Postal Rulings: Discount structure_1-

13 Dec 2025

No. 71-14/2022-CF-DOP

Government of India

Ministry of Communications Department of Posts

IR & GB Division

Dak Bhawan, New Delhi-110001

Date: 3rd September 2024

Office Memorandum

Subject: Revision of Discount structure for International Express Mail Service (EMS)/ Speed Post & International Tracked Packets Service (ITPS).

Department of Posts has reviewed the existing discount structure on International Express Mail Service (EMS) / Speed Post and ITPS in view of the market requirements and to promote market share of the Department in cross-border shipments. The new discount structure is framed to benefit exporters, especially small exporters, and those using Dak Ghar Niryat Kendras for commercial export. The new discount structure for International EMS & ITPS has been approved by the competent authority. The discount structure for contractual customers for international EMS an ITPS (Column A of tables below) shall come into effect from 1st September 2024. The additional discount of 1% for EMS and 2% for ITPS for booking on DNK portal (column B of tables below) shall be effective from the date of implementation of the technical changes in the system which shall be intimated separately. This OM would supersede all instructions/orders issued earlier on the subject from time to time and will be in force until further orders.

2. Volume Discount

(1) The competent authority has approved the following discount structure on International Express Mail Service (EMS) / Speed Post & International Tracked Packet Service:

EMS:

Monthly revenue

(In INR) excluding

taxes

Discount for contractual (including bulk) customer in percentage

Additional discount for DNK portal booking for both contractual (over and above discount for contractual customer (A)) and non-contractual

customer

(A)

Up to 25000

25001-100000

100001-500000

500001-2000000

10%

2000001-5000000

13%

5000001 & above

16%

(B)

ITPS:

for

inl

Additior.al discount for DNK portal booking for both contractual (over and above discount for contractual customer (A)) and non-contractual

customer

Monthly Revenue (In Discount INR) excluding taxes contractual

(including

bulk)

customer

percentage

(B)

(A)

Up to 25000

25001 to 100000

100001 to 200000

200001 to 500000

500001 to 2000000

12%

2000001 to 4000000

14%

4000001 to 7500000

16%

7500001& above

18%

3. Eligibility for Discount structure:

ii.

iii.

iv.

vi.

customer

for

The customer has the option to enrol as Advance Payment or Book Now Pay Later (BNPL)

international accountable mail products (EMS /Parcel/Registered/ITPS). However, discount facility is available only for EMS and ITPS services as provided in para 2 above.

To claim the above-mentioned discount, customer has to provide booking data in soft copy, while manual filling of postal bill of export. The discount shall be half of the above-mentioned rate, if data is not given in soft copy.

All articles booked through the DNK portal are eligible for discount as the data provided by the exporter is in soft copy.

Any claim of the customer shall not be adjusted against advance payment/ Dues of BNPL.

A customer who enters into agreement with the Department of Posts may be referred as 'contractual customer', whereas, the customer providing minimum monthly business of Rs. 50,000/- (at single location) or more than Rs. 2,00,000 (at multiple locations) from all accountable international mail products combined may be referred as 'bulk customer'. The customer who enters into a contract with the Department and also provide business of more than Rs. 50,000/- per month (at single location) or more than Rs 2,00,000 (at multiple locations) would be referred as 'contractual bulk customer'. The definition of 'contractual bulk customer' is further provided in para 4(1).

Free Pick up - A contractual bulk customer is eligible for free pick-up facility i.e. a contractual customer providing minimum monthly business of Rs 50,000/- (at single location) or Rs 2,00,000 (at multiple location), exclusive of applicable taxes, from

vii.

viii.

accountable international mail products (EMS/Air Parcel/ Registered Letter Post/ ITPS).

The contractual customer may register with any International Business Centre / Dak Ghar Niryat Kendra, designated by the competent authority, irrespective of its office / residential address. In such cases, the residential / office address shall be verified through concerned postal division.

The contractual international EMS/speed post & ITPS customers who are booking their articles from multiple locations shall be allowed consolidation of accounts under National Account facility at all booking locations for calculation of discount and billing and payment at the nodal office.

4. Operational guidelines:

(1) The 'contractual bulk customer' in respect of international mail will be the customer who tenders postage revenue of more than Rs. 50,000 (Rs. Fifty Thousand) for all accountable international mail products put together (EMS, ITPS, Registered and Parcel), exclusive of applicable taxes, in a calendar month at a single booking office or more than Rs. 2,00,000 (Rs. Two Lakh) monthly, exclusive of applicable taxes, in case booking at multiple locations.

