Letter to Member of Parliament Memorandum To Collector To Director General Department of Post
Letter Sent to : Member of Parliament
Maharashtra Courier Association
2/3 Karve Road, Erandwane, Pune 411004.
________________________________________________________________________
June 12, 2006.
Respected Shri
Sub: Draft Indian Post Office (Amendment) Bill 2006
Dear Sir,
You may be aware that Department of Post (DoP) has recommended an amendment in the Postal Act 1898 and it is likely to be presented in the Parliament in the forthcoming Session.
Maharashtra Courier Association represents all small and medium courier and express companies in Maharashtra. Our members represent the significant employment engaged in the courier and express industries. Courier and express Industry in India
1. employs more than 10 lac people
2. generates more than Rs. 500 crores revenue to the government in the form of Service Tax
3. helps the economy grow faster by satisfying the needs of the industry
4. provides value added services at affordable prices
Highlights of the bill
Monopoly is given to Department of Post to carry letters/documents below 300 grams
One time registration fee of Rupees Ten Lakh in case the area of operation of service provider is within and beyond India or one time registration fee of Rupees Twenty-Five Thousand in case the area of operation is within India.
A renewal fee of Rupees Five Lakh per annum in case the area of operation is within and beyond India; or a renewal fee of Rupees Ten Thousand per annum in case the area of operation is within India.
Any registered service provider with annual turnover of Rupees Twenty-Five Lakh or over shall deposit Ten Percent of his annual turnover with the registering authority for meeting Universal Service Obligation (U.S.O.).
Applicability of the Act to foreign citizens owning a company in India
Mail Regulatory and Development Authority is being set up to regulate the industry
Mail Disputes Settlement Tribunal is being set up to adjudicate disputes between Governments, Registered Service Providers, Group of Consumers etc.
As has been recognized by most major countries in the world, and indeed, by the Indian Post Office itself when it established a separate organization to provide Speed Post services (DoP advertises itself as “Government's Own Courier”), the courier and express industry is a separate and distinct industry from the traditional postal service. Express service providers cater to a different segment than persons seeking merely to communicate by letter. Courier and Express service consumers seek value addition, time certainty and accountability of performance. Our industry provides amongst other things, any or all of the following value additions: proof of delivery, tracking, tracing, packaging, deferred payment, risk management, cash on delivery, customs management, provision of technology solutions, customized transportation solutions, warehousing.
We are concerned that the draft Bill would greatly impact our ability to provide these services. Our major concerns with the proposed draft legislation are:
- Monopoly of Postal Services for carriage of letters and documents up to 300 gms.
- 10 % tax on turnover to service the Universal Service Obligation of India Post.
- Unaffordable one time registration and renewal fees
- Regulatory authority to regulate express & courier operators and tribunal to resolve disputes (MRDA, MDST).
- Representation from Courier and Express industry is not given on any of the bodies (MRDA, MDST).
- Consumers will be deprived of their right to choose a product/service
- The competitiveness in the Indian economy would be adversely affected,
particularly for the export-import trade and the banking system.
- Definition of Person to exclude foreign citizens
A detailed Memorandum is attached herewith addressing the above concerns. We respectfully request this draft not be transmitted to the Parliament until our concerns have been addressed.
After we have submitted this representation, we look forward to your having detailed discussions with MCA delegation on a date and at a place convenient to you.
Thanking You.
Yours Sincerely,
For Maharashtra Courier Association
Yashwant V. Palande
Chairman
Encl.:
1./ Memorandum by Maharashtra Courier Association.
2./ ./ Draft of Indian Post Office (Amendment) Bill 2006 as presented on Website of India Post by the Department of Post
3./ Newspaper Articles covering the the amendments and comments from general public and courier companies