Tuesday, November 29, 2011

Outsourcing collection of Speed Post and Other Premium Service - Clarification regarding.

No. 02-17/ 96-BD & MD
Government of India
Ministry of Communications & IT
Department of Posts
Business Devolepment & Marketing Directorate
5th Floor, Dak Bhavan, New Delhi - 110001

17th November, 2011


Subject: Outsourcing collection of Speed Post and Other Premium Service - Clarification regarding.

1. A reference has been received in Business Devolepment & Marketing Directorate from PMG, Gorakhpur Region, Gorakhpur, related tp the practice of claiming commission on Speed Post articles collected from authorised license holders of franking machines by the Speed Post Outsourcing Agents under "Outsourcing Collection of Speed Post and Other Premium Services Scheme". A clarification is sought for whether such commission is admissible or not.

2. The issue has been examined in consultation with PO Division of the Directorate. The instructions on the subject applicable in this regard are as under: -

 (a) The "Outsourcing Collection of Speed Post and Other Premium Services Scheme"  was notified vide BD Directorate communication No. 2/ 17/ 96/ BD dated November 23,  1998. Para 7 b of this communcation provides: -

  "In respect of all the collections from the retail customers in cash/stamps/  franks, the collection agent will be paid agency commission of 2%(as given in para 5.3), on daily basis".

 (b) The instruction for licensing and use of Franking Machines as ameneded along with  summary of changes made was notified vide PO Division communication No. 41-13/ 95- PO dated 08.04.1996.

  (i) Para 5 under "Instructions for use of Franking Machine of this communication   provides: -

  "the franked articles shall normally be accepted in one post office of the status of   LSG or above as specified by the licensee which will be the designated office.   However, in the case of genuine difficulty to the individual licensee, he may be  allowed to post his mails in a second office, which should be a sorting office or mail   office. Commercial licensees will be allowed to post their articles in on Post Office, Mail   Office or Bulk Mail Centre only".

  (ii) Para 6(b) of this communication provides: -

  "A commercial licensee can frank the mails of his client(s). In such a case, the  licensee should send such franked articles to the Post Office/ RMS office with a   certificate with each consignment mentioning the name of the client, number of  articles, value franked and total value and certifying that they are bonafide  transactions carried on by the licensee on the behalf of the client(s).

3. In view of above, the issue raised in Para 1 above is clarified as under: -

 (a) Licensee of franking machine, either individual or commercial (as defined in PO  Division communication referred to in para 2) is not allowed to route their franked articles  through Speed Post Outsourcing Agents to their designated office of posting.

 (b) Speed Post Outsourcing Agent is not allowed to bring frank mail generated by  Franking  Machine of an individual or commercial licensee to Post office and claim  commission under  Speed Post Outsourcing Agent Scheme.

 (c) In an individual or commercial Franking Machine License holder is also a Speed Post  Outsourcing Agent, he/ she cannot act as a Speed Post Outsourcing Agent in respect of  mail generated from his/ her franking machine.

 (d) The word 'frank' mentioned in BD Directorate letter No. 2/ 17/ 96/ BD dated  November 23, 1998 refers to a manner of prepayment of postage. 'Frank' in this context  implies those frank impressions that are obtained from a Post office as proof of  prepayment of postage due in lieu of postage stamps.

4. This issues with the approval of the competent authority.
(C Karuppasamy)
Asstt. Director (BD & MD)

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