Provisional 2024 quqlity-linked terminal dues rates

Notification of the charges for a 20-gramme small (P) priority letter-post item and for a 175-gramme large (G) priority letter-post item in the domestic service in force on 1 June 202 3 , for the calculation of the provisio nal terminal dues rates for 202 4 Note. – This questionnaire should be completed and returned by designated operators . Priority letter-post items in the domestic service are items conveyed by the quickest route with pr iority (arti cle 17-101.2.1 of the Regulations) within the scope of the universal service obligation . Limits of size and weight for small letters (P) and large letters (G) shall be in accordance with provisions of article 17-105 of the Convention Regulations. If an item exceeds the limits of a format in one or more of the four criteria (length, width, thickness and weight), it shall be classified in the next largest format, provided that it fits within the dimensions of that format (article 17-105.3.1 of the Convention Regulations). This questionnaire is to be returned without a covering letter as soon as possible, but no later than 1 June 202 3 , by e-mail to M r Vytis Staskevicius ( [email protected] ) and Ms Virginia Espinoza ( [email protected] ) , or to the following address: Mr Vytis Staskevicius Remuneration Development Expert UPU International Bureau 30 15 BERNE SWITZERLAND Designated operators are encouraged to send their notification by e-mail or to send a copy by e-mail if they submit their notification by regular mail. Should you have any problems completing this questionnaire, please contact Mr Vytis Staskevicius and Ms Virginia Espinoza by e-mail. Designated operator Full name M r M s Position/title Address Tel. Fax E-mail Date Signature Table 1 – 20-gramme charge for a small (P) priority letter-post item in the domestic service 20-gramme charge for a small (P) priority letter-post item in the domestic service in force on 1 June 202 3 (in national currency) % of VAT or oth er taxes included in the charge Format/category in the domestic service Weight step to which the charge applies (g) (exam ple 0–20 g) Minimum dimensions width – length (mm) Maximum dimensions width – length (mm) Maximum thickness (mm) Relationship between length and width Shape Website address where the information can be viewed Table 2 – 175-gramme charge for a large (G) priority letter-post item in the domestic service 175-gramme charge for a large (G) priority letter-post item in the domestic service in force on 1 June 202 3 (in national currency) % of VAT or oth er taxes included in the charge Format/category in the domestic service Weight step to which the charge applies (g) (exam ple: 101–250 g) Minimum dimensions width – length (mm) Maximum dimensions width – length (mm) Maximum thickness (mm) Relationship between length and width Shape Website address where the information can be viewed Notification of self-declared rates for E format letter-post items with effect from 1 January 202 4 Note . – T he self-declaration of E format rates is optional . Accordingly, the default terminal dues system methodology for E format letter-post items, as provided in articles 30 and 3 1 of the Convention (and as described in section A of this letter), will apply to designated operators of countries that decide not to self-declare their rates for E format letter-post items. Designated operators that decide to apply the self-declaration of their E format rates with effect from 1 January 202 4 , including those that have previously notified their self-declared E format rates, should com plete and return this questionnaire. This questionnaire is to be returned without a covering letter as soon as possible, but no later than 1 June 2023 , by e-mail to Mr Vytis Staskevicius ( [email protected] ) and Ms Virginia Espinoza ( [email protected] ), or to the following address: Mr Vytis Staskevicius Remuneration Development Expert UPU International Bureau 3015 BERNE SWITZERLAND Designated operators are encouraged to send their notification by e-mail or to send a copy by e-mail if they submit their notification by regular mail. Should you have any problems completing this questionnaire, please contact Mr Vytis Staskevicius and Ms Virginia Espinoza by e-mail. Designated operator Full name M r M s Position/title Address Tel. Fax E-mail Date Signature Introduction The following information is required for the notification of self-declared rates for E format letter-post items with effect from 1 January 202 4 : The self-declared rates are expressed as both a per-item and per-kilogramme rate in local currency . The self-declared rates shall not exceed the country-specific ceiling rates that are determined on the basis of 70% of the priority single-piece tariffs of equivalent domestic services for 20-gramme, 35-gramme, 75-gramme, 175-gramme, 250-gramme, 375-gramme, 500-gramme, 750-gramme, 1,000-gramme, 1,500-gramme and 2,000-gramme E format letter-post items, in local currency , exclu sive of any taxes and in effect on 1 June 202 3 . Concerning the self-declared rates for E format letter-post items applicable to letter-post flows between designated operators other than the United States, the notified self-declared rates for 202 4 shall not lead to a revenue higher than