Canada Post sets new rules for mailing goods: Foreign destinations

What’s the difference between putting a letter and a
CD in a mailbox? If you’re Canada Post, as much as a few dollars.

The Crown corporation wants to stop customers from mailing CDs,
T-shirts and other “non-paper” items to the United States and other
foreign destinations in envelopes that are meant only for paper.

It has developed a new “light-packet” system designed exclusively
for non-paper goods and is expected to announce details of the new
system today.

Changes will take effect on Aug. 21.

But Canada Post backed down from preliminary plans to hike rates
when the new system takes effect after an outcry from small
businesses and Canada’s large eBay community, which relies heavily
on shipping.

Critics of the plan accused Canada Post of a cash grab by forcing
customers to use “light-packet” service to ship non-paper goods and
charge a premium compared with letter post service, which many
currently use to ship small non-paper goods.

In the wake of that criticism, Canada Post decided to set prices
for the new system at the same level as the existing letter post
service many use.

“We’ve always taken into consideration all their comments, and this
is one of the comments we’ve received, and many others,” Canada Post
spokesman Francois Legault said. “Obviously we have taken them into
consideration.”

News of a possible rate increase even prompted the Liberal Crown
corporations critic to call for the abolition of Canada Post to stop
its monopoly over mail service. “As long as you provided an
efficient and cost-effective mail service which was regulated, where
any price increase has to be justified, then I don’t see the
argument for exclusive monopoly,” John McKay said.

The light-packet service will require customers to sign a customs
declaration, but will be priced the same as the current letter post
service, Ms. Legault said.

“If you’re sending goods, there’s a requirement that you fill in
appropriate customs documentation,” he said.

Originally, prices for the light packet service would have been as
much as 44% higher than regular letter post service to the United
States and other foreign destinations, according to Mr. McKay. If
those changes had taken effect, it would have cost $2.55 to send a
package, compared with the 89 cents it currently costs to send items
by letter post.

Meanwhile, many eBay sellers in Canada are discouraged and plan to
close their stores when the new changes take effect. Canada Post
said light-packet service prices are scheduled to go up in January.
When combined with increases in eBay service fees, it’s too much for
some business owners, such as Danielle Dimovski in Barrie, who claim
the price hike by Canada Post has put them out of business.

“It’s just a cash grab,” said Ms. Dimovski, who said she’ll close
her online business when the changes take place. “They want
e-commerce in Canada to continue — you have to have the tools to do
it, but they are not providing us with any breaks.”

Canada Post consultations about the light-packet service in recent
months sparked an outcry from people whose livelihoods depend on
shipping and who say prices are already too high.

“The rates for Canada Post already exceed U.S. Post charges for a
similar service. In fact, I can ship a small box to Florida for less
than I can to Ontario. This puts Canadian sellers at a
disadvantage,” Ralph Schweitzer, an eBay seller based in BritishColumbia, said in an e-mail.