Need for reforming Post Office Act to legalise courier service
Saturday, 21 March 2009
Md. Mostaque Hassan
GOVERNMENT delivers postal services for the citizen through Post Office. This Post office was established by enacting a law called 'Post office Act 1898'. The Postal Act is more than a century year old law. With the evolution of time, vast changes happened in socio-economic activities in the global arena and that is also reflected to Bangladesh. Although information communication technology (ICT) and technological revolution has been taken place in the postal services of the developed countries but Bangladesh is lagging behind. That is why; our post office department is not able to deliver global standard services either in domestic or in overseas countries. Due to the old style services of the post office, customers are not being satisfied to this department. Post Office Act 1898 authorised the Post Office to deliver this service in a monopolistic nature in all over Bangladesh.
Introduction of Courier Service in Bangladesh: Under Post Office Act 1898, there was no provision or even no government rule/regulation to operate Courier Service in Bangladesh. General booking, to pay booking, value declared booking etc., were undertaken through Air Express Service of Biman under a 'Cargo Regulation' of the government. Air Express Service of Biman was closed down in October 30, 1983. Following the procedures of the cargo regulation of Air Express Service, some courier services started the similar types of operations of 'to pay booking, general and Value Declared booking (VD booking) like Air Express Service of Biman. Due to increasing demand of the community, gradually this service is being expanded all urban areas including some upazilas of Bangladesh. Now courier service has become essential and necessary for the citizens of Bangladesh. Till today there are no rules and regulations for operating courier services in Bangladesh.
Considering the increasing demand for the courier service and in pursuant of the demands of the Courier Service Association of Bangladesh (CSAB), National Board of Revenue (NBR) gave them a SO-28 Code through issuing a SRO-17 in 2000 to operate this business. In 2004, another SRO (SRO # 173) was issued fixing 15% VAT on its services. In 2007 another SRO (SRO # 130) was also issued and enlisted courier services as a 'service provider' and reduced VAT rate of its income from 15% to 4.5%.
Initiatives of amending section 4(1) and 58 of the Post Office Act, 1898:
(1) Presently, Courier Service Providers have been delivering a number of services in Bangladesh in different categories like-dispatch general/ valuable documents, deliver special services, remittance collection, parcel booking, and tie-up with international Courier for handling documents to, and from, overseas countries and so on. The couriers offer services mainly in urban areas as urban areas are potential for courier business. Most of the couriers don't have rural coverage as number of customers is very few. In some special cases, some big courier service providers deliver documents in rural areas but charges higher fees for those transmissions. Couriers don't operate business where they don't make profit; because they have to maintain office, pay staff salary and, above all, make profit as they invest money and time in this profession. The courier services employed more than 1, 00,000 people in this sector. Although this service is necessary and essential in the present reality but they don't have legal coverage.
On the other hand, the government has no regulatory role to monitor their services. That is why; Courier Service Association of Bangladesh (CSAB) and the customers have been demanding to the government to bring this sector under legal framework. It will help government to look after the affairs of courier service operators, monitor the quality of services, ensure transparency and accountability of their operation, fixing appropriate fees and so on.
(2) The issue of courier service was brought to the notice of the Regulatory Reforms Commission (RRC). Regulatory Reforms Commission analysed the matter in the meeting. As the services of the courier is widely accepted all over Bangladesh and as it already has got SO code and paying VAT/ tax as per Government instruction and employing more than 1,00,000 people, so it is rational to bring them under a legal framework and facilitate them to improve their services.
(3). The Regulatory Reforms Commission (RRC) took a decision and requested government to reform the Post Office Act, 1898 by amending section 4 (1) and 58. The RRC further suggested the government to make provision in the Act to formulate 'rules' to operate 'Courier Service' in Bangladesh. This rule would help government to monitor activities of courier service and protect customers' interest. In addition, courier service operators would also have access to different facilities of the government. Thus, this will allow courier service providers to operate their businesses in a legal way.