either the ceiling rates or the maximum revenue of 202 4 . More specifically, the self-declared rates shall be set, as a maximum, at either the revenue calculated with the country-specific ceiling rates, or the revenue in 202 3 increased by 1 6 % for an E format item at 0.158 kilo grammes, whichever is lower. In relation to the above - mentioned domestic single - piece tariffs , they should be provided indicating the VAT rate or other taxes included . Where, in accordance with article 2 9 .1.2 of the UPU Convention, multiple services are used for the notification of the domestic tariffs, the corresponding rate of VAT or other taxes for each of those services should be clearly indicated . Clearly indicate whether the basic service for which the domestic tariff info r matio n is provided includes any additional service features, such as registration (signature upon delivery and liability), insurance or tracking . I ndicate that the relevant service includes these particular features only if they form an integral part of the delivery service, i.e. the delivery service cannot be purchased without the said service fea ture(s). Provide this information for each of the 11 weight increments separately . A source for verification should be indicated in respect of all information provided. This verification source could be a publicly accessible website on which the tariff information and service specifications are clearly specified, information in product brochures, postal legislation or regulations, or written con firmation by the regulator. The International Bureau will verify the information against the source pro vided . For the self-declared rates applicable to letter-post flows from all designated operators other than from the United States , as well as for the self-declared rates applicable to the letter-post flows to and from the United States , please note that the ratio between the self-declared item rate and kilogramme rate must not change by more than five percentage points upwards or downwards in respect of the item-to-kilogramme ratio set in 202 3 . For example, if the ratio of the E format rates was 44.5% in 202 3 , the self-declared item and kilogramme rates for 202 4 should result in a new ratio within the 39.5% to 49.5% range. Please note that these percentages are rounded to one decimal place for ease of reference, whereas real ratio variations will be calculated with the real item and kilo gramme rates with all decimal places. Notification The self-declared rates (table 1) must be provided in local currency or SDR; the domestic tariff information (tables 2 to 12) must be provided in local currency. Local currency used for the purpose of this notification: Table 1 – Self-declared rates for bulky (E) and small packet (E) priority letter-post items, exclusive of any taxes, expressed in l ocal currency for inbound flows For flows from all countries other than the United States For flows from the United States (not applicable to the United States) Self-declared per-item rate Self-declared per-kilogramme rate Currency (local currency or SDR) To following question is only to be completed by designated operators of countries classified in groups II, III and IV of the terminal dues classification system. The above - signed designated operator wishes to apply self-declared E format terminal dues rates, on a recip rocal basis, with the designated operator of the United States in case its outbound flow to the United States is below the thresholds referred to in paragraphs 1.1.6 and 1.1.7 of article 29 of the Convention. Yes (b y selecting this option, the designated operator understands that the partner design a ted oper ator of the United States may do likewise and apply self-declared rates including on the flow referred to in articles 29.1.1.6 and 29.1.1.7 of the Convention) No (b y selecting this option, the designated operator understands that the partner design a ted oper ator of the United States is not allowed to apply self-declared rates on the flow referred to in articles 29.1.1.6 and 29.1.1.7 of the Convention. The designated operator also understands that, subject to the principle of reciprocity, it cannot apply self-declared E format terminal dues rates on the mail flow from the designated operator of the United States should the conditions in articles 29.1.1.6 and 29.1.1.7 of the Convention apply ) Table 2 – Domestic tariff for a 20-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 2 Tracking Yes No Domestic supplemental charge, if available: 2 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 3 – Domestic tariff for a 35-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 4 Tracking Yes No Domestic supplemental charge, if available: 4 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 4 – Domestic tariff for a 75-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 6 Tracking Yes No Domestic supplemental charge, if available: 6 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 5 – Domestic tariff for a 175-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 8 Tracking Yes No Domestic supplemental charge, if available: 8 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 6 – Domestic tariff for a 250-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 1 0 Tracking Yes No