Service

International EMS / speed post / ITPS /Regd /Parcel

Minimum expected monthly revenue for Rs.25,000/- (Rs. Fifty Thousand only) excluding eligibility as contractual customer at single taxes from all international accountable mail location.

Based on business requirement/ competition, CPMGS/PMGs are empowered to revise limit on case-to-case basis in consultation with IFA.

Minimum expected monthly revenue for Rs 2,00,000/- (Rs. Two Lakh Only) excluding eligibility as contractual customer in case taxes

of booking at multiple locations.

Minimum monthly revenue for eligibility of Rs. 50,000/- (Rs Fifty Thousand only) excluding free pick up

Place of booking

taxes from all international accountable maill (EMS, ITPS, International Air Parcel and Regd) at single location for both single and multiple location contractual bulk customers. Based on business requirement/ competition, CPMGS/PMGs are empowered to revise limit on case-to-case basis in consultation with IFA. At the offices identified by approving authority in consultation with customer

Minimum revenue for volume discount for Rs. NAF

Modes of Payment

2,00,000/- (Rs. Two lakh above excluding taxes

Credit or/and Advance Deposit

only) and

Approving authority of facility/National Account Facility

Approving authority of advance payment at the time of booking

Security deposit for credit facility

Signing Authority

credit Postmaster General for all cases falling under

his/her region.

Chief Postmaster General for all other cases (where unit is controlled by HOC) or the locations related to other Circles (NAF). deposit/Divisional head if customer opts for single

booking location.

In case of multiple locations -

a. PMG may approve, if booking locations

are multiple and in different divisions within the region.

b. CPMG for all other cases (where unit is controlled by HOC) or the locations related to other Circles (NAF).

Equal to anticipated postage amount for three billing cycles. Competent authority will review on quarterly basis.

Designated authority - Divisional Head

(2) The customer has to apply to the designated authority in the format prescribed at Annexure- 'A' for registering as a contractual customer with Department of Posts to avail international mail services.

(3) The contractual customers who opt to avail credit facility or advance payment facility or payment at the time of booking will have to enter into an agreement with the Department in the format prescribed at Annexure-'B'.

(4) The designated authority after entering into agreement with the applicant will send a copy of the signed agreement for information of the approving authority. The office of 'Approving Authority' would maintain the record of disposal of all such cases received along with copies of agreement entered into by the designated authority.

(5) The various value additions like Pick Up, Credit/ Advance Deposit facility, Volume discount etc. will be provided to contractual customers subject to the following conditions:

(i) Pick up:

•

Free pick up will be limited either to municipal area to which the booking centre belongs or within a radius of 20 Km from the centre, whichever is less.

Head of Circle (HoC) is empowered to extend the jurisdiction to provide free pick up of the consignments from the locations/customer's premises beyond the municipal limit, in cases wherever required.

HoC in consultation with CIFA may work out the cost of pick up so that pick up may be provided to those customers also who do not fulfill the above criterion.

(ii) Credit facility: Credit facility shall be provided to only those customers who fulfill the following criterion:

•

Credit facility will be offered only to contractual customers who enter into an agreement with the Department as given in Annexure- 'B' and present the consignments for booking at identified centres only.

Once the request of the customer to avail credit facility is approved by the competent authority, the customer will be required to furnish a Security Deposit in the form of 'Bank Guarantee' as per format given at Annexure-'C'. Alternatively, Security may also be deposited either through ACG 67 (type of unclassified receipt) or Fixed Deposit from any Post Office or Fixed Deposit from a bank in India. Contractual customer shall be required to furnish the Security Deposit (Bank Guarantee/ ACG 67 or Fixed Deposit from any Post office/ Fixed Deposit from bank) with the concerned Postmaster before availing the credit facility.

Amount of security deposit to be furnished should be equal to the expected business of three billing cycles.

The Bank Guarantee/ Security Deposit should be valid for a period of at least 3 months beyond the expire of agreement. Eg. it should be valid for 27 months from the date of the agreement, if the agreement period is 2 years, i.e. 3 months beyond the expire of agreement. In case the agreement period is 1 year, validity would be for a period of 15 months.

The Bank Guarantee/ Fixed Deposit should be issued by a Nationalized/ Scheduled Bank.