2. Background: Why reform is needed: The Post Office Act, 1898 is the legal basis for the Postal Department to deliver postal services in Bangladesh. Postal Department has the nation-wide service coverage. It is a very cheap and affordable for all classes of people of the country. The services of the Post Office are slow and primitive in nature. They don't satisfy the need of a progressive society. Everybody knows that the world has been changing rapidly and expectations of the stakeholders have also been increased on getting quick service delivery. But the postal services have lagged behind. Courier service-providers deliver documents as per desire of the customers through a quick and efficient delivery. This makes the sector trustworthy to the stakeholders. That is why; customers run after 'courier service' to get efficient and quick delivery of documents, although it is costly. That is why the number of courier has been increased over the last few decades due to increasing demand of this service. At the same time, the number of employment is also being increased and that exceeds 1, 00,000 since its inception in 1983.
Having no regulatory body or rules to fix fees to carry documents, they have been charging fees with the decision of their association and that is slightly higher. Couriers have been doing their business by taking SO code from the NBR and trade license from the city corporation/municipality. It is quite usual that without having legal bindings, customers' interest might not be ensured and also might not have transparency and accountability of their services. In absence of a regulatory body, they are not been penalised if are involved in unethical or illegal activities. Without reform of section 4(1) and 58 of Post Office Act 1898, courier services can not be brought under a legal framework or regulated.
Importance in the context of Business: Couriers are business development service-oriented delivery sector. More than 100 courier service providers have been doing their business in this sector and employing a huge number of people. At the same time, this sector has been facing a number of barriers and obstacles to operating their business as it lacks legal coverage. The government has no regulatory authority to monitor this sector, their services are not legally approved, and they don't have access to government facilities, and have no insurance coverage of goods and documents against damage and so on. So, they are sufferers in all spheres of government incentives and facilitates. Thus, in business perspective; it is highly important and thrust area of business sector. So, the government has to come up with positive actions for its promotion and expansion.
Stakeholders Analysis: Analysis of Service Providers:
(1) Post Office: According to the Universal Postal Union convention (UPU convention) Post Office has the obligation to provide quality services to each and every corner of the country. Accordingly; Bangladesh Post Office delivers service to every people of the country in rural and urban areas. Bangladesh post office ensures its transparency and accountability in delivering services through citizens' charter. All issues of handling procedures, commitment to customers, service quality, specifications of services, process handling, complain procedures are well defined in such a charter. The complainer gets remedy from Post Office within three weeks to one month.
(2) Courier Service: Courier service providers are the private postal service operators. They have been delivering a number of services in Bangladesh in different categories like-dispatch general/valuable documents, deliver special services, remittance collection, parcel booking, and tie-up with international courier for handling documents to, and from, overseas countries and so on. Although this service is necessary and essential under the present-day reality, but they don't have legal coverage and the government has no regulatory role on this services
Analysis of Service Receivers: (1) Usually established business sectors, private sectors, advanced society, bank, financial institutions, corporate bodies, advantageous sections of the community etc., are the beneficiaries of the courier service. It charges higher fees in carrying and delivering documents. On the other hand, government-owned Postal Service is low cost and convenient for the poor community and public sectors. So, the poor customers are still having trust on Post Office.
(2) Different research organisation, Non governmental organisations, professional groups, and civil societies are also the customers of the courier service. As per their views of the stakeholders, couriers and Post Office deliver their services in a different manner. They feel that the services of the Post Office are being improved due to improved service delivery of the couriers. They have positive feelings on couriers as their customers are satisfied for their quick/ time bound and efficient service delivery. Customers feel that courier services are to be regulated by the government; otherwise, citizens might be cheated.
(3) Foreign transmissions and remittances are mostly undertaken by the international couriers through making tie with domestic couriers. As per views of the customers, remittance transfer through courier is efficient and trust worthy. Beneficiaries stated that, Post Office has limited scope to employ people. On the other hand, courier services have wide scope to employ people.
Risks Analysis: Post Office Act, 1898, doesn't allow transmitting of any injurious, indecent and anything specified in Post Office Guide and Government declared through gazette notification. Post Office has the delegated power to intercept any postal articles suspecting contents any contraband item and to detain the same. As a result, Post Office can ensure that no contraband item is transmitted by Post Office.
