China delays plan to register express carriers

China’s State Postal Bureau has again deferred the implementation of plans to regulate international express carriers and freight forwarders doing business in China.

The Chinese have moved the June 15 deadline for express carriers and forwarders to apply for so-called “entrustment certificates” ahead another 60 days. The controversial regulations were originally due to take effect May 6.

The deferment also affects plans to give the Chinese postal service a monopoly over all documents weighing up to 500 grams (17.6 ounces). Foreign express carriers such as FedEx Corp., United Parcel Service , DHL Worldwide and TNT have vehemently protested the planned regulations. U.S. Commerce Secretary Donald Evans raised the issue with the Chinese when he visited Beijing in late April. Organizations such as the U.S.-China Business Council and the Council of Asia Pacific Express Carriers have also expressed objections to senior Chinese government officials.

But in a sign that the Chinese are not ready to abandon the plan, the postal service asked the Chinese International Forwarders Association to solicit comments from its members on draft legislation that would give it a monopoly on documents up to 500 grams. Comments were due Monday.

UPS spokesman John Flick noted that the 500-gram limit is unusually high. In the European Union, for example, the current ceiling is 300 grams, but the EU is revising the postal law to reduce the monopoly for state postal authorities to 100 grams by next year and 50 grams by 2006.

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