Impact tool of options A, B and C on E-format remuneration

The International Bureau has developed an impact tool for UPU member countries to assess the possible financial impacts of options A, B and C.

The impact tool for option A allows users to identify the final rates of bulky (E) and small packet (E) letter-post items based on the domestic rates for 20-gramme (P) and 175-gramme (G) items used in the target terminal dues system. The increase in terminal dues rates compared to the current 2019 rates is provided in order to better understand the impacts.

For option B, the impact tool uses the domestic rates at 11 weight steps collected from 110 designated operators through the last tariff survey. The item and kilogramme rates of each of these designated operators have been calculated on the basis of the business rules associated with this option. The impact tool for option B calculates the country-specific maximum possible rates, also called “ceiling rates”. As the optional self-declared rates are confidential and, therefore, unavailable, the sending DO will not be able to determine the impacts on its outbound flows, other than those calculated based on the maximum possible rates (ceiling rates) the destination DO would be allowed to set for E-format items.

Option C is the convergence option between A and B, with harmonization of cap rates throughout groups I and IV in 2020 (as in option A) and, from 2021, the ability for UPU member countries, on an optional basis, to set self-declared rates below their ceiling rate, further subject to maximum revenue annual increases (transition). For option C, the impact tool uses the domestic rates at 11 weight steps collected from 110 designated operators through the last tariff survey, and applies a cost-to-tariff ratio of 70%. The item and kilogramme rates of each of these designated operators have been calculated on the basis of the business rules associated with this option. The impact tool for option C calculates the country-specific final rates in 2020 based on the current system methodology and the country-specific maximum rates from 2021. In option C, rates could be self-declared by the country of destination below the lesser of the ceiling rates and the maximum revenue annual increases.

 

Impact tool (V1 of the 2018–2021 cycle)

Impact tool (options A, B and C)

Version 09.09.2019.

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