On the other hand, the Post Office officials opined that courier services sometimes carried such suspicious and contraband items. There is no well specified system for courier service to check documents/articles before transmission. Courier service providers mentioned that now they check articles after series bomb blast in 64 districts in 2005. The CSAB demanded to the government to formulate rules to bring them in legal structure and declare it as service industry. They added that if they have access to finance, access to free import of scanners/equipments/vehicles; they would able to check and identify contraband and explosive items and further improve their service delivery.
Recommendations: (1) After the close down of Air Express Service of Biman on October 30, 1983, some potential private entrepreneurs started courier service as a business profession. But these services of the couriers are to be given legal backup as this sector has been contributing to the economy. Thus the section 4(1) and 58 of the Post Office Act, 1898 is to be amended.
(2) Couriers and couriers services are to be defined. Categorises of services, finalisation of service jurisdiction, fixation of fees, maintenance of safety and security etc., are to be mentioned in the definition. Those who deliver single service like parcel, are also to be brought under the rules and be allowed to do business.
(3) It is observed that distrust and mistrust exists between couriers and Post Office. Initiatives are to be taken to reduce those gaps and allow them to complement each other in delivering services.
(4) Courier service Association of Bangladesh (CSAB) mentioned that due to their good initiatives and better service delivery; the services of the Post Office have been improved. That is why, Post Office still has a large number of customers. That is why the courier service is to be promoted to upgrade Postal Services.
(5) Before formulating 'Rules', the Authority should share views and ideas with Post Office, government sectors, couriers and 'Courier Service Association of Bangladesh' so that the 'Rules' would be user friendly and make courier service as an efficient sector.
(6) Opinions can be taken from DHL and Federal Express as they have international exposure and working in domestic and international arena. A meeting could be held with the chamber bodies like FBCCI, DCCI, MCCI and some business associations and their suggestions would be reflected in the Rules, to be formulated for courier service.
(7) Courier Service employs more than 1, 00,000 people and deposit a huge amount of money to the Government exchequer as VAT/Tax. So, Government has to come up with positive approach for promoting this sector to have more revenue in Government exchequer.
(8) Usually courier service charges higher fees than that of the Post Office. That is why the demand of the ordinary postage is not reduced. For the interest of post office, minimum fees for courier service can be introduced. But fixing maximum fees under the proposed rules might put courier service in a difficult situation to run their business. Because, fees are to be charged depending on price, importance of document and how frequently documents are to be delivered and so on.
(9) If commission or rebate for single or bulk booking is fixed and disclosed earlier then the business secrecy and techniques would also be disclosed. In that case, business environment would be totally damaged and most of the couriers would bound to close their business. So, this provision in the draft rules has to be removed.
(10) To promote courier service, access to finance, tax-free import of scanners/vehicle/ equipments and other facilities are to be given to this sector. Then the couriers will be in a position to scan documents and identify explosive and contraband articles and their service delivery would further improved.
(11) Courier service is to be reformed in such a way that it could undertake financial and remittance-related activities, so that money laundering activities would be reduced and government would get more revenues.
(12) Before reforming Post Office Act, an exposure visit can be arranged with the representatives of CSAB, Post Office, Ministry Post & Telecom, RRC and other relevant bodies to Asian & advanced countries.
(13) The Couriers Association feels that a licensing authority is essential for courier service but that could not be the Post Office. Because Post Office is also delivering the similar type of services like couriers, so a co-service provider (Post Office) can't be a regulatory authority of the other providers. The regulatory and licensing authority of the courier service would be BTRC or a similar type of organisation or the Ministry of Post & Telecommunication.
(14) Express Indian Council of India (Indian Courier Service) is not under the Indian Postal Department but under other independent authority. Bangladesh can adopt this instance and form an independent regulatory body to regulate courier services.
