Vol. 142, No. 19 — September 17, 2008

Registration

SOR/2008-283 September 5, 2008

CANADA POST CORPORATION ACT

Regulations Amending the International Letter-post Items Regulations

P.C. 2008-1682 September 5, 2008

Whereas, pursuant to subsection 20(1) of the Canada Post Corporation Act (see footnote a), a copy of the proposed Regulations Amending the International Letter-Post Items Regulations, in the annexed form, was published in the Canada Gazette, Part I, on June 28, 2008 and a reasonable opportunity was afforded to interested persons to make representations to the Minister of Transport with respect to the proposed Regulations;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to subsection 19(1) (see footnote b) of the Canada Post Corporation Act, hereby approves the annexed Regulations Amending the International Letter-post Items Regulations, made on August 28, 2008 by the 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 Rate per Item ($)
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 Rate per Item ($)
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.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and o bjectives

These 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 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 increases represent a weighted average increase of 3.3%.

Canada Post is facing inflationary pressure from a number of sources. The 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 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

As required by the Canada Post Corporation Act, these amendments were pre-published in the Canada Gazette, Part I, on June 28, 2008, thereby initiating a formal 60-day period during which interested persons could make representations to the Minister of Transport, Infrastructure and Communities. During the consultation period, no substantive comments were received.

Implementation, enforcement and service standards

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 changes.

Contact

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

Footnote a
R.S., c. C-10

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

Footnote 1
SOR/83-807

NOTICE:
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