Domestic supplemental charge, if available: 1 0 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 7 – Domestic tariff for a 375-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 1 2 Tracking Yes No Domestic supplemental charge, if available: 1 2 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 8 – Domestic tariff for a 500-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 1 4 Tracking Yes No Domestic supplemental charge, if available: 1 4 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 9 – Domestic tariff for a 750-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 1 6 Tracking Yes No Domestic supplemental charge, if available: 1 6 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 10 – Domestic tariff for a 1,000-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 1 8 Tracking Yes No Domestic supplemental charge, if available: 1 8 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 11 – Domestic tariff for a 1,500-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 20 Tracking Yes No Domestic supplemental charge, if available: 20 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Table 12 – Domestic tariff for a 2,000-gramme bulky (E) or small packet (E) priority letter-post item in the domestic service , in effect on 1 June 202 3 Rate if zonal pricing does not apply (in local cur rency) Rate if zonal pricing applies If zonal pricing applies, indicate which method is applied to determine the zonal tariff : The zonal tariff indicated above corresponds to the actual weighted average distance of the designated operator ’ s inbound bulky (E) and small packet (E) letter-post items . The zonal tariff corresponds to the mid - point of the domestic zonal tariff system . VAT rate or other taxes included in the charge Format/category in the domestic service Indicate whether any of the following service fea tures are included in the basic service: Registration (signature upon delivery and liability) Yes No Domestic supplemental charge, if available: Insurance Yes No Domestic supplemental charge, if available: 22 Tracking Yes No Domestic supplemental charge, if available: 22 Product name in the domestic service Minimum dimensions: width – length (mm) Maximum dimensions: width – length (mm) Maximum thickness (mm) Shape/ratio between length and width Website address to view this information Quality of service link to terminal dues Note. – Designated operators from member countries already participating in the quality - link ed terminal dues system (see Annex 4 ) and that will continue participating in the system in 202 4 do not need to return this questionnaire! Designated operators of countries currently participating in the quality - link ed terminal dues system (see Annex 4) and that wish to discontinue their participation in the system in 202 4 are requested to use this questionnaire and select option 2 or 3 under question 1, as applicable. Designated operators from member countries not listed in Annex 4 are urged to return this form without a covering letter as soon as possible , but no later than 1 June 2023 , by e-mail to Mr Vytis Staskevicius ( [email protected] ) and Ms Virginia Espinoza ( [email protected] ), or to the following address: Mr Vytis Staskevicius Remuneration Development Expert UPU International Bureau 3015 BERNE SWITZERLAND Designated operators are encouraged to send their notification by e-mail or to send a copy by e-mail if they submit their notification by regular mail. Should you have any problems completing this questionnaire, please contact Mr Vytis Staskevicius and Ms Virginia Espinoza by e-mail. Designated operator Full name M r M s Position/title Address Tel. Fax E-mail Date Signature 1 Participation in the quality of service link to terminal dues Please refer to the information provided in the covering letter and the provisions in articles 3 1 -109 and 3 1 -110 of the Convention Regulations , and select only one of the three options below: Option 1: The designated operator completing this questionnaire will begin linking terminal dues to its quality of service from 1 January 202 4 . (If this option is selected, please proceed to question 2.) Option 2: The designated operator completing this questionnaire will not link quality of service to terminal dues from 1 January 202 4 and understands that this means that it will receive 100% of the base terminal dues rates from partner designated operators, but that it will pay all other designated operators in the target system quality-adjusted terminal dues rates, and will in no case pay terminal dues rates lower than 100% of the base terminal dues rates. (If this option is selected, there is no need to answer any further questions in this questionnaire.) Option 3: The designated operator completing this questionnaire will not link quality of service to terminal dues on the basis of the provisions of article 3 1 -109.3 of the Regulations and declares in particular that it meets the requirement of having a total annual inward mail volume of less than 100 tonnes (details to be provided below). Designated operators selecting option 3 are asked to provide the most recent annual inward volume corre sponding to the last four quarters for which the statements of weights have been accepted. Annual inward letter-post volume (in tonnes): The letter-post mail volume provided under 1 refers to the last four accepted quarter s as follows: From quarter of year To quarter of year Annex 4 to letter 0426(DPRM.PPRE.RDI)1039 of 4 April 2023 Participants in the quality of service link to terminal dues in 2023 The member countries and territories listed below already participate in the quality link to terminal dues and do not need to respond to the questionnaire in Annex 3. Albania Korea (Rep.) Armenia Latvia Australia Lebanon Austria Liechtenstein Barbados Lithuania Belarus Luxembourg Belgium Malaysia Benin Malta Bhutan Morocco Bosnia and Herzegovina Netherlands Botswana New Zealand Brazil North Macedonia Brunei Darussalam Norway Burkina Faso Poland Canada Portugal Chile Qatar China (People’s Rep.) Romania – Hong Kong, China Russian Federation – Macao, China Singapore Costa Rica Slovakia Côte d'Ivoire (Rep.) Slovenia Croatia Spain Cyprus Sri Lanka Denmark Suriname El Salvador Sweden Estonia Switzerland Eswatini Tanzania (United Rep.) Finland Thailand France Togo Germany Trinidad and Tobago Ghana Türkiye Greece United Kingdom Hungary – Cayman Islands Iceland – Gibraltar Ireland United States of America Israel Vatican Italy Viet Nam Japan Kazakhstan Pro  UPU International Bureau To: The designated operators of Union Weltpoststrasse 4 member countries 3015 BERNE SWITZERLAND T +41 31 350 31 11 F +41 31 350 31 10 www.upu.int Contact: Mr Vytis Staskevicius [email protected] Berne, 4 April 2023 Reference: 0426(DPRM.PPRE.RDI)1039 Subject: Provisional 2024 quality-linked terminal dues rates Dear Sir/Madam, The purpose of this letter is to provide details concerning the collection of information from designated opera- tors (DOs) for the calculation and publication of the provisional terminal dues rates applicable in 2024, as provided for in articles 28, 29, 30 and 31 of the UPU Convention. The information to be notified is both for the terminal dues system methodology for P/G and E format letter- post items in accordance with articles 30 and 31 of the Convention (referred to below as the default method- ology), and for the optional self-declaration of rates for E format letter-post items in accordance with article 29 of the Convention (referred to as the E format self-declared rates methodology). The two methodologies, and the information to be notified, are summarized in sections A and B of this circular letter, while the conditions applicable to the quality of service link to terminal dues are set out in section C. A. Default methodology for P/G and E format letter-post items Article 30 of the Convention and article 31-107 of the Convention Regulations provide that the payment of terminal dues for the exchange of P/G format letter-post items between designated operators of countries in the target system shall be based on 70% of the charges, exclusive of VAT or other taxes, for a 20-gramme small (P) and for a 175-gramme large (G) priority letter-post item in the domestic service, in force on 1 June of the year preceding the calendar year to which the terminal dues rates apply. For bulky (E) and small packet (E) letter-post items, the terminal dues are calculated from the P/G format line tilted at 375 grammes, exclusive of VAT or other taxes. The third Extraordinary Congress in Geneva in 2019 decided that the provisions of article 30, paragraphs 1 to 3 and 5 to 7, of the UPU Convention shall also apply to the calculation of terminal dues rates for E format letter- post items (bulky letters and small packets) in flows to, from and between designated operators of countries in the transitional system (group IV of the classification system).  2 Collection of domestic charges for the application of the default methodology The IB will calculate the provisional terminal dues rates for 2024 based on the charges corresponding to priority items in the domestic service in force on 1 June 2023 and the average monthly SDR exchange rates for the period from 1 November 2022 to 31 March 2023. In accordance with article 31-107 of the Convention Regulations, designated operators are kindly asked to provide the IB, by 1 June 2023, with the charges in national currency for a 20-gramme small (P) priority letter- post item and for a 175-gramme large (G) priority letter-post item in the domestic service in force on 1 June / 2023, by completing the form in Annex 1. This form is also available in electronic format on the UPU website at www.upu.int/en/tdr. Please note that priority letter-post items in the domestic service are items conveyed by the quickest route with priority within the scope of the universal service obligation (USO). B. Self-declared rates methodology for E format letter-post items In accordance with article 29 of the Convention self-declared rates for E format letter-post items shall substitute as appropriate any reference to or rate calculation concerning E format letter-post items elsewhere in the Convention or its Regulations. Please note that the self-declaration of E format rates is optional. Accordingly, the default terminal dues system methodology for E format letter-post items, as provided in articles 30 and 31 of the Convention (and as described in section A of this letter), will apply to designated operators of countries that decide not to