(15) In proposed five-member Regulatory Authority of Courier Service, if three members were taken from the Post Office, one from the Ministry of Post & Telecom and one from the courier service, this wouldn't serve the purpose of this initiative. To make the authority effective and functional, the number of private sector/couriers representatives have to be increased. Courier Service Association of Bangladesh(CSAB) has suggested an 11-member Regulatory Authority as on the following structure:
(1) Secretary, Ministry of Post and Telecommunication
- Chairperson;
(2) DG, Department of Post
- Member;
(3) Two representatives from FBCCI -Member;
(4) Five representatives from registered Courier Service Association -Member;
(5) One representative from Ministry of Finance -Member; and
(6) 01 Representative from Ministry of Law -Member
If the regulatory authority is to be formed following this structure, it is expected that it would play a strong role in promoting both the Post Office and the courier service.
Conclusion: Post Office Department is a government owned organisation. It has been delivering postal services in a monopolistic nature. Courier service is highly essential and accepted by the cross section of people of Bangladesh. As per Post Office Act, 1898, no private operator is allowed to deliver postal services. Any body doing so is penalised Tk. 500 for carrying each letter. Under this act, couriers are not allowed to operate business. That is why they have been delivering letters in the name of document.
Courier services employ more than 1, 00,000 people and deposit a large amount of money to the government exchequer in the form of VAT/Tax. That is why, government should pay attention to this sector and their issues have to be considered while formulating rules. There is a great hope that the government has accepted the recommendation of Regulatory Reforms Commission and planned to amend the Post Office Act, 1898. The government has to come up with positive actions to reform the relevant sections of the Post Office Act and formulate 'rules' for operating courier service.
The Courier Service Association of Bangladesh (CSAB) has many grievances against such draft rules as there were not formulated through sharing views with concerned stakeholders. They have claimed that before enacting the 'rules', the authority needs to sit with the stakeholders and after formulation a draft rules, the same should be well circulated in the website, daily newspapers, Radio, TV etc. But that initiative has not yet been taken. It is expected that the government would prepare an action plan to reform post office act to legalise courier service.
The writer is Director (Deputy Secretary), Regulatory Reforms Commission
GOVERNMENT delivers postal services for the citizen through Post Office. This Post office was established by enacting a law called 'Post office Act 1898'. The Postal Act is more than a century year old law. With the evolution of time, vast changes happened in socio-economic activities in the global arena and that is also reflected to Bangladesh. Although information communication technology (ICT) and technological revolution has been taken place in the postal services of the developed countries but Bangladesh is lagging behind. That is why; our post office department is not able to deliver global standard services either in domestic or in overseas countries. Due to the old style services of the post office, customers are not being satisfied to this department. Post Office Act 1898 authorised the Post Office to deliver this service in a monopolistic nature in all over Bangladesh.
Introduction of Courier Service in Bangladesh: Under Post Office Act 1898, there was no provision or even no government rule/regulation to operate Courier Service in Bangladesh. General booking, to pay booking, value declared booking etc., were undertaken through Air Express Service of Biman under a 'Cargo Regulation' of the government. Air Express Service of Biman was closed down in October 30, 1983. Following the procedures of the cargo regulation of Air Express Service, some courier services started the similar types of operations of 'to pay booking, general and Value Declared booking (VD booking) like Air Express Service of Biman. Due to increasing demand of the community, gradually this service is being expanded all urban areas including some upazilas of Bangladesh. Now courier service has become essential and necessary for the citizens of Bangladesh. Till today there are no rules and regulations for operating courier services in Bangladesh.
Considering the increasing demand for the courier service and in pursuant of the demands of the Courier Service Association of Bangladesh (CSAB), National Board of Revenue (NBR) gave them a SO-28 Code through issuing a SRO-17 in 2000 to operate this business. In 2004, another SRO (SRO # 173) was issued fixing 15% VAT on its services. In 2007 another SRO (SRO # 130) was also issued and enlisted courier services as a 'service provider' and reduced VAT rate of its income from 15% to 4.5%.
