Regulations to the Universal Postal Convention and its Final Protocol 3. pants

In order to qualify for the supplementary remuneration,

participating designated operators must fulfil the conditions for

this category of items defined in paragraphs 2 and 3.

2 Additional service features

2.1 In order for designated operators offering tracked items

and/or opting to link the remuneration of registered and/or

insured items with the offer of additional service features to

qualify for supplementary remuneration, they shall transmit

electronic information for these items, as defined in article

17-131.

3 Deadlines for transmission and quality targets

3.1 In order for the inward registered or insured items to

qualify for supplementary remuneration in a relation between a

designated operator of origin and destination which meet the

conditions set in paragraph 2, the designated operator of

destination shall observe (in this specific relation) the

following targets associated with the transmission of item

scanning event information:

3.1.1 Fifty-six percent of the items that receive an EMC

(departure from office of exchange) event shall have an EMD

(arrival at inward office of exchange) event transmitted within

24 hours of the event time and date;

3.1.1.1 The target in 3.1.1 shall be considered as achieved in

cases where the number of items that receive an EMD event within

the respective transmission time set out in paragraph 3.1.1

exceeds the number of items that receive an EMC event;

3.1.1.2 Fifty-six percent of the items that receive an EMD

shall have an EDH (arrival at collection point for pick up by

recipient) or EMH (attempted/unsuccessful delivery) and/or an EMI

(final delivery) event, each transmitted within 24 hours of the

event time and date.

3.2 In order for the inward tracked delivery items to qualify

for supplementary remuneration in a relation between a designated

operator of origin and destination that meet the conditions set

in paragraph 2, the designated operator of destination shall

observe (in this specific relation) a performance result above

75%. For each flow, the performance result shall be determined on

the basis of the lowest between:

3.2.1 The ratio of EMD events transmitted within 24 hours of

the event time and date over the number of EMC (departure from

office of exchange) events that were transmitted by the origin

designated operator;

3.2.2 The ratio of EDH (arrival at collection point for pick

up by recipient), EMH (attempted or unsuccessful delivery

attempt) and/or EMI (final delivery) events over EMD events, all

transmitted within 24 hours of the event time and date.

3.3 For the purpose of determining the performance result in

3.2, the ratio in 3.2.1 shall not apply in cases where the number

of items that receive an EMD event within the respective

transmission time set out in paragraph 3.2.1 exceeds the number

of items that receive an EMC event.

4 Amount of the supplementary remuneration

4.1 On a monthly basis, for the total number of inward

registered or insured items in each category exchanged on a given

relation between designated operators for which the conditions

defined in paragraph 2.1 and the quality targets defined in

paragraph 3 are met, a supplementary remuneration of 0.5 SDR per

item will be paid by the designated operator of origin to the

designated operator of destination.

4.2 On a monthly basis, for the total number of inward tracked

items exchanged on a given relation between designated operators

for which the conditions defined in paragraph 2.1 and the quality

tar- gets in paragraph 3 are met, a supplementary remuneration

per item shall be paid by the designated operator of origin to

the designated operator of destination. The amount of the

supplementary remuneration per qualifying item shall be 0.03 SDR

for each percentage point above 75 and up to 100% as determined

in paragraph 3.2 above, with a maximum rate of 0.75 SDR per

item.

4.3 Qualifying items are all inward tracked delivery items

that have both an EMD event and an EDH, EMH or EMI event

transmitted within the time limits indicated in 3.2, irrespective

of whether these items have an associated EMC event. The total

amount of supplementary remuneration for tracked delivery items

shall be determined by multiplying the number of qualified items

with the remuneration determined in 4.2 above.

5 Communication of the offer of tracked or additional service

features

5.1 The offer of additional service features associated with

supplementary remuneration for registered and insured items shall

be notified to the International Bureau. The offer of the

optional tracked delivery service shall also be notified to the

International Bureau, so that the designated operator concerned

can be eligible to be paid the associated additional payments in

paragraph 1.2 and supplementary remuneration in paragraph 4.2,

provided it meets the conditions and requirements stipulated in

those paragraphs. Relevant information will be presented in the

Letter Post Compendium. The reporting and payment of the

additional remuneration shall be effective the first quarter

after the date of notification but not within less than two

months after the date of notification.

Article 31-105

Measurement of performance. Reporting and validation

1 Measurement

1.1 The performance against quality targets as well as the

list of accountable tracked items for additional payment referred

to in article 31-104 shall be measured by a suitable recognized

system, which shall make use of the scanning information

transmitted.

1.2 Monthly performance reports shall be produced and shall be

communicated to the designated operators participating in the

supplementary remuneration programme and/or offering tracked

items as described in article 31-104.2.1.

