $1.05 (90.9 percent) for letters, cards ad postcards up to 20 g; and

— a $0.55 increase to $1.60 (52.3 percent) for letters, cards and postcards up to 50 g.

Consequential amendments are also being made to accommodate the integration of this former separate rate category into the regular international rates and related regulations.

Alternatives

Maintaining the status quo would mean to perpetuate the situation where special reduced international rates would continue to be charged to Saint Pierre and Miquelon even though the cost of service (air transportation and regular international terminal dues) no longer differs significantly compared to the cost of services to other international destinations.

Benefits and Costs

The new rates will directly impact 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 2000-2001 Corporate Plan and will help Canada Post to generate sufficient revenues to cover its operating costs.

Whereas the proposed integration of Saint Pierre and Miquelon's rates with international rates will lead to a significant implicit average rate increase, it will also allow inhabitants of those islands to benefit from additional services that are part of the current international rate structure. Those include air delivery of printed papers and small packets, and delivery of literature for the blind.

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 Honourable Alfonso Gagliano, Minister of Public Works and Government Services House of Commons, Centre Block, Room 435-S, Ottawa, Ontario K1A 0A6. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice.

Anticipated Impact

This change will impact the postage costs of various individuals and Canadian business mailing to the population of Saint Pierre and Miquelon. However, this change is required in the interests of simplification of rate administration and sound financial management.

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, Centre Block, Room 435-S, House of Commons, Ottawa, Ontario K1A 0A6.

CANADA POST CORPORATION

REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS

AMENDMENTS

1. (1) Subparagraph 7(a)(ii)(see footnote 23) of the International Letter-post Items Regulations(see footnote 24) is replaced by the following:

(ii) a printed paper, other than an M bag, that is posted to the United States, its territories and possessions, 1 kg, and

(2) Paragraph 7(b) (see footnote 25) 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, 2 kg;

(3) Subparagraphs 7(d)(i) and (ii) (see footnote 26) of the Regulations are replaced by the following:

(i) posted to the United States, its territories and possessions, 1 kg,
(ii) posted to any country other than the United States, its territories and possessions, 2 kg;

2. (1) Paragraph 1(1)(b) (see footnote 27) of Schedule IV to the Regulations is repealed.

(2) The portion of paragraph 1(1)(c) (see footnote 28) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
1. (1) (c) a foreign destination other than the United States, its territories and possessions

(3) Paragraph 1(2)(b) (see footnote 29) of Schedule IV to the Regulations is repealed.

(4) The portion of paragraph 1(2)(c) (see footnote 30) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
1. (2) (c) a foreign destination other than the United States, its territories and possessions

3. (1) Paragraph 2(1)(b) (see footnote 31) of Schedule IV to the Regulations is repealed.

(2) The portion of paragraph 2(1)(c) (see footnote 32) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
2. (1) (c) a foreign destination other than the United States, its territories and possessions

(3) The portion of subitem 2(2) (see footnote 33) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
2. (2) M bags containing printed papers posted to
(a) the United States, its territories and possessions
(b) a foreign destination other than the United States, its territories and possessions

4. (1) Paragraph 3(b) (see footnote 34) of Schedule IV to the Regulations is repealed.

(2) The portion of paragraph 3(c) (see footnote 35) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
3. (c) posted to a foreign destination other than the United States, its territories and possessions

5. The portion of item 4 (see footnote 36) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
4. Printed papers (air mail)
Posted to a foreign destination other than the United States, its territories and possessions

6. The portion of paragraph 5(b) (see footnote 37) of Schedule IV to the Regulations in column I is replaced by the following:



Item
Column I

Description
5. (b) posted to a foreign destination other than the United States, its territories and possessions

COMING INTO FORCE

7. These Regulations come into force on January 2, 2001.

[27-1-o]

Footnote a

S.C. 1992, c. 1, s. 34

Footnote 1

SOR/90-798

Footnote 2

SOR/91-624

Footnote 3

SOR/86-246

Footnote 4

SOR/83-807

Footnote 5

SOR/96-449

Footnote 6

SOR/90-798

Footnote 7

SOR/91-624

Footnote 8

SOR/85-563

Footnote 9

SOR/94-198

Footnote 10

SOR/87-159

Footnote 11

SOR/87-159

Footnote 12

SOR/90-798

Footnote 13

SOR/90-798

Footnote 14

SOR/90-798

Footnote 15

SOR/91-624

Footnote 16

SOR/98-558

Footnote 17

SOR/88-436

Footnote 18

SOR/86-246

Footnote 19

SOR/88-436

Footnote 20

SOR/98-560

Footnote b

S.C. 1992, c. 1, s. 34

Footnote 21

SOR/90-19

Footnote 22

C.R.C., c. 1274

Footnote c

S.C. 1992, c. 1, s. 34

Footnote 23

SOR/94-211

Footnote 24

SOR/83-807

Footnote 25

SOR/85-563

Footnote 26

SOR/85-563

Footnote 27

SOR/2000-

Footnote 28

SOR/2000-

Footnote 29

SOR/2000-

Footnote 30

SOR/2000-

Footnote 31

SOR/2000-

Footnote 32

SOR/2000-

Footnote 33

SOR/2000-

Footnote 34

SOR/2000-

Footnote 35

SOR/2000-

Footnote 36

SOR/2000-

Footnote 37

SOR/2000-


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