UPU: The postal EU internal market – update

𝗨𝗣𝗗𝗔𝗧𝗘: PostNord Denmark has informed us that they corrected their PPC entry on 3 November (after our editorial deadline): please note that PostNord Denmark only charges fees for dutiable parcels. We thank PostNord Denmark for this update and have adapted our map accordingly.
𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝗺𝘂𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗿𝗲𝘁𝘂𝗿𝗻 𝗼𝗳 𝘂𝗻𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗮𝗯𝗹𝗲 𝗹𝗲𝘁𝘁𝗲𝗿-𝗽𝗼𝘀𝘁 𝗶𝘁𝗲𝗺𝘀 𝗮𝘀 𝗼𝗳 𝟭 𝗝𝗮𝗻𝘂𝗮𝗿𝘆, 𝟮𝟬𝟮𝟮: 𝗯𝗿𝗶𝗻𝗴𝗶𝗻𝗴 𝗳𝘂𝗿𝘁𝗵𝗲𝗿 𝗱𝗲𝗰𝗹𝗶𝗻𝗲 𝗶𝗻 𝘃𝗼𝗹𝘂𝗺𝗲𝘀 𝗼𝗳 𝗰𝗿𝗼𝘀𝘀-𝗯𝗼𝗿𝗱𝗲𝗿 𝗽𝗼𝘀𝘁𝗮𝗹 𝗶𝘁𝗲𝗺𝘀 (𝗨𝗣𝗨) 𝘁𝗼 𝘁𝗵𝗲 𝗘𝗨?
𝗧𝗵𝗲 𝗨𝗣𝗨 / 𝗽𝗼𝘀𝘁𝗮𝗹 𝗰𝗵𝗮𝗻𝗻𝗲𝗹 𝗵𝗮𝘀 𝗯𝗲𝗰𝗼𝗺𝗲 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁𝗹𝘆 𝗹𝗲𝘀𝘀 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗱𝘂𝗲 𝘁𝗼 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝘁𝗲𝗿𝗺𝗶𝗻𝗮𝗹 𝗱𝘂𝗲 𝗿𝗮𝘁𝗲𝘀 𝗮𝗻𝗱 𝗵𝗶𝗴𝗵 𝗰𝘂𝘀𝘁𝗼𝗺𝘀 𝗰𝗹𝗲𝗮𝗿𝗮𝗻𝗰𝗲 𝗰𝗵𝗮𝗿𝗴𝗲𝘀.
#UPU rates (terminal dues, item/kilo basis) have risen several times in recent years as tariffs, especially for lightweight commercial letter post items, were too cheap. However, the #EU #VAT #Ecommercepackage and new Import-One-Stop-Shop (#IOSS) VAT model have resulted in a highly inhomogeneous EU supplementary charges regime.
The UPU’s “good old postal channel”, in which the post at origin handed #postalitems over to the post at destination for #customsclearance & #delivery, has become significantly less competitive and relevant. It is being replaced by #commercialsolutions, and individual and #multilateralagreements between #postaloperators.
𝗡𝗲𝘄 𝘀𝘂𝗽𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝗿𝘆 𝗨𝗣𝗨 𝗰𝗵𝗮𝗿𝗴𝗲: 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝟭 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟮, 𝗰𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝗺𝘂𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗿𝗲𝘁𝘂𝗿𝗻 𝗼𝗳 𝘂𝗻𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗮𝗯𝗹𝗲 𝗹𝗲𝘁𝘁𝗲𝗿-𝗽𝗼𝘀𝘁 𝗶𝘁𝗲𝗺𝘀
At its constituent meeting at the 27th UPU Congress, the UPU Postal Operations Council approved the addition of a new article 30-122 to the UPU Convention manual, allowing the collection of remuneration for the return of undeliverable letter-post items. The new #fee will be 0,907 SDR (1.11 EUR) per kilo, plus an additional rate based on distance and mode of transport.
Although similar fees are charged by most carriers in the commercial sector, the UPU fees differ significantly in two respects:
– A kilo rate is very unusual and unlikely to reflect the actual cost. Much of the cost of returns is per piece, not per weight.
– Commercial letter-post items, in most cases Low Value Consignments, are rarely sent back to the country of origin, for reasons of cost. Instead, most are stored or destroyed.
All EU Member States, except AT, NL, and LV, have notified the UPU that they wish to collect these fees starting 1 January 2022. Outside the EU, all major #ecommerce countries (e.g., UK, US, JP, RU, but with the exception of CN) will also start to collect these fees.
Click here for the LinkedIn-Article.

Walter Trezek
Document Exchange Network GmbH