self- declare their rates for E format letter-post items. B1 Self-declaration of E format rates Article 29.1 of the Convention states that designated operators may notify the IB, by 1 June, of a self-declared rate per item and a self-declared rate per kilogramme, expressed in local currency or SDR, that shall apply for E format letter-post items in the following calendar year. The IB shall annually publish the provided self- declared rates in SDR (the rates provided in local currency are converted to SDR) by means of an IB circular no later than 1 July of the year preceding the year in which they apply. Additionally, designated operators shall provide the IB with 11 domestic rates for equivalent services, in order to enable the calculation of their relevant ceiling rates. Conditions applicable to the self-declaration of E format rates Designated operators that wish to apply self-declared terminal dues rates for E format letter-post items with effect from 1 January 2024 for letter-post flows from all DOs, with the exception of the letter-post flows referred to in paragraphs 1.1.6 and 1.1.7 of article 29 and the flows to and from the United States of America, should observe the following conditions: i The self-declared rates shall be expressed as both a per-item and per-kilogramme rate in local currency. ii The self-declared rates shall not exceed the country-specific ceiling rates that are determined on the basis of 70% of the priority single-piece tariffs of equivalent domestic services for 20-gramme, 35-gramme, 75-gramme, 175-gramme, 250-gramme, 375-gramme, 500-gramme, 750-gramme, 1,000-gramme, 1,500-gramme and 2,000-gramme E format letter-post items, exclusive of any taxes and in effect on 1 June 2023. iii Please be mindful of the following conditions applicable to the notification of the above-mentioned pri- ority single-piece tariffs in the domestic service: a When multiple rates are available based on thickness, the lesser domestic tariff shall be used for items up to 250 grammes, and the higher domestic tariff shall be used for items above 250 grammes. b Where zonal rates apply in the equivalent domestic service, the mid-point rate shall be used, and domestic tariffs for non-contiguous zones shall be excluded for determination of the mid-point rate. Alternatively, the determination of the zonal tariff to be used may be based on the actual weighted average distance of inbound E format letter-post items (for the most recent calendar year). If these conditions apply, the designated operator must provide the relevant information on how the zonal tariffs have been determined.  3 c The designated operator must indicate for each of the weight increments whether the equivalent domestic service and tariff include any additional features that are not part of the basic service, i.e. tracking, signature and insurance services. The calculation rules in article 29.1.2.4 shall apply in the calculation of the country-specific ceiling rates. iv The determination of whether or not the self-declared E format rates exceed the country-specific ceiling rates will be carried out on the basis of the calculated revenue at the weight of 158 grammes, which is the worldwide average weight of E format items. The notified self-declared rates for 2024 shall not lead to a revenue higher than either the ceiling rates or the maximum revenue of 2024; in other words, the self-declared rates shall be set, as a maximum, at either the revenue calculated with the country-specific ceiling rates, or the revenue in 2023 increased by 16% for an E format item at 0.158 kilogrammes, whichever is lower. v The ratio between the self-declared item rate and kilogramme rate shall not change by more than five percentage points upwards or downwards in respect of the item-to-kilogramme ratio set in the previous year. For example, if the ratio of the E format rates was 44.5% in 2023, the self-declared item and kilogramme rates for 2024 should result in a new ratio within the 39.5% to 49.5% range. Please note that these percentages are rounded to one decimal place for ease of reference, whereas real ratio var- iations will be calculated with the real item and kilogramme rates with all decimal places. B2 Self-declaration of E format rates for flows between designated operators and the United States of America In accordance with article 29.7 of the Convention, the designated operator of the United States self-declared its E format rates, with the exception of the letter-post flows referred to in paragraphs 1.1.6 and 1.1.7, without the application of the maximum revenue increase limits set out in article 29.2. 