2 Reporting

2.1 The monthly reports shall present the performance and

corresponding remuneration for the transmission of scanning

information for the inward items received by each designated

operator in its relation with each of the other designated

operators participating in the supplementary remuneration pro-

gramme or those designated operators offering tracked items as

described in article 31-104.2.1.

2.2 The International Bureau shall complement these monthly

performance reports with quarterly reports aggregating the

results of the monthly performance reports for the three months

in each quarter. These quarterly reports shall sum up the

supplementary remuneration due with a list of relations by

category of items on which the inward items qualify for the

supplementary remuneration. These reports shall be communicated

to the designated operators participating in the supplementary

remuneration programme or those designated operators offering

tracked items as described in article 31-104.2.1 according to the

following schedule:

2.2.1 Monthly performance reports - within one month following

the end of the reporting period;

2.2.2 Quarterly aggregate reports - in conjunction with the

monthly report in the month following the end of each

quarter.

2.3 The monthly reports shall be considered as final if no

query has been received by the International Bureau within one

month of the issue of the most recent monthly report.

3 Treatment of queries

3.1 Designated operators may query the results by bringing

evidence to the International Bureau and shall also notify the

affected designated operator in question. The POC shall make a

binding decision on the query based on an evaluation carried out

by the International Bureau, which must include any supporting

information provided by the designated operator that submitted

the query.

4 Costs

4.1 The costs of administering these additional service

features shall be borne by the participating designated

operators.

Article 31-106

Preparation and transmission of charges for supplementary

remuneration accounts and additional payments based on central

reports

1 The creditor designated operator shall be responsible for

preparing quarterly or annual accounts and forwarding them to the

debtor designated operator. The accounts shall be based on the

quarterly aggregate reports from monthly reports provided by the

International Bureau as described in article 31-105.2.2.

2 The detailed accounts shall be prepared and transmitted as

follows:

2.1 The creditor designated operator shall list on a CN 60

form the monthly total number of qualifying items and the

corresponding supplementary remuneration or additional payment as

reported by the International Bureau.

2.2 The rules for the transfer and acceptance of accounting

forms provided for in article 35-001 shall be applied to CN 60

accounts.

2.3 The CN 60 accounts shall be sent to the debtor designated

operator no later than one month following receipt from the

International Bureau of the supplementary remuneration quarterly

or annual reports to which they refer.

2.4 In principle, the statements shall be regarded as fully

accepted as rendered with no changes or amendments since the

account information used is from a suitable recognized system and

the reports are provided by the International Bureau. Statements

that are not accepted shall be accompanied with evidence that the

debtor designated operator has queried the results of the report

published by the International Bureau for the month in

question.

3 The debtor designated operator shall make payment for the

amount billed within the six-week period provided for in article

35-004.10.

Article 31-107

Calculation of the rates of terminal dues for countries

applying articles 30.5 to 13 and 31.5 to 9 of the Convention

1 The charges referred to in article 30.5 of the Convention

shall be in force on 1 June of the year preceding the calendar

year to which the terminal dues rates apply. They shall be

notified to the International Bureau by the same date and in

compliance with the conditions provided for in article

31-108.

2 On the basis of these charges, expressed in local currency,

the International Bureau shall annually convert the values

notified, expressed in SDR, into a rate per item and a rate per

kilogramme, in accordance with paragraphs 3 and 4. To calculate

the rates in SDR the International Bureau shall use the average

monthly exchange rate of the five-month period ending 31 March of

the year preceding the terminal dues reference year. The

resultant rates shall be notified by circular no later than 1

July.

3 A rate per item and a rate per kilogramme shall be

determined by linear interpolation between the reference charges

for the 20-gramme letter-post item and the 175-gramme letter-post

item specified in article 30.5 of the Convention, at the weights

of 10 grammes and 175 grammes, respectively. These rates per item

and per kilogramme shall be changed to a rate per item and rate

per kilogramme with an item-to- kilogramme ratio of 12.8% at 91.9

grammes. On the basis of these rates, the terminal dues revenue

for an item of 37.6 grammes and an item of 375 grammes shall be

calculated.

