D UNIVERSAL
Q. POSTAL
D UNION
UPU International Bureau To: The designated operators of Union
Weltpoststrasse member countries
3015 BERNE
SWITZERLAND
T+41 31 35031 11
F+41 313503110
www.upu.int
Contact: Mr Philippe Grondein
T +41 31 3503537 Berne, 27 September 2022
[email protected]
Reference: 0426(DPRM.PPRE.RIC)1096
Subject: Updating of the UPU Transit Compendium for 2023 — Items in transit å döcouvert and missent
items
Dear Sir/Madam,
According to article 27-110 of the Convention Regulations, amendments to transit charges for 2023 are to be
notified to the International Bureau for the updating of sections IV and V of the Transit Compendium relating
to charges for items in transit dcouvert. These charges consist of a handling rate, a transport rate and a
terminal dues (TD) increment.
According to article 27-106.1.2 of the Convention Regulations, transit charges for each group of countries shaH
correspond to the weighted average of the transit charges payable to the different destinations within the group.
Handling and transportation charges for items forwarded in transit ä dcouvert
With reference to article 27-106.1.3 of the Convention Regulations, the processing of items forwarded in transit
ä dcouvert involves consideration of handling and transportation charges. The charge for the handling of
items forwarded in transit dcouvert shall be 1.081 SDR per kilogramme for 2023. Charges corresponding
to the transport of items in transit ä dcouvert forwarded by surface shall be calculated on the basis of the
distance charges indicated in article 27-103.1.2.2 of the Convention Regulations. Charges for the transport of
items in transit ä dcouvert forwarded by air shall be calculated on the basis of the charges indicated in arti
cle 34-101.3 of the Convention Regulations.
TD increments
According to article 27-106.1.3.3.1 of the Convention Regulations, terminal dues increments shall be calcu
lated on the basis of weighted average differences between the terminal dues received by the designated
operator (DC) of transit and those paid to the DC of destination. TD increments can be applied in addition to
the handling and transportation costs. The transit charges shall be fixed by groups of countries of destination
(hereinafter referred to as “transit groups”). The number of transit groups shall not be greater than 10. The
weighting shall be based on the most recent annual letter-post volumes sent by the intermediate DC to the
countries of destination within the respective group (article 27-106.1.2.1 of the Convention Regulations).
MAJANDUS.. JA
01. 10. 2022
D UNIVERSAL Annex 1 to letterO426(DPRM.PPRE.RIC)1096
. POSTAL of 27 September 2022
DIUNION
Guidelines for the notification of terminal dues increments in accordance with articles 27-106 and
27-110 of the Convention Regulations
1. Introduction
According to article 27-106.1.2 of the Convention Regulations, transit charges for each group of countries shall
correspond to the weighted average of the transitcharges payable to the different destinations within the group.
Handling and transportation charges for items forwarded in transit ä dcouvert
With reference to article 27-106.1.3 of the Convention Regulations, the processing of items forwarded in transit
dcouvert involves consideration of handling and transportation charges. The charge for the handling of
items forwarded in transit dcouvert shall be 1.081 SDR per kilogramme for 2023. Charges corresponding
to the transport of items in transit ä dcouvert forwarded by surface shall be calculated on the basis of the
distance charges indicated in article 27-103.1.2.2 of the Convention Regulations. Charges for the transport of
items in transit ä dcouvert forwarded by air shall be calculated on the basis of the charges indicated in arti
ole 34-101.3 of the Convention Regulations.
TD increments
According to article 27-106.1.3.3.1 of the Convention Regulations, terminal dues increments are calculated on
the basis of weighted average differences between the terminal dues received by the transit designated oper
ator (DO) and those paid to the destination DO. According to the Convention Regulations, the notification of
terminal dues increments must accurately reflect the different terminal dues rates applicable to the different
flows and the various provisions of the terminal dues remuneration systems.
For the notification ofterminal dues increments for 2023, the calculation wiIl be based on the weighted average
difference between terminal dues received and paid for each transit group to ensure a better level of compli
ance with the provisions of article 27-106 of the Convention Regulations. The weighting shall be based on the
most recent annual Ietter-post volumes sent by the intermediate DO to the countries of destination within the
respective group.