1 According to article 29.9 of the Convention, all other corresponding designated operators may do likewise with respect to the designated operator of the United States. This includes designated operators whose outbound flows are referred to in paragraphs 1.1.6 and 1.1.7, as they are also allowed to self-declare their E format terminal dues rates with respect to the US designated operator as long as the reciprocity in article 29.7 is preserved, i.e. the designated operator of the United States, on a reciprocal basis, is allowed to apply self- declared E format terminal dues rates on the mail flows referred to in paragraphs 1.1.6 and 1.1.7 of article 29. Designated operators whose outbound flows are referred to in paragraphs 1.1.6 and 1.1.7 have the choice not to pay the self-declared E format terminal dues rates to the US designated operator, though they should bear in mind that, on the basis of the principle of reciprocity, they cannot apply the self-declared rates to the mail flow from the United States. Designated operators of countries classified in groups II, III or IV of the terminal dues classification system that wish to apply self-declared E format terminal dues rates should indicate in Annex 2 whether they wish to apply the conditions in paragraphs 1.1.6 and 1.1.7 of article 29, i.e. not pay self-declared E format terminal dues rates to the United States DO should their outbound volumes be below the relevant thresholds in paragraphs 1.1.6 and 1.1.7, and thereby waive the possibility of applying self-declared E format terminal dues rates on their inbound flow from the United States (provided their outbound volumes do not exceed the thresholds in in paragraphs 1.1.6 and 1.1.7), or whether they do wish to apply, on a reciprocal basis, the self-declared E format terminal dues rates with the US designated operator, irrespective of the size of their outbound mail flow to the United States. Conditions applicable to the self-declaration of E format rates for flows to and from the United States Designated operators that wish to apply self-declared terminal dues rates for E format items with effect from 1 January 2024 for letter-post flows to and from the United States, other than those referred to in para- graphs 1.1.6 and 1.1.7 of article 29, should observe the following conditions: i The self-declared rates shall be expressed as both a per-item and per-kilogramme rate in local currency. ii The self-declared rates shall not exceed the country-specific ceiling rates that are determined on the basis of 70% of the priority single-piece tariffs of equivalent domestic services for 20-gramme, 1 The clause in article 29.7 was invoked by the DO of the United States through formal notification to the IB on 27 February 2020, and on the basis of evidence that it had received total annual inbound letter-post volumes in excess of 75,000 tonnes in 2018. Consequently, the DO of the United States is allowed to self-declare its E format rates on the basis of the conditions set out in article 29.7.  4 35-gramme, 75-gramme, 175-gramme, 250-gramme, 375-gramme, 500-gramme, 750-gramme, 1,000-gramme, 1,500-gramme and 2,000-gramme E format letter-post items, exclusive of any taxes and in effect on 1 June 2023. iii Please bear in mind the following conditions applicable to the notification of the above-mentioned priority single-piece tariffs in the domestic service: a When multiple rates are available based on thickness, the lesser domestic tariff shall be used for items up to 250 grammes, and the higher domestic tariff shall be used for items above 250 grammes. b Where zonal rates apply in the equivalent domestic service, the mid-point rate shall be used, and domestic tariffs for non-contiguous zones shall be excluded for determination of the mid-point rate. Alternatively, the determination of the zonal tariff to be used may be based on the actual weighted average distance of inbound E format letter-post items (for the most recent calendar year). If these conditions apply, the designated operator must provide the relevant information on how the zonal tariffs have been determined. c The designated operator must indicate for each of the weight increments whether the equivalent domestic service and tariff include any additional features that are not part of the basic service, i.e. tracking, signature and insurance services. The calculation rules in article 29.1.2.4 shall apply in the calculation of the country-specific ceiling rates. iv The determination of whether or not the self-declared E format rates exceed the country-specific ceiling rates will be carried out on the basis of the calculated revenue at the weight of 158 grammes, which is the worldwide average weight of E format items. The notified self-declared rates for 2024 shall not lead to a revenue higher than the revenue calculated with the country-specific ceiling rates at 0.158 kilo- grammes. v The ratio between the self-declared item rate and kilogramme rate shall not change by more than five percentage points upwards or downwards in respect of the item-to-kilogramme ratio set in the previous year. For example, if the ratio of the E format rates applicable to the mail flow from the United States was 44.5% in 2023, the self-declared item and kilogramme rates for 2024 should result in a new ratio within the 39.5% to 49.5% range. Please note that these percentages are rounded to one decimal place for ease of reference, whereas real ratio variations will be calculated with the real item and kilogramme rates with all decimal places. In accordance with article 29.5 of the Convention, designated operators that have self-declared their E format rates for 2023 and that do not communicate different self-declared rates for 2024 shall continue to apply the existing self-declared rates unless they do not satisfy the conditions laid out in article 29. For this purpose, the designated operators concerned shall notify the IB of their priority