4 The terminal dues rate per item and rate per kilogramme for

small (P) and for large (G) letter-post items shall be determined

following the steps below:

4.1 Calculate the floor terminal dues revenue for an item of

37.6 grammes, using the minimum rates provided for in articles 30

and 31 of the UPU Convention;

4.2 Calculate the cap terminal dues revenue for an item of

37.6 grammes, using the maximum rates provided for in articles 30

and 31 of the UPU Convention for the group of countries to which

the country concerned belongs;

4.3 Compare the terminal dues revenue obtained in 3 with the

values in 4.1 and 4.2, and:

4.3.1 if this value is below the value in 4.1, the applicable

rates per item and per kilogramme shall be the minimum rates

provided for in articles 30 and 31 of the UPU Convention;

4.3.2 if this value is between the value in 4.1 and 4.2,

multiply the minimum rates per item and per kilo- gramme by the

ratio: revenue in 3 divided by revenue in 4.1. The resulting

rates shall be rounded to three decimal places;

4.3.3 if this value is above the value in 4.2, use the maximum

rates per item and per kilogramme provided for in articles 30 and

31 of the UPU Convention for the group of countries to which the

country concerned belongs.

5 The terminal dues rate per item and rate per kilogramme for

bulky (E) and small packet (E) letter- post items shall be

determined following the steps below:

5.1 Calculate the floor terminal dues revenue for an item of

375 grammes, using the minimum rates provided for in articles 30

and 31 of the UPU Convention;

5.2 Calculate the cap terminal dues revenue for an item of 375

grammes, using the maximum rates provided for in articles 30 and

31 of the UPU Convention for the group of countries to which the

country concerned belongs;

5.3 Compare the terminal dues revenue obtained in 3 with the

values in 5.1 and 5.2, and:

5.3.1 if this value is below the value in 5.1, the applicable

rates per item and per kilogramme shall be the minimum rates

provided for in articles 30 and 31 of the UPU Convention;

5.3.2 if this value is between the value in 5.1 and 5.2,

multiply the minimum rates per item and per kilogramme by the

ratio: revenue in 3 divided by revenue in 5.1. The resulting

rates shall be rounded to three decimal places;

5.3.3 if this value is above the value in 5.2, use the maximum

rates per item and per kilogramme provided for in articles 30 and

31 of the UPU Convention for the group of countries to which the

country concerned belongs.

6 The terminal dues rates calculated in accordance with

paragraphs 4 and 5 shall be proportionally adjusted so that they

do not exceed the maximum revenue increases specified in articles

30.7 and 31.3 of the Convention concerning the terminal dues

revenue for an item of 37.6 grammes for small (P) and for large

(G) letter-post items and for an item of 375 grammes for bulky

(E) and small packet (E) letter-post items, compared with the

previous year.

7 If no charge has been communicated to the International

Bureau by 1 June, the charges used for the calculation for the

previous year for the designated operator concerned shall apply.

If the calculation is made for the first time for the designated

operator concerned, the rates provided for in article 30.10 and

11 of the Convention shall apply.

8 Notwithstanding the provisions set out under 2 and 6, the

International Bureau must be informed of any reduction in the

charge in the domestic service referred to in article 30.5 of the

Convention by the designated operator concerned.

9 The new rates calculated on the basis of this article shall

come into effect on 1 January and remain in force for the entire

calendar year. In cases of charges queried by other countries or

reported by the International Bureau in accordance with article

31-108.6 and 7, the calculated rates shall be regarded as

provisional, until the Postal Operations Council decides as

provided for in article 31-108.8.

Article 31-108

Conditions applying to the notification of the reference

charges for the calculation of terminal dues rates

1 The domestic charges provided in article 30.5 of the

Convention for the calculation of terminal dues rates (reference

charges) shall correspond to domestic items equivalent to the

basic services defined in article 17 of the Convention.

2 Article 17-105 defines the specifications with respect to

formats, dimensions and weight of items with which the reference

charges shall conform.

3 In terms of speed of treatment, the reference charges shall

correspond to items equivalent to those defined in article

17-101.2.1 as priority items.

4 The designated operators of countries in the target system

shall notify to the International Bureau by 1 June the charges in

force on 1 June of the year preceding the calendar year to which

the terminal dues rates apply.

5 In cases where the items to which the notified charges

correspond are not compliant with the requirements set out in

article 30.5 of the UPU Convention and in paragraphs 1 to 3

above, the Postal Operations Council shall decide, on the basis

of a report by the International Bureau, on the appropriate

reference charge to be used for the calculation of terminal dues.

The following rules shall apply:

5.1 In cases where, in the domestic service, the

classification of items by format does not apply, the charges of

items not classified by format, corresponding to the weights and

dimensions provided for in article 17-105, shall be applied.

5.2 In cases where the specifications of the items, as defined

in 17-105, do not apply in the domestic service of a specific

country, the charge corresponding to the item with specifications

nearest to the reference item shall apply, the format followed by

the weight being the determinant criteria.

5.3 In cases where the conditions in paragraphs 1 to 3 are met

by more than one item, the lowest charge shall apply.