Initiatives of amending section 4(1) and 58 of the Post Office Act, 1898:
(1) Presently, Courier Service Providers have been delivering a number of services in Bangladesh in different categories like-dispatch general/ valuable documents, deliver special services, remittance collection, parcel booking, and tie-up with international Courier for handling documents to, and from, overseas countries and so on. The couriers offer services mainly in urban areas as urban areas are potential for courier business. Most of the couriers don't have rural coverage as number of customers is very few. In some special cases, some big courier service providers deliver documents in rural areas but charges higher fees for those transmissions. Couriers don't operate business where they don't make profit; because they have to maintain office, pay staff salary and, above all, make profit as they invest money and time in this profession. The courier services employed more than 1, 00,000 people in this sector. Although this service is necessary and essential in the present reality but they don't have legal coverage.
On the other hand, the government has no regulatory role to monitor their services. That is why; Courier Service Association of Bangladesh (CSAB) and the customers have been demanding to the government to bring this sector under legal framework. It will help government to look after the affairs of courier service operators, monitor the quality of services, ensure transparency and accountability of their operation, fixing appropriate fees and so on.
(2) The issue of courier service was brought to the notice of the Regulatory Reforms Commission (RRC). Regulatory Reforms Commission analysed the matter in the meeting. As the services of the courier is widely accepted all over Bangladesh and as it already has got SO code and paying VAT/ tax as per Government instruction and employing more than 1,00,000 people, so it is rational to bring them under a legal framework and facilitate them to improve their services.
(3). The Regulatory Reforms Commission (RRC) took a decision and requested government to reform the Post Office Act, 1898 by amending section 4 (1) and 58. The RRC further suggested the government to make provision in the Act to formulate 'rules' to operate 'Courier Service' in Bangladesh. This rule would help government to monitor activities of courier service and protect customers' interest. In addition, courier service operators would also have access to different facilities of the government. Thus, this will allow courier service providers to operate their businesses in a legal way.
2. Background: Why reform is needed: The Post Office Act, 1898 is the legal basis for the Postal Department to deliver postal services in Bangladesh. Postal Department has the nation-wide service coverage. It is a very cheap and affordable for all classes of people of the country. The services of the Post Office are slow and primitive in nature. They don't satisfy the need of a progressive society. Everybody knows that the world has been changing rapidly and expectations of the stakeholders have also been increased on getting quick service delivery. But the postal services have lagged behind. Courier service-providers deliver documents as per desire of the customers through a quick and efficient delivery. This makes the sector trustworthy to the stakeholders. That is why; customers run after 'courier service' to get efficient and quick delivery of documents, although it is costly. That is why the number of courier has been increased over the last few decades due to increasing demand of this service. At the same time, the number of employment is also being increased and that exceeds 1, 00,000 since its inception in 1983.
Having no regulatory body or rules to fix fees to carry documents, they have been charging fees with the decision of their association and that is slightly higher. Couriers have been doing their business by taking SO code from the NBR and trade license from the city corporation/municipality. It is quite usual that without having legal bindings, customers' interest might not be ensured and also might not have transparency and accountability of their services. In absence of a regulatory body, they are not been penalised if are involved in unethical or illegal activities. Without reform of section 4(1) and 58 of Post Office Act 1898, courier services can not be brought under a legal framework or regulated.
Importance in the context of Business: Couriers are business development service-oriented delivery sector. More than 100 courier service providers have been doing their business in this sector and employing a huge number of people. At the same time, this sector has been facing a number of barriers and obstacles to operating their business as it lacks legal coverage. The government has no regulatory authority to monitor this sector, their services are not legally approved, and they don't have access to government facilities, and have no insurance coverage of goods and documents against damage and so on. So, they are sufferers in all spheres of government incentives and facilitates. Thus, in business perspective; it is highly important and thrust area of business sector. So, the government has to come up with positive actions for its promotion and expansion.