single-piece tariffs of equivalent domestic services for 20-gramme, 35-gramme, 75-gramme, 175-gramme, 250-gramme, 375-gramme, 500-gramme, 750-gramme, 1,000-gramme, 1,500-gramme and 2,000-gramme E format letter-post items, exclusive of any taxes and in effect on 1 June 2023. This data is necessary for the IB to calculate and check whether the revenue conditions described above would be met. In the absence of the notification by the des- ignated operator concerned of the above-mentioned 11 domestic tariffs, the self-declared rates of the previous year (2023) cannot be carried over to the subsequent year (2024). In that case, the IB will calculate and publish the E format rates of the designated operator concerned according to the default terminal dues methodology (see section A). In other words, this would mean that the designated operator is opting out of the self- declaration of E format rates in 2024. B3 Collection of self-declared rates and domestic tariff information Designated operators that wish to self-declare their E format rates in 2024 are kindly asked to provide the IB / with all relevant information by completing the form attached in Annex 2 by 1 June 2023. This form is also available in electronic format on the UPU website at www.upu.int/en/tdr. Designated operators that notified their self-declared E format rates in 2023 and would like to maintain them for 2024 are also asked to complete the form in Annex 2 for the notification of their domestic tariffs, in accord- ance with the conditions applicable to the self-declaration of E format rates.  5 B4 Rate calculator for E format self-declared rates A rate calculator is available on the UPU website (www.upu.int/en/tdr) for simulation purposes. This tool will assist designated operators in calculating their default terminal dues rates (see section A), as well as their country-specific ceiling rates based on the aforementioned 11 domestic tariffs for E format items. The rate calculator furthermore provides an indication of whether the self-declared E format rates observe the conditions outlined in sections B1 and B2 of this letter and article 29 of the Convention. This rate calculator is provided for information purposes only and does not imply acceptance of the notified self-declared rates or of the domestic tariff information, both of which will be subject to review and validation by the IB before publication on 1 July 2023. C. Quality of service link to terminal dues According to article 28.5 of the Convention, “terminal dues remuneration shall be based on quality of service performance in the country of destination”. Designated operators shall base their terminal dues remunerations on quality of service performance and participate in a UPU-agreed quality of service measurement system. Under article 31-109 of the Regulations, the Postal Operations Council (POC) sets annual quality of service standards and targets for the link between UPU terminal dues and quality of service, based on the standards of the domestic service for comparable items and conditions. Article 31-110 of the Regulations details the principles for setting quality of service standards and targets for the quality of service link. The standards and targets approved by the POC shall be in accordance with the principles set out above. C1 Principles of the quality link to terminal dues The following are the principles applied to the quality-linked terminal dues system: – All designated operators, irrespective of whether they are DOs of countries and territories in the target or in the transitional system, shall have their terminal dues remuneration based on quality of service performance in the country of destination. To this end, participation in a UPU-agreed measurement system compliant with the UPU Global Monitoring System (GMS) Technical Design is mandatory. – Exceptionally, designated operators of countries that have a total annual inward mail volume below 100 tonnes may request exemption from the quality link to terminal dues, which means that they would opt to receive from, and pay to, all the other DOs in the target system 100% of the base terminal dues rates without any adjustments based on quality of service performance. Countries wishing to request such exemption must notify the IB of their total inward mail volumes for the previous year (2022) by 1 June 2023. This provision is not available to DOs from countries classified in group I. – If a designated operator does not qualify for the above exemption and does not put in place a UPU- agreed measurement system compliant with the UPU GMS Technical Design, it will receive 100% of the base terminal dues rates from other designated operators. However, it will be required to pay other designated operators quality-adjusted terminal dues rates and will in no case pay any terminal dues at a rate lower than 100% of the base terminal dues rates. To ensure participation in the UPU quality link to terminal dues in 2024, members are asked to complete the / response form in Annex 3, also available at www.upu.int/en/tdr, and return it to the IB by 1 June 2023. Desig- nated operators that wish to be exempted from the mandatory application of the quality-linked terminal dues system and meet the requirement of having a total annual inward