6 Any member country or designated operator applying article

30 of the Convention may query the use of a charge by another

member country or its designated operator for the calculation of

terminal dues rates within the UPU. The query should be submitted

to the International Bureau at least six weeks before the next

Postal Operations Council starting date, and be made available

with the result of the technical evaluation to Postal Operations

Council members and the member country or designated operator

whose charge is the subject of the query, at least two weeks

before the starting date.

7 The International Bureau shall report to the Postal

Operations Council any cases where the notified reference charges

have been contested or do not appear to be compatible with

article 30 of the Convention and with this article.

8 The Postal Operations Council shall decide on the cases in

paragraphs 6 and 7 at its next meeting following notification, on

the basis of a technical evaluation by the International Bureau,

whether the notified reference charges are compatible with

article 30 of the Convention and with this article.

9 In accordance with article 29.7 of the Convention, any

initial self-declared rates beginning with effect from 1 July

2020 shall be furnished to the International Bureau no later than

1 March 2020, and the resultant initial rates shall thereafter be

published by the International Bureau by 1 April 2020. For the

initial rates set on 1 July 2020, the International Bureau shall

use the average monthly exchange rate of the period from 1 August

2019 to 31 December 2019.

Article 31-109

Quality of service-linked terminal dues remuneration

1 Terminal dues remuneration shall be based on quality of

service performance of the designated operators of the country of

destination.

2 Participation in a UPU-agreed system, compliant with the UPU

GMS Technical Design, for quality of service measurement of the

inward flow in the country or territory of destination, for the

link between terminal dues and quality of service, is voluntary.

If the designated operator of a country or territory of origin

does not participate in the measurement of the inward flow, it

shall pay to the designated operator of the country or territory

of destination participating in the measurement quality of

service adjusted terminal dues, but not less than 100% of the

base terminal dues rates (terminal dues rates without any

incentive or adjustment for quality of service performance). If a

designated operator of a country or territory of destination does

not put in place a UPU-agreed system for quality-of-service

measurement of the inward flow compliant with the UPU GMS

Technical Design, it shall receive 100% of the base terminal dues

rates.

3 Notwithstanding the provisions set out under 1 and 2,

designated operators which have a total annual inward mail volume

below 100 tonnes and which do not participate in a UPU-agreed

system for quality of service measurement of inward flows shall

receive from, and pay to, all the other designated operators 100%

of the base terminal dues rate. This provision shall not apply to

designated operators in the target system prior to 2010.

4 For the application of paragraph 3, designated operators

concerned shall notify to the International Bureau by 1 June of

each year the total inward mail volumes of the previous calendar

year. On the basis of their notifications, the International

Bureau shall publish by 1 July the list of designated operators

applying the provisions in paragraph 3 for the following year. In

the absence of notification, the provisions in paragraph 2 shall

apply.

5 Designated operators participating in a UPU-agreed quality

of service measurement system, com- pliant with the UPU GMS

Technical Design, for the link between terminal dues and quality

of service shall, as an incentive, receive a terminal dues

increase of 5% for their whole inward letter mail flow.

6 Designated operators shall be subject to a penalty if the

quality targets fixed have not been met. This penalty shall be

1/3% of the terminal dues remuneration for each percent under the

performance target. The penalty shall in no case exceed 10%.

Owing to the 5% incentive for participation, the maximum penalty

shall not lead to remuneration lower than 95% of the base

terminal dues rates.

7 Notwithstanding the provisions set out under 6, where

terminal dues rates are determined in accordance with articles 30

and 31 of the Convention (i.e. they are not self-declared

pursuant to article 29 of the Convention), the application of

penalties in cases where the quality targets have not been met

shall not result in remuneration that is lower than the minimum

rates provided in articles 30.10, 30.11, 31.5, 31.8 and

31.9 of the Convention.

8 Provisional quality of service-linked terminal dues rates

shall be calculated by the International Bureau and notified by

circular no later than 1 July of each year. The provisional rates

shall come into effect on 1 January of the following year and

shall remain in force for the entire calendar year. The

provisional terminal dues rates shall be calculated in accordance

with article 31-107 but shall, in addition, include an incentive

and an adjustment based on the quality of service results of the

previous calendar year.

9 Final quality of service-linked terminal dues rates shall be

calculated by the International Bureau following the publication

of the final quality of service results relating to the calendar

year in question. The final quality of service-linked terminal

dues rates shall be notified by International Bureau circular no

later than 1 May of the year following the calendar year in

question and shall replace the provisional terminal dues rates

previously issued for that calendar year.

10 The Postal Operations Council shall fix the annual quality

of service standards and targets in accordance with the

provisions in article 31-110.

Article 31-110

Principles for setting or revising quality of service

standards and targets for the quality of service-linked terminal

dues remuneration

1 For the purpose of the quality of service-linked terminal

dues remuneration, the annual quality of service standards and

targets shall be set by the Postal Operations Council based on

standards and targets applicable in the domestic service with

respect to comparable items and conditions.