If the applicant is a Central/ State Government Ministry/Department/ Nationalized or Scheduled Bank/Public Sector Undertaking; in such cases, the authorized signatory of the applicant shall furnish an undertaking to the Department in the format given in Annexure- 'D'.

The amount of Bank Guarantee/ ACG 67 or Fixed Deposit from any Post office/ Fixed Deposit from bank shall be reviewed by the authority who has signed the agreement on quarterly basis. In case revenue amount of international accountable mail services exceeds the amount of Bank Guarantee, a Bank Guarantee of the additional amount from the contractual customer would have to be taken.

In case customer fails to provide minimum business prescribed for a contractual customer for two consecutive months, credit facility will be withdrawn.

(iii) Advance Deposit facility:

•

Contractual customers who want to avail advance deposit facility have to sign an agreement as given in Annexure- 'B' and present the consignments for booking at identified centres only.

•

The Advance deposit customer will have to open a deposit account with minimum amount of Rs. 5000/-product wise (i.e. separate account EMS/Parcel/Registered/ITPS).

for

In case of booking at multiple locations (NAF), minimum amount of advance deposit would be Rs. 50,000/- product wise.

The arrangements made by this contract shall be liable to be terminated by either party without assigning any reasons thereof at any time giving one month's prior notice in writing to the other party. Once the agreement is terminated, the final statement as on the date of termination of the agreement shall be prepared and balance amount, if any, will be paid to the customer by the approving authority within 15 days from the date of termination.

(iv) Billing:

The bill for each international mail product shall be issued separately.

The bill will be raised on 15 or 30 days (fortnightly/monthly) basis by the office of booking, as opted by the customer at the time of contract, and can be changed later with mutual consent. However, the appropriate discount slab will be applicable based on monthly revenue only.

In case the contractual customer opts for billing cycle of fortnightly/15 days, the bill shall be issued on 22nd of the current month and 7th of the following month. The applicable discount will reflect in the bill of the 7th day of the following month, after considering total revenue of the previous month.

In case the contractual customer opts for billing cycle of 30 days, the monthly bill will be raised by the booking office by the 7th day of the following month (invoice date). The applicable discount will reflect in this bill, based on the total revenue of the previous month.

The BNPL customer shall pay the bill amount in full, on or before the last day for payment as tabulated below:

SI NO

Billing cycle

Date

generation

bill Last date of Payment

for BNPL customer

15 days/fortnightly 22nd of the month

30th/31st of

the

month of bill

generation.

30 days/monthly

7th of the following 15th of the month of month

bill generation. 7th of the following 30th/315 of month

the

month of bill generation.

In case the customer fails to make the payment by the due date, penalty at the rate of 12% per annum (to be calculated daily) on the amount of the bill shall be imposed by

9. All existing bulk customers should be informed about the revised provisions made as per this OM.

10. In case of national account facility, approving Circle will communicate to the other Circle about the action taken as per the revised provisions made as per this OM.

11. The technical development on the following points are under way -

(a) for additional discount through DNK booking by both contractual and non-contractual

customers.

(b) Billing cycle of 15 days.

These will be implemented on completion of required technical development in the system and will be conveyed by the Directorate separately.

12. In the event of closure of advance payment account, the balance amount shall be refunded by approving authority.

This issues with the approval of competent authority.

firams

(Himanshu Chaudhary)

Assistant Director General (IM)

1.All Heads of Circles/ Addl. DG, APS

2. CGM(BD&MD)/CGM (PLI)/CGM (Parcel Directorate)/Director (RAKNPA)/AS&FA

3. GM(CEPT) Mysore -570010 with request to upload the OM on India Post Website and necessary changes

4.All DDSG in Postal Directorate/Secretary (PSB)

5.All Directors in Postal Training Centres

6.All offices of exchange

Copy to:

1.Sr. PPS to Secretary (Posts)

2.Sr.PPS to DG (Posts)

3.PPS to Members of the Postal Service Board and Addl. DG

•

the Department upon the defaulting customer. The penalty will be imposed from the bill date.

No booking of international mail consignments will be allowed from the defaulting customer after one month from the due date of the payment of bill till all the pending bills, along with the penalty due, are paid in full to the Department.

In case of non-payment of bill even after 2 months from the bill date, action will be taken by the designated authority for invoking the Bank Guarantee to recover the total outstanding amount. This period can be extended for Central/State Government organization by the concerned CPMG, if deemed fit.