mail volume of less than 100 tonnes should use the same form in Annex 3 to notify the IB, in accordance with article 31-109.3 of the Regulations. / Designated operators already participating in the quality-linked terminal dues system (see Annex 4) do not need to return the form in Annex 3, unless they wish to inform the International Bureau of their decision to discontinue their participation in the system in 2024. Designated operators of countries that are not listed in Annex 4 should inform the IB of their domestic service standards and targets. These standards, once verified and approved by the Postal Operations Council, will be used for the purpose of linking quality of service performance to terminal dues, provided that a UPU-agreed measurement system compliant with the GMS Technical Design has been put in place no later than 1 January 2024.  6 C2 Setting of quality of service standards and targets for the quality of service link to terminal dues In accordance with article 31-110 of the Regulations, for the purpose of the quality-linked terminal dues remu- neration in 2024, the quality of service standards and targets will be set by the POC based on standards and targets applicable in the domestic service with respect to comparable items and conditions. Therefore, members are kindly requested to provide the IB, by 1 June 2023, with the information on the quality of service standards of the domestic service whose charges are used for calculating terminal dues under the default methodology (i.e. the domestic service standards relating to the domestic charges that you provided through the response form in Annex 1). It is important that domestic standards be verifiable by being published on your website, printed in your general terms and conditions, or confirmed in writing by your regulator or government. In the absence of domestic standards, the applicable standard will be established by taking account of the ability of the designated operator concerned to achieve a minimum level of performance, as defined by the POC. Please consider the principles for setting quality of service standards and targets as specified in arti- cle 31-110 of the Regulations. C3 Quality-adjusted terminal dues rates For all designated operators that have put in place a UPU-agreed measurement system compliant with the GMS Technical Design, the final quality-linked terminal dues rates will be calculated by the IB following the publication of the final quality of service results, applying the following principles of article 31-109 of the Regulations: – As an incentive for the participation in the quality link, the designated operators will receive an increase of 5% over the country-specific terminal dues base rates. – Participating designated operators will be subject to a penalty if the quality targets are not met. This penalty will be one third of 1% of the terminal dues for each percentage point under the performance target. – The penalty will in no case exceed 10% and, given the 5% incentive for participation, the maximum penalty will not lead to remuneration lower than 95% of the terminal dues base rates. – Quality-adjusted terminal dues rates will never be lower than the minimum rates defined in articles 30 and 31 of the UPU Convention. Should you have any questions, please do not hesitate to address them to the Remuneration Development Expert whose details are provided at the top of this letter and on the first pages of Annexes 1, 2 and 3. Many thanks in advance for your cooperation. Yours faithfully, Siva Somasundram Director of Policy, Regulation and Markets Saatja: BECHTEL olivier @ ISS <[email protected]> Saadetud: 19.04.2023 12:20 Adressaat: BECHTEL olivier @ ISS <[email protected]> Koopia: ESPINOZA virginia <[email protected]>; STASKEVICIUS vytis <[email protected]> Teema: TR: UPU Circular Letter 0426(DPRM.PPRE.RDI)1039 Manused: EN.zip; AR.zip; ES.zip; FR.zip; PO.zip; RU.zip Dear Sir/Madam, Please find attached IB circular letter 0426(DPRM.PPRE.RDI)1039 concerning the collection of information for the implementation of the terminal dues systems applicable in 2024. All designated operators of UPU member countries are kindly requested to examine this letter and to provide the International Bureau with all relevant information by completing the forms in Annexes 1, 2 and 3. The duly completed forms should be returned as soon as possible, but no later than 1 June 2023, by e- mail to Mr Vytis Staskevicius ([email protected]) and Ms Virginia Espinoza ([email protected]). Thank you for your cooperation. Best regards Madame, Monsieur, Veuillez trouver en pièce jointe la lettre circulaire du Bureau international 0426(DPRM.PPRE.RDI)1039 relative au recueil d’informations aux fins de la mise en œuvre des systèmes de frais terminaux applicables en 2024. Tous les opérateurs désignés des Pays-membres de l’UPU sont priés d’examiner cette lettre et de transmettre au Bureau international tous les renseignements nécessaires en remplissant les formules figurant en annexes 1 à 3. Les formules dûment remplies doivent être renvoyées dès que possible, mais le 1er juin 2023 au plus tard, par courrier électronique à Vytis Staskevicius ([email protected]) et Virginia Espinoza ([email protected]). Merci pour votre collaboration. Meilleures salutations