2 The Postal Operations Council shall also decide on requests

from designated operators to change their standards and targets

due to changes to their domestic standards or targets. The

revised standards or targets approved by the Postal Operations

Council shall enter into force from the latter of the date of the

implementation of such changes in the domestic services and the

date of the receipt by the International Bureau of the change

request from the designated operators concerned.

3 These standards and targets shall not be less favourable

than those established for the inward letter- post items pursuant

to article 14 of the UPU Convention.

4 Subject to the provisions in paragraph 3, the standards

shall be set in compliance with the following principles:

4.1 The applicable standard shall correspond to the standard

of the domestic service whose charges are used for calculating

terminal dues. In cases where the terminal dues rates are not

based on domestic charges the standard shall correspond to the

domestic standard for the priority letter service. The domestic

standards shall be verifiable by being published on the website

of the designated operator concerned, printed in its general

conditions or confirmed in writing by its regulator.

4.2 In the absence of domestic standards, the applicable

standard shall be established taking into account the ability of

the designated operator concerned to achieve a minimum level of

performance, defined by the Postal Operations Council.

4.3 The standards shall in principle have a critical tag time

(CTT) no earlier than 15.00.

5 Subject to the provisions in paragraph 3, the targets shall

be fixed in compliance with the following principles:

5.1 The target shall be set at the highest of the domestic

target set by the regulator and the most recent annual

performance of the designated operator concerned within a

UPU-agreed measurement system, rounded down to the nearest full

percentage, subject to a minimum target of 75% and a maxi- mum

target of 88%.

5.2 In the absence of annual performance results as in

paragraph 5.1, the applicable target shall be the domestic target

set by the regulator, subject to the minimum and the maximum

targets above.

5.3 In the absence of a domestic target set by the regulator

and of annual performance results as in paragraph 5.1, the

initial target shall be set at the minimum target.

5.4 In principle, the target for a year shall not be set at a

lower level than the target of the previous year.

5.5 At the request of the designated operator, the target may

exceed the maximum target in 5.1.

Article 31-111

Quality of service-linked terminal dues remuneration.

Reporting and validation

1 Reporting

1.1 For the purpose of the quality of service performance

results referred to in articles 31-109 and 31- 110, reports shall

be produced and communicated on a monthly basis to the designated

operators participating in a UPU-agreed quality of service

measurement system, compliant with the UPU GMS Technical Design,

no later than 30 days after the end of the month being reported

upon.

1.2 The full calendar year quality of service results shall be

produced and communicated to the designated operators

participating in a UPU-agreed quality of service measurement

system, compliant with the UPU GMS Technical Design, no later

than 15 February of the year following the calendar year in

question.

1.3 All queries submitted to the International Bureau

concerning the measurement and calculation of quality of service

results shall be submitted no later than 30 days after the date

of notification of monthly or annual results. If no request for

review is made within that period, the results shall be regarded

as having been accepted.

1.4 The final annual quality of service results shall be

notified by International Bureau circular no later than 1 April

of the year following the calendar year in question.

2 Queries concerning quality measurement

2.1 Designated operators participating in a UPU-agreed quality

of service measurement system may ask the measurement system

provider to review inconsistencies with regard to specific test

items. If the query cannot be mutually resolved between the

designated operator and its measurement system provider, then the

designated operator may submit a request to the International

Bureau in accordance with the review request procedures in

2.2.

2.2 The Postal Operations Council shall establish relevant

request review procedures and, as necessary, decide on such

reviews in accordance with these procedures.

Article 31-112

Mechanism for revising the rates of terminal dues

1 A designated operator sending or receiving flows of more

than the flow threshold specified in article 31-117 (excluding M

bags) may ask the corresponding designated operator for the

application of the revision mechanism described below for

determining the new rate of terminal dues suited to their

traffic. This request may be made subject to the following

conditions:

1.1 when a designated operator in the target system

establishes that the average number of items per kilogramme (IPK)

received from a designated operator in the transition system is

higher than 12;

1.2 when a designated operator in the transition system

establishes that the average number of items per kilogramme sent

to another designated operator is lower than 7;

1.2.1 if the designated operator in the transition system

requests the application of the revision mechanism under 1.2 for

a flow to a designated operator in the target system, the latter

can request the application of the mechanism also in the opposite

direction when the other conditions for downward revision are

fulfilled;

1.3 when a designated operator in the transition system

establishes that the average number of items per kilogramme

received from another designated operator is higher than 12;

1.4 when a designated operator requests the application of the

revision mechanism for a flow, the corresponding designated

operator may do likewise, independently of the flow size when the

other conditions for upward or downward revision are

fulfilled.