However, the Department may accept the booking of international mail consignments from such defaulting customer on full prepayment of postage as a new customer in accordance with prevailing guidelines.

The offices of billing would prepare a monthly statement of international mail products separately for the booking received from contractual customers (Format E) and submit a copy to its Divisional office/ Reporting office with copy endorsed to Postmaster General and Chief Postmaster General.

5 Designated Authority:

(i) Designated authorities shall be Head of the Division where customer intends to avail facility of Dak Ghar Niryat Kendra /International Business Centre/ Foreign Post offices/Post Office for booking of international mail.

(ii) The designated authority shall verify the application and forward both the copies of the application to the approving authority with his/her recommendations.

(iii) The approving authority shall examine the application in consultation with his/her financial advisor and approve/ reject the application and send one copy of the application duly approved/rejected to the designated authority, or ask for wanting documents, if needed, for the approval. The second copy of the application would be retained by the approving authority.

6. This discount structure and operational guidelines will come into existence with effect from 1st September, 2024. Necessary provisions in the software will be made by CEPT accordingly.

7. Immediate action should be taken by concerned circles/regions/divisions to get into agreement with the contractual/bulk customers as per the format (Annexure - 'B') and obtain requisite bank guarantee (Annexure - 'C') as stipulated in this OM.

8. Proforma of undertaking to be provided by government organization/nationalized/scheduled bank/public sector units is attached at Annexure D.

Annexure A

Application for entering into an Agreement with Department of Posts for International EMS articles

To,

/Madam,

(Designated authority)

I would like to avail following services of the Department of Posts and to be registered as contractual customer:

Name of the service

International

EMS/ITPS/Parcel/Registered

Category

post

Commercial

Non-commercial

National Account facility required (in case of booking from Yes/ more than one location

Number & Name of booking locations and name of nodal

office for centralized billing and payment

Mode of Payment

Credit under BNPL scheme /

Billing Cycle

Whether Central/State Government

Ministry/Department/Nationalized Bank/Scheduled

Bank/PSU

Nature of the Firm*

Advance Deposit

15 days/30 days

Yes

PAN/TIN/CIN/Aadhaar Card*

GST No.

Registered Office*

Address where articles will be booked/inducted

Address of correspondence

Registered/Partnership/Sole proprietor/individual/ others (please specify)

Contact details

Approx. number of international articles to be booked in

each calendar month and postage payable on them.

Date:

Place:

Name:

Complete address with PIN Code:

Ph. No

Mobile No.

Fax (if any):

Email id:

Authorized Signatory*:

(*with supporting document)

Note: The KYC documents must be collected from customers requiring bulk booking facility

for international mail products (EMS/Parcel//Registered/ITPS)

Format of Agreement for Contractual Customers

Annexure-B

An agreement made this ---- day of -----

--between the Department of Posts on behalf of the President of India (hereinafter called the 'Department on the one part) and ----- having its Head Office at

residing at

(hereinafter called 'the sender' which expression shall unless excluded by or repugnant to the context be deemed to include his successor, representatives and permitted assigns) on the other part.

Whereas the Department has agreed with the sender to book, transmit and deliver such articles, presented by the sender as international EMS & ITPS consignments under Credit/Advance Deposit/making payment at the time of booking as per the terms & conditions hereinafter contained.

It is hereby mutually agreed and declared by and between the parties hereto as follows:

of‒‒‒‒‒‒‒

I. This agreement shall come in force as from the day of- and shall continue in force for a period of 2 years.

2. The sender shall prepare, pack and make up the international mail consignments as prescribed by the Department. The contents shape and size of the articles shall be according to the provisions and conditions provided for and as notified by the Department from time to time.

3. The sender shall ensure that no article, transmission of which is prohibited for transmission as international mail consignments as per the instructions issued by the Department from time to time, is presented for booking.

4. The sender shall fill up correctly such documents/records, which may be prescribed by the Department to enable it to book, convey and deliver the articles expeditiously.

5. The expected monthly postage on booking of international mail consignments comes to Rs.

6. Security deposit in form of for Rs, (in figures) (in words), which is equal to anticipated of three billing period international EMS charges has been furnished by the sender and is enclosed.

As the sender is a Central/State Government Ministry/ Department/ Nationalized/Scheduled Bank/ Public Sector Undertaking, the authorized signatory of the sender has furnished an undertaking that the sender shall make the full payment of the bills raised by the Department by the end of the calendar month following the calendar month of which the bill pertains.