Stakeholders Analysis: Analysis of Service Providers:
(1) Post Office: According to the Universal Postal Union convention (UPU convention) Post Office has the obligation to provide quality services to each and every corner of the country. Accordingly; Bangladesh Post Office delivers service to every people of the country in rural and urban areas. Bangladesh post office ensures its transparency and accountability in delivering services through citizens' charter. All issues of handling procedures, commitment to customers, service quality, specifications of services, process handling, complain procedures are well defined in such a charter. The complainer gets remedy from Post Office within three weeks to one month.
(2) Courier Service: Courier service providers are the private postal service operators. They have been delivering a number of services in Bangladesh in different categories like-dispatch general/valuable documents, deliver special services, remittance collection, parcel booking, and tie-up with international courier for handling documents to, and from, overseas countries and so on. Although this service is necessary and essential under the present-day reality, but they don't have legal coverage and the government has no regulatory role on this services
Analysis of Service Receivers: (1) Usually established business sectors, private sectors, advanced society, bank, financial institutions, corporate bodies, advantageous sections of the community etc., are the beneficiaries of the courier service. It charges higher fees in carrying and delivering documents. On the other hand, government-owned Postal Service is low cost and convenient for the poor community and public sectors. So, the poor customers are still having trust on Post Office.
(2) Different research organisation, Non governmental organisations, professional groups, and civil societies are also the customers of the courier service. As per their views of the stakeholders, couriers and Post Office deliver their services in a different manner. They feel that the services of the Post Office are being improved due to improved service delivery of the couriers. They have positive feelings on couriers as their customers are satisfied for their quick/ time bound and efficient service delivery. Customers feel that courier services are to be regulated by the government; otherwise, citizens might be cheated.
(3) Foreign transmissions and remittances are mostly undertaken by the international couriers through making tie with domestic couriers. As per views of the customers, remittance transfer through courier is efficient and trust worthy. Beneficiaries stated that, Post Office has limited scope to employ people. On the other hand, courier services have wide scope to employ people.
Risks Analysis: Post Office Act, 1898, doesn't allow transmitting of any injurious, indecent and anything specified in Post Office Guide and Government declared through gazette notification. Post Office has the delegated power to intercept any postal articles suspecting contents any contraband item and to detain the same. As a result, Post Office can ensure that no contraband item is transmitted by Post Office.
On the other hand, the Post Office officials opined that courier services sometimes carried such suspicious and contraband items. There is no well specified system for courier service to check documents/articles before transmission. Courier service providers mentioned that now they check articles after series bomb blast in 64 districts in 2005. The CSAB demanded to the government to formulate rules to bring them in legal structure and declare it as service industry. They added that if they have access to finance, access to free import of scanners/equipments/vehicles; they would able to check and identify contraband and explosive items and further improve their service delivery.
Recommendations: (1) After the close down of Air Express Service of Biman on October 30, 1983, some potential private entrepreneurs started courier service as a business profession. But these services of the couriers are to be given legal backup as this sector has been contributing to the economy. Thus the section 4(1) and 58 of the Post Office Act, 1898 is to be amended.
(2) Couriers and couriers services are to be defined. Categorises of services, finalisation of service jurisdiction, fixation of fees, maintenance of safety and security etc., are to be mentioned in the definition. Those who deliver single service like parcel, are also to be brought under the rules and be allowed to do business.
(3) It is observed that distrust and mistrust exists between couriers and Post Office. Initiatives are to be taken to reduce those gaps and allow them to complement each other in delivering services.
(4) Courier service Association of Bangladesh (CSAB) mentioned that due to their good initiatives and better service delivery; the services of the Post Office have been improved. That is why, Post Office still has a large number of customers. That is why the courier service is to be promoted to upgrade Postal Services.
(5) Before formulating 'Rules', the Authority should share views and ideas with Post Office, government sectors, couriers and 'Courier Service Association of Bangladesh' so that the 'Rules' would be user friendly and make courier service as an efficient sector.
(6) Opinions can be taken from DHL and Federal Express as they have international exposure and working in domestic and international arena. A meeting could be held with the chamber bodies like FBCCI, DCCI, MCCI and some business associations and their suggestions would be reflected in the Rules, to be formulated for courier service.