2 The revision mechanism shall consist in carrying out a

special statistical count to calculate the average number of

items per kilogramme, in accordance with the procedures set out

in articles 31-119 and 35-006.

3 The designated operator intending to apply the revision

mechanism shall so notify the corresponding designated operator

at least five months in advance.

4 The request shall be supported by statistical data showing

that the average number of items per kilogramme of the flow

concerned deviates from the world average. These statistical data

shall be obtained from a sampling of the flow concerned over the

second quarter of a calendar year. The flow may be sampled using

continuous sampling or 12 observation days spread as uniformly as

possible over the period.

5 While respecting the time limit provided for under 3, the

statistical period shall commence at the beginning of a calendar

year.

6 The new terminal dues rate for the traffic in question shall

be calculated in SDR as follows: rate per kilogramme = (Average

number of items per kilogramme x rate per item provided for in

article 31.5 to 31.8) + rate per kilogramme provided for in

article 31.5 to 31.8. The average number of items per kilogramme

is taken from the sampling under 4.

7 In cases where the average number of items per kilogramme

falls between 7 and 12, the rate provided for in article 31.9 of

the Convention shall apply to the traffic in question for the

following calendar year. For the calendar year for which the

average number of items falls between 7 and 12, the average

number of items per kilogramme from the sampling shall be used

for calculating the terminal dues rate. In addition, sampling for

items per kilogramme shall cease if the average number of items

per kilogramme from the sampling performed under 4 falls between

7 and 12 for the whole calendar year, until such time as the

conditions for sampling have been satisfied and sampling has been

reactivated.

Article 31-113

Request for payment specific to bulk mail

1 The designated operator of destination shall be authorized

to request the application of the payment specific to bulk mail

when it establishes:

1.1 the receipt, in the same mail, or in one day when several

mails are made up per day, of 1,500 or more items posted by the

same sender;

1.2 the receipt, in a period of two weeks, of 5,000 or more

items posted by the same sender;

1.3 in the case of items received from countries (designated

operators) with terminal dues accounting and billing on the basis

of a rate per kilogramme only, the receipt, in a period of four

weeks, of mails whose total weight is composed of at least 90% of

bulky (E) or small packet (E) letter-post items.

2 The designated operator of destination that wishes to apply

the payment specific to bulk mail shall notify the designated

operator of origin within two weeks of its receipt of the first

instance of bulk mail. This notification shall be sent by fax or

electronic means to the special address provided for in article

35-001.2 and it shall contain the dispatch number, date of

dispatch, origin office of exchange, destination office of

exchange and a photocopy of a sample of the mail pieces in

question.

2.1 Except for the cases provided for under 3 and 4, specific

payment shall not come into force until three months from the

receipt of such notification from the designated operator of

destination. Such specific payment shall only apply to bulk mails

dispatched after the expiry of the three month notification

period.

2.2 Receipt of bulk mails under 2.1 shall be established by

the designated operator of destination in accordance with the

provisions of article 17-137.6.

3 Notwithstanding the provisions under 2.1, the designated

operator of destination shall be authorized to apply with

immediate effect the payment specific to bulk mail when it

establishes:

3.1 the receipt, in the same mail, or in one day when several

mails are made up per day, of 3,000 or more items posted by the

same sender;

3.2 the receipt, in a period of two weeks, of 10,000 or more

items posted by the same sender;

3.3 in the case of items received from countries with terminal

dues accounting and billing on the basis of a rate per kilogramme

only, the receipt, in a period of four weeks, of mails whose

total weight is composed of at least 90% of bulky (E) or small

packet (E) letter-post items and which represents a 50% increase

in the total weight of such mail received in the same four weeks

the year before.

4 The designated operator of destination that wishes to apply

the payment specific to bulk mail with immediate effect

shall:

4.1 if based on provision 3.1 or 3.2, notify the designated

operator of origin within three working days of the receipt of

the bulk mail. This notification shall be in the form of a

verification note specifying the dispatch number, date of

dispatch, origin office of exchange, destination office of

exchange and a photocopy of a sample of the mail pieces in

question, sent by fax or electronic means to the special address

provided for in article 35-001.2;

4.2 if based on provision 3.3, notify the sending designated

operator that it will check, for a period of four weeks, the

composition of the mail, to determine the percentage of total

weight of bulky (E) or small packet (E) letter-post items. After

this period, if the conditions in 3.3 are met, the bulk mail

rates can be charged, provided that the total weight of such mail

received has increased by more than 50% compared to the same four

weeks the year before.

