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Vol. 142, No. 26 — June 28, 2008
Regulations Amending the International Letter-post Items Regulations
Statutory authority
Canada Post Corporation Act
Sponsoring agency
Canada Post Corporation
REGULATORY IMPACT
ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issue and objectives
These proposed amendments to the Canada Post Corporation (Canada Post) Regulations, effective January 12, 2009, will increase the rates of postage for letter-post items destined to the United States and to other international destinations.
Description and rationale
The proposed rate increases are as follows:
|
U.S. Letter-post |
Current Rate |
Proposed Rate |
|---|---|---|
|
Standard 30 g or less |
$0.96 |
$0.98 |
|
More than 30 g but not more than 50 g |
$1.15 |
$1.18 |
|
Oversize 100 g or less |
$1.92 |
$1.96 |
|
Oversize more than 100 g but not more than 200 g |
$3.20 |
$3.40 |
|
Oversize more than 200 g but not more than 500 g |
$6.40 |
$6.80 |
|
International Letter-post |
||
|
Standard 30 g or less |
$1.60 |
$1.65 |
|
Standard more than 30 g but not more than 50 g |
$2.30 |
$2.36 |
|
Oversize 100 g or less |
$3.75 |
$3.90 |
|
Oversize more than 100 g but not more than 200 g |
$6.40 |
$6.80 |
|
Oversize more than 200 g but not more than 500 g |
$12.80 |
$13.60 |
These proposed increases represent a weighted average increase of 3.3%.
Canada Post is facing inflationary pressure from a number of sources. The proposed price adjustments take into consideration increased operating costs, which are expected to be in excess of the Consumer Price Index inflation forecast.
One source of increased costs is increased terminal dues. Terminal dues are a pricing mechanism that allows the postal administration receiving the mail for delivery to collect for the cost of delivery from the postal administration sending the mail (in this case, Canada Post). Terminal dues to the United States increased by 5% in 2007 while terminal dues to other countries increased by 2%. It is expected that some terminal dues will increase by 2.5% in 2008.
Additionally, many transportation 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 and must recover expected increased costs through rate actions.
Even with the proposed price increases, Canada Post’s U.S. and International basic-letter post rates will continue to be among the lowest rates when compared to the rates charged by other major industrialized nations for mail sent to Canada.
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.
Consultation
The Canada Post Corporation Act requires that the proposed regulatory amendments be pre-published in the Canada Gazette, Part I, thereby initiating a formal 60-day period during which interested persons can make representations to the Minister of Transport.
Implementation 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.
Ms. Michelle Gosselin
General Manager
Regulatory Affairs
Canada Post Corporation
2701 Riverside Drive, Suite N0940
Ottawa, Ontario
K1A 0B1
Telephone : 613-734-8207
Fax : 613-734-7207
Email: michelle.gosselin@canadapost.ca
Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act (see footnote a), that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote b) 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 Minister of Transport, House of Commons, Ottawa, Ontario K1A 0A6.
CANADA POST CORPORATION
REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS
AMENDMENTS
1. (1) The portion of subparagraphs 1(a)(i) and (ii) of Schedule IV to the International Letter-post Items Regulations (see footnote 1) in column II is replaced by the following:
|
Item |
Column II |
|---|---|
|
1.(a)(i) |
30 g or less ........................................................ 0.98 |
|
more than 30 g but not more than 50 g.................... 1.18 |
|
|
(ii) |
100 g or less ...................................................... 1.96 |
|
more than 100 g but not more than 200 g ................ 3.40 |
|
|
more than 200 g but not more than 500 g ................ 6.80 |
(2) The portion of subparagraphs 1(b)(i) and (ii) of Schedule IV to the Regulations in column II is replaced by the following:
|
Item |
Column II |
|---|---|
|
1. (b)(i) |
30 g or less ........................................................ 1.65 |
|
more than 30 g but not more than 50 g ................... 2.36 |
|
|
(ii) |
100 g or less ...................................................... 3.90 |
|
more than 100 g but not more than 200 g ................ 6.80 |
|
|
more than 200 g but not more than 500 g ................ 13.60 |
COMING INTO FORCE
2. These Regulations come into force on January 12, 2009.
[26-1-o]
Footnote a
R.S., c. C-10
Footnote b
S.C. 1992, c. 1, s. 34
Footnote 1
SOR/83-807
NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with extensible hypertext markup language (XHTML 1.0 Strict).