(7) Courier Service employs more than 1, 00,000 people and deposit a huge amount of money to the Government exchequer as VAT/Tax. So, Government has to come up with positive approach for promoting this sector to have more revenue in Government exchequer.
(8) Usually courier service charges higher fees than that of the Post Office. That is why the demand of the ordinary postage is not reduced. For the interest of post office, minimum fees for courier service can be introduced. But fixing maximum fees under the proposed rules might put courier service in a difficult situation to run their business. Because, fees are to be charged depending on price, importance of document and how frequently documents are to be delivered and so on.
(9) If commission or rebate for single or bulk booking is fixed and disclosed earlier then the business secrecy and techniques would also be disclosed. In that case, business environment would be totally damaged and most of the couriers would bound to close their business. So, this provision in the draft rules has to be removed.
(10) To promote courier service, access to finance, tax-free import of scanners/vehicle/ equipments and other facilities are to be given to this sector. Then the couriers will be in a position to scan documents and identify explosive and contraband articles and their service delivery would further improved.
(11) Courier service is to be reformed in such a way that it could undertake financial and remittance-related activities, so that money laundering activities would be reduced and government would get more revenues.
(12) Before reforming Post Office Act, an exposure visit can be arranged with the representatives of CSAB, Post Office, Ministry Post & Telecom, RRC and other relevant bodies to Asian & advanced countries.
(13) The Couriers Association feels that a licensing authority is essential for courier service but that could not be the Post Office. Because Post Office is also delivering the similar type of services like couriers, so a co-service provider (Post Office) can't be a regulatory authority of the other providers. The regulatory and licensing authority of the courier service would be BTRC or a similar type of organisation or the Ministry of Post & Telecommunication.
(14) Express Indian Council of India (Indian Courier Service) is not under the Indian Postal Department but under other independent authority. Bangladesh can adopt this instance and form an independent regulatory body to regulate courier services.
(15) In proposed five-member Regulatory Authority of Courier Service, if three members were taken from the Post Office, one from the Ministry of Post & Telecom and one from the courier service, this wouldn't serve the purpose of this initiative. To make the authority effective and functional, the number of private sector/couriers representatives have to be increased. Courier Service Association of Bangladesh(CSAB) has suggested an 11-member Regulatory Authority as on the following structure:
(1) Secretary, Ministry of Post and Telecommunication
- Chairperson;
(2) DG, Department of Post
- Member;
(3) Two representatives from FBCCI -Member;
(4) Five representatives from registered Courier Service Association -Member;
(5) One representative from Ministry of Finance -Member; and
(6) 01 Representative from Ministry of Law -Member
If the regulatory authority is to be formed following this structure, it is expected that it would play a strong role in promoting both the Post Office and the courier service.
Conclusion: Post Office Department is a government owned organisation. It has been delivering postal services in a monopolistic nature. Courier service is highly essential and accepted by the cross section of people of Bangladesh. As per Post Office Act, 1898, no private operator is allowed to deliver postal services. Any body doing so is penalised Tk. 500 for carrying each letter. Under this act, couriers are not allowed to operate business. That is why they have been delivering letters in the name of document.
Courier services employ more than 1, 00,000 people and deposit a large amount of money to the government exchequer in the form of VAT/Tax. That is why, government should pay attention to this sector and their issues have to be considered while formulating rules. There is a great hope that the government has accepted the recommendation of Regulatory Reforms Commission and planned to amend the Post Office Act, 1898. The government has to come up with positive actions to reform the relevant sections of the Post Office Act and formulate 'rules' for operating courier service.
The Courier Service Association of Bangladesh (CSAB) has many grievances against such draft rules as there were not formulated through sharing views with concerned stakeholders. They have claimed that before enacting the 'rules', the authority needs to sit with the stakeholders and after formulation a draft rules, the same should be well circulated in the website, daily newspapers, Radio, TV etc. But that initiative has not yet been taken. It is expected that the government would prepare an action plan to reform post office act to legalise courier service.
The writer is Director (Deputy Secretary), Regulatory Reforms Commission