5 Once the designated operator of destination has requested

the application of the specific payment for bulk mail, within

three months the designated operator of origin may request the

application of the specific payment to all bulk mail it

dispatches to that designated operator, unless the original

request by the designated operator of destination is

withdrawn.

6 Termination of specific payment for bulk mail invoked under

5 must be notified by the designated operator of origin three

months in advance of termination or be decided by mutual

consent.

7 Notwithstanding the rules provided under 1 to 6, bulk mail

provisions shall not be used in the target system between

designated operators within the same terminal dues remuneration

group when statistical counts for exchanges of mail are used for

accounting.

Article 31-114

Closed mails exchanged with military units

1 It shall be the responsibility of the designated operators

of countries to which military units, warships or military

aircraft belong to settle direct with the designated operators

concerned the transit charges and terminal dues arising from the

mails sent by those military units, ships or aircraft.

2 If these mails are redirected, the redirecting designated

operator shall report the fact to the designated operator of the

country to which the military unit, ship or aircraft belongs.

Article 31-115

General principles for statistical sampling and estimation of

the number of items per kilogramme

1 The following principles shall apply to all types of mail

flow sampling that are required for the pur- poses of payment of

terminal dues based on per item and per kilogramme charges (e.g.

sampling related to the revision mechanism, exchanges between

designated operators in the target system).

1.1 Both sampling and estimation of the average number of

items per kilogramme shall reflect the com- position of the mail.

As the composition of the mail varies with transportation mode,

format, container type, time of year (month), and day of week,

the sample of the mail shall reflect these variations and

resemble, as closely as is practical, the entire mail flow.

Likewise, the method of estimation shall also reflect these

variations.

1.2 The statistical sampling program shall be designed to

achieve a target statistical precision of ± 5% with 95%

confidence and on estimate of IPK of the average number of items

per kilogramme and of the number of items exchanged between

designated operators.

1.2.1 This target statistical precision defines a goal that

all designated operators which conduct sampling should attempt to

achieve through their designs. It does not define a minimum

precision requirement.

1.3 The design of the sampling programme, the selection of the

samples, the method of collecting data and the estimation process

shall conform to generally accepted principles of mathematical

statistics, probability sampling theory, and design of

statistical surveys.

1.4 Within the constraints of these principles, each

designated operator has sufficient flexibility to adapt the

design of its sampling programme to the attributes of its mail

flow and its resource constraints. However, each designated

operator must notify the corresponding designated operator of its

design decisions, including estimation approach, in advance of

the observation period.

Article 31-116

Statistical counts for exchanges of mail between designated

operators of countries in the target system

1 For exchanges of mail between designated operators of

countries in the target system prior to 2010, a statistical count

shall be carried out. However, to avoid sampling costs for small

exchanges between designated operators of countries in the target

system prior to 2010, the average number of items per kilogramme

between designated operators of countries in the target system

shall be applied for mail flows below a certain threshold, if

both designated operators concerned so agree. The POC shall fix

the threshold and the average number of items per kilogramme to

be applied.

2 For flows above 50 tonnes a year between countries that

joined the target system in 2010, 2012 and 2016, as well as

between these countries and countries that were in the target

system prior to 2010, a statistical count shall be carried out.

Below this threshold, statistical counts shall be carried out

only if both designated operators concerned so agree. These

designated operators may also agree to apply the average number

of items per kilogramme between designated operators of countries

in the target system for mail flows below a certain threshold.

The POC shall fix the threshold and the average number of items

per kilogramme to be applied. The size of a flow shall be based

on the last four approved consecutive quarters.

3 The POC shall also fix the thresholds and the average number

of items per kilogramme to be applied in case of mails separated

into two formats (S and E), and in case of mails separated into

three formats (P, G and E).

4 The statistical count shall conform to the principles set

forth in article 31-115. If designated operators exchange letter

trays and flat trays, the estimates of items per kilogramme (IPK)

by modes of transportation and quarter shall reflect the

composition of the mail by container type and format. Except as

otherwise provided below in paragraph 4.1, the statistical count

shall be carried out by means of continuous sampling, in which a

systematic or randomized sample of receptacles is

computer-selected for testing throughout the observation period.

The designated operators concerned shall agree on the statistical

forms to be used.

4.1 For the years up to and including 2019, the statistical

count may be carried out employing 48 days of observation per

year of sampling with four days per month. Within an observation

day, designated operators may employ subsampling, if it is not

feasible to conduct a complete count of all the mail received

during the day concerned. The receiving designated operator shall

not be required to notify the dispatching designated operator in

advance as to the observation days or mail receptacles that are

chosen to be sampled.