II. Model
The Excel model allows transit DOs to calculate the weighted average transit charges (handling, transportation
and TD increments) and weighted average differences between terminal dues received and paid according to
each transit group. For reasons of simplicity, the model distinguishes between mail flows received from i) target
system countries and ii) transition system countries. This corresponds to the current structure of the Transit
Compendium. Accordingly, it is assumed that the intermediary Dl receives the lowest terminal dues remuner
ation for each of these two groups. This is to protect the intermediary Dl from any possibility of underpayment,
while keeping the model simple to operate. Similarly, in the interests of simplicity and protection against
underpayment, it is assumed that, for each destination Country, the highest possible terminal dues remunera
tion is paid by the intermediary Dl, including the highest possible quality-linked adjustment factor.
The model takes into consideration the 2023 terminal dues rates published in International Bureau circular
No. 110/2022 of 27 June 2022. For terminal dues remuneration received, it considers the total rate per kilo
gramme, which is Composed of the base terminal dues rates of P/G and E format per-item and per-kilogramme
rates according to the average worldwide composition of 1 kilogramme of mail as per Convention article 30.14.
As mentioned previously, the lowest rates are considered, without quality-Iinked adjustments, for the mail flows
from Countries classified in the target system and, similarly, for mail flows from countries classified in the tran
sitional system. The model is also based on the Country-specifiC terminal dues rates of each destination Country
and considers the highest possible remuneration rates available. The terminal dues rates of the destination
countries are increased by the highest quality-linked adjustment factor of 5% only with regard to DOs partiCi
pating in the Quality of Service Link system. The model does not take into consideration any adjustments to
the TD rates payable where the transit Dl is exempt from payment of quality-linked adjustments to TD rates
to other DOs on the basis of article 31-109.2.
3
Output
For each transit group, the worksheet will provide the transportation cost, the handling charge, the transit
charge per kilogramme, TD increment for the transitional system, TD increment for the target system, the total
transit charges for the transitional system and the total transit charges for the target system, in cells D12 to
D18 respectively. These amounts provided in cells D12 to D18 of the worksheet shall be used in the Transit
Compendium, as follows:
CeII in worksheet Column in Transit Compendium — Sections IV and V
D12 F
D13 G
D14 H
D15
D16 J
D17 K
D18 L
Screenshot from the Transit Compendium
8 0 F 0 H 1 J K L
1 Lisi ei Groupa ei CountrieslTerritories ei Destnation for itema in transit decouvert forwarded by air (inrluding SALI
2
u Countr Group nuinber ISO {C0Uhh ol Countrg ol deslination Convepnc Handling Tiansit TOs TDs Total Total
......O,
providiuy open (countr ol deslinalion) e dues rate charge per Charge per insiemeni iniremeot transit transit
sIt services destinauon) per kg kg (SOR) Kg (SDR) PCI kg loi per kg for charge per charge per
(SOR) items items kg loi kg loi
8 receieed recenied lICms items
Irom Irom target receiued receieed
Ilansition ssiem Irom Irom target
sstem coufltlieS tiansition sgstem
countries (SOR) sstem countries
ISDR1 countries ISORI
38 GB Sreat Britaia Guerflsey 4079 1.081 5.160 9.827 8.239 14.987 13.399
39G8 Great Britaia IM bleo!Man 4.079 1.081 5.160 9.827 8.239 14.387 13.399
.08 Great Hritaia JE Jerey 4.079 1.081 5.160 9.827 8.239 14.987 13.399
4108 Gruat Britaia US United StatesofArnerica 4.079 1.081 5.160 9.827 8.239 14.987 13.399
l42G8 Great Britaia SA Saudi Arabia 4.079 1.081 5160 9.827 8.239 14,987 13399
l43G8 Great Britaia FI Fiaiand 4.079 1.081 5.160 9.827 8.239 14.987 13.399
l44G8 Great Britaii AU Äusak 4079 1.081 5.160 9.827 8.239 14.987 13.399
14508 Great Brhaia KE Kenya 4.079: 1.081 5.160 9.827 8.239 14.387 13.399
Great Britaia uY Uruguay 4.079 1.081 5160 9.827 8.239. 14.987 13.399
47G8 Great 8rita’u VN Vietnam , 4.079 1.081 5.160 9.827 8.23 14.987 13.399
48G8 Great Uriaia FK Falkiandu Islands 4.079 1.081 5.160 9.827 8.239 14.987 13.399
In accordance with article 27-110.2, the International Bureau wiII verify and validate the information entered in
the Transit Compendium to ensure that these charges are in accordance with the relevant provisions of the
Convention Regulations.
Instructions
Instructions can be found within the calculation tool.
DO codes
A Iist of DO codes can be found within the calculation tool.