Consultation - Royal Mail's International Signed For service

[TrueBlueTerrier]

http://www.psc.gov.uk/consultations/liv ... nsultation" onclick="window.open(this.href);return false;

23 November 2010

Postcomm is today consulting on a modification to Royal Mail’s licence to clarify that Royal Mail’s International Signed For Packet (ISF) service is a universal service product when sold with single piece Airmail and Surface Mail products.

We are consulting on this modification to Royal Mail’s licence for 28 days. Responses should be submitted by Tuesday December 21, 2010. The Notice of licence modifications is attached as Annex A to the explanatory paper.

Background

The Postal Services Directive requires that Member States include cross border products in the universal service. Postcomm’s 2004 decision on the definition of the universal service determined that Royal Mail’s single piece International Signed For service should be included in the universal service. However, this decision was not reflected in Royal Mail’s licence.

The Government is in the process of enacting legislation that will change the VAT status of certain of Royal Mail’s products. As drafted, this means that unless the ISF service is formally included as a service that Royal Mail is obliged to provide in its licence, both the ISF service itself and the underlying international service that it is purchased alongside will become subject to VAT.

Related document:

23 November 2010 - Licence modification proposal - paper and consultation

Royal Mail's International Signed For service: Licence modification proposal - explanatory paper and statutory consultation (pdf)