5 Estimation of the annual number of items

5.1 The annual number of items shall be the weighted average

of the numbers of items computed separately for each

transportation mode and quarter. It shall be computed as

follows:

5.1.1 The average number of items per kilogramme obtained by

sampling a given transportation mode over a given quarter shall

be multiplied by the total weight of mail for that transportation

mode and quarter, the aim being to estimate the total number of

items for that transportation mode and quarter.

5.1.2 The estimates of the total number of items per

transportation mode and quarter shall be added together to

calculate the estimated annual number of items.

6 Each designated operator must notify the corresponding

designated operator of its sampling pro- gramme design decisions,

including estimation approach, at least three months in advance

of the observation period.

7 Where the sampling of items per kilogramme has not been

performed or the results have not been made known within five

months after the end of the fourth quarter, the other designated

operator shall have the right to submit its own sampling results

for the missing data. The statistical sampling and estimation

shall conform to the principles set forth in article 31-115,

except that a target precision of ± 7.5%, instead of ± 5%, shall

apply. If no data are available, the lower of the last agreed

average number of items per kilogramme or the average number of

items per kilogramme agreed for target member country flows shall

be used.

8 Registered letter-post items designated by dispatch mail

subclass code UR and tracked letter-post items designated by

dispatch mail subclass code UX shall be excluded from statistical

sampling. The statistical values shall instead be based on the

actual counts of registered and tracked items recorded on forms

CN 31, CN 33, CN 55 and CN 56.

9 When sampling has been carried out in accordance with the

thresholds in paragraph 2, the results from the sampling shall be

used for settling the accounts.

Article 31-117

Statistical counts for exchanges in the transition system

1 The sampling shall reflect the composition of the mail, and

shall conform to the principles set forth in article 31-115.

2 As provided for in article 31.10 of the Convention, for mail

flows above 100 tonnes a statistical count may be carried out to

revise the terminal dues rates, other than those applicable to

bulky (E) and small packet

(E) letter-post items that have been self-declared pursuant to

article 29, on the basis of the actual number of items per

kilogramme as determined in accordance with the provisions of

articles 31-112 and 31-119. The revision mechanism shall not

apply in case of mail flows below 100 tonnes, in which case the

relevant per- item and per-kilogramme components shall be

converted into a total rate per kilogramme on the basis of the

worldwide average composition of one kilogramme of mail, as

referred to in article 30.14.

3 Sampling of mail flows referred to in articles 29.1.5, 31.12

and 13 of the Convention shall apply the same provisions in

relation to sampling of mail flows in the target system, which

are provided in paragraphs 2 to 9 of article 31-116 and in

article 31-118.

Article 31-118

Alternative approach for statistical counts for exchanges of

mail between designated operators of countries applying target

system procedures

1 For those exchanges between designated operators of

countries in the target system or for those exchanges referred to

in paragraph 3 of article 31-117.3 where letter trays and/or flat

tubs are exchanged, designated operators may take steps to

develop estimates of items based upon receptacle type. The

statistical count shall conform to the principles set forth in

article 31-115.

1.1 It is recommended that designated operators may instead

employ continuous sampling, in which a systematic or randomized

sample of receptacles is computer selected for testing throughout

the observation period. The designated operators concerned shall

agree on the statistical forms to be used.

1.2 Where continuous sampling is not performed, observation

days shall be spread as uniformly as possible over the working

days of the week (with only the working days for the office of

exchange concerned taken into consideration), and shall reflect

modes of transportation used for the entire mail flow. The

statistical count shall consist of at least 48 days of

observation per year of sampling with four days per month. Within

an observation day, designated operators may employ subsampling,

if it is not feasible to conduct a complete count of all the mail

received during the day concerned.

2 Estimation of the annual number of items

2.1 The annual number of items shall be the weighted average

of the numbers of items computed separately for each receptacle

type and transportation mode. It shall be computed as

follows:

2.1.1 The average number of items per kilogramme obtained by

sampling a given receptacle type and transportation mode, shall

be multiplied by the total weight of mail for that receptacle

type and transportation mode, the aim being to estimate the total

number of items for that receptacle type and transportation

mode.

2.1.2 The estimates of the total number of items per

receptacle type and transportation mode shall be added together

to calculate the estimated annual number of items.

3 Designated operators shall indicate the weight of mail sent

by receptacle type (e.g. weight in letter trays, weight in flat

tubs, weight in bags, etc.) on duly modified forms, and provide

receptacle information by electronic data interchange (EDI), if

possible.

4 Each designated operator must notify the corresponding

designated operator of its sampling pro- gramme design decisions,

including estimation approach, at least two months in advance of

the observation period. Nevertheless, the receiving designated

operator shall not be required to notify the dispatching

designated operator in advance as to the observation days or mail

receptacles that are chosen to be sampled.

5 Where the sampling of items per kilogramme has not been