India Post targets foreign couriers over terminal dues

The government is losing out on foreign exchange receipts because international courier companies are eating into the Department of Posts share of terminal dues.

The government is losing out on foreign exchange receipts because international courier companies are eating into the Department of Posts DoP8217;s share of terminal dues.

Terminal dues are a form of payment that compensate postal administrations for processing and delivering letters and mail coming from other countries. They contributed Rs 34.9 crore to the country8217;s forex kitty in 2003.

But senior DoP sources told The Indian Express that the international companies are cutting down this revenue source by injecting their mail into the India Post system without paying dues.

8220;They some international couriers are injecting their mail into the postal system. We have won a legal ruling in this matter and the Universal Postal Union UPU has also given a ruling that they cannot do it,8221; the official said on condition of anonymity. He refused further details on the court ruling.

Sources estimate the loss of revenues to the exchequer on account of this illegal flow of letters at Rs 1,200 crore annually. DoP sources, however, pointed out that any member country of the UPU, must abide by basic quality standards that are not known or audited for the private parties.

8220;For example, when a mail comes from US and lands in Mumbai, some private couriers just place Indian postage stamps on their mail and then use our network to reach the final destination in India,8221; the official said.

The upshot is that DoP officials believe they are not only losing revenues, but also forcing the ordinary Indian postman into doing a tougher day8217;s work. 8220;Once we formulate the right regulations and rules, it will stop,8221; the official said.

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Today DoP8217;s deficit stands at Rs 1,300-Rs 1,500 crore, substantially because of its Universal Service Obligations. However, this illegal 8220;injection8221; of letters amounts to 25-35 per cent of the total receipts on DoP8217;s international operations.

Roughly 4-billion airmail letters are delivered every year worldwide, and India8217;s postal networks are considered to be the widest and fastest growing.

Big Business

8226; When you post a letter abroad, you buy stamps locally, but some of your money goes to the postal operator delivering your letter. These are called terminal dues.

8226; Traditionally, money was exchanged based on the imbalance between two postal operators in terms of the number of letters received and sent.

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8226; Today, quality of service counts towards the level of payment made. Therefore, delivery record decides the terminal dues receipts.