Strict requirement for delivery service set

Written by Writer on Friday, October 24th, 2008

Strict requirement for delivery service set

(Xinhua)
Updated: 2008-10-24 06:34

BEIJING — China’s top legislature on Thursday began reviewing a draft amendment to the post law, in which strict requirements were set for market entry of express delivery.

The draft, which also adds articles on authorizing agencies to check mail for security reasons, was handed over by the State Council, China’s Cabinet, to the 5th Session of the 11th National People’s Congress (NPC) Standing Committee.

Under the amendment, foreign companies are banned from providing delivery service of domestic mails out of security concerns.

The draft, which puts forward stringent threshold for newcomers, requires intra-provincial express delivery companies to have at least half a million yuan (UD$73,100) in registered capital, and the fees for inter-provincial and international businesses amount to 1 million and 2 million yuan respectively.

It also requires the applicants to have full capacity to handle safety issues during service and asks management personnel to be free of criminal penalty for at least for three years before recruitment.

Newcomers should obtain a licence and approval from post service authorities if they have to run international business, the draft stated.

State and public security bureaus and agencies were entitled to check, keep mail and deliveries when investigating crimes, it read, adding courier services were obliged to offer client information if security bureaus found it necessary.

No individual is allowed to spread information that may threaten national security in mail and deliveries, it notes.

The draft urges post bureaus at both the national and provincial levels to tighten monitoring and management measures over post service in a just, fair and transparent manner.

Local government should take measures to ensure and support a baseline level of postal service, it says.

The draft has also given more power to post companies to decide delivery fees based on market demand and underlined the legal accountability of those who violated post service regulations and rules.