Contractual Customers who want to avail Advance Deposit facility have to open a deposit account with minimum amount of Rs. 5,000/- for each product separately. In case of booking at multiple locations, minimum amount of advance deposit would be Rs. 50,000/- for each product separately

7. In case of revision of tariff /charges of international mail products, the Department shall hold the right to revise the amount of security deposit to be furnished. In case of

any such revision, the sender shall furnish the security deposit of the additional amount within a period of four weeks of intimation by the Department.

8. The arrangements covered by this contract shall be liable to be terminated by either party without assigning any reasons thereof at any time giving one month's prior notice in writing to the other party.

9. The Department shall raise the international mail charges (separately for each opted category) bill as per billing cycle opted by the customer

•

The BNPL customer shall pay the bill amount in full on or before last day for payment as tabulated below:

SI NO

Billing cycle

Date

generation

15 days/fortnightly 22nd of the month

30 days/monthly

Bill Last date of Payment

for BNPL customer 30th/31st of the month of bill generation

bill generation.

7th of the following 15th of the month of month 7th of the following 30th/31st of the month month

of bill generation.

10. In case the sender fails to make the payment by the due date, penalty at the rate of 12% per annum (to be calculated on a daily basis) on the amount of the bill shall be imposed upon the defaulting organization. The penalty will be imposed from the Bill date.

11. In case customer fails to provide minimum business prescribed for a contractual customer for two consecutive calendar months, credit facility will be withdrawn.

12. No booking of international mail consignments will be allowed from the sender after one month from the due date of the payment of bill till all the pending bills along with the penalty

due are paid in full to the Department. In case of non-payment of bill even after 2 months from the due date, Department will have the right to invoke the security deposit for recovery of the total outstanding amount.

13. Any payment due to the firm from the Department will not be adjusted against the bill.

14. Sender shall abide by all rules and orders etc. brought out by the Department from time to time on the subject.

15. Department will not be responsible for the quality/content of the product being sent by the contractor or his authorized agent.

16. Any claim of the sender shall not be adjusted against amount payable to Department.

17. The sender must understand that international mail is not an insured service unless expressly provided and liability of international mail is limited to the provision of Post Office Act, 1898.

18. In case of any legal implications, the same should be dealt only in the jurisdiction of office where the agreement is signed.

19. The Sender shall post its articles at

--- Office (s).

20. Sender shall file Postal Bill of Export for commercial articles.

21. The billing cycle is

[ as per option-15th /30 days (Fortnightly /monthly)

Witness:

1. Signed by------

For---- ---on behalf of

2. Signed by-----

for and on

For and on behalf of the President of

India

Annexure-C

FORM OF BANK GUARANTEE

In consideration of the President of India (hereinafter called "the Government") having agreed to enter into an agreement with

(hereinafter call the "the Customer(s)", under the terms and conditions of said Agreement dated--------------made between and for--- (hereinafter call "the said Agreement"). The Customer is required to furnish an unconditional and irrevocable bank guarantee for Rs (Rupees only) issued by a nationalized/ scheduled bank as security for the due fulfilment by the said Customer(s) of the terms and conditions contained in the said Agreement. We (indicate the name of the bank), hereinafter referred to "the Bank) at the request of -Customer(s) do hereby guarantee the due and punctual performance of all obligation of Customer under the agreement and undertake to pay to the Government an amount not exceeding Rs (Rupees) against any loss or damage caused to or suffered or would be caused to or suffered by the Government by reason of any breach by the said Customer(s) of any of the terms and conditions contained in the said Agreement.

2. We (indicate the name of the bank do hereby undertake to pay the amounts due and payable under this guarantee without any demur, merely on a demand from the Government stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the "Government" by reason of breach by the said Customer(s) of any of the terms and conditions contained in the said Agreement or by reason of the Customer(s) failure to perform the said Agreement. Any such demand made on the bank shall be conclusive as regards the amount due and payable by the Bank under this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding Rs. (Rupees---

---).

3. We undertake to pay to the "Government" any money so demanded notwithstanding any dispute or disputes raised by the Customer(s) in any suite or proceeding pending before any court of tribunal relating thereto or liability under this present being absolute and unequivocal.

4. We,

(indicate the name of the bank) further agree that the guarantee herein contained shall be irrevocable and shall remain in full force and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the Government under or by virtue of the said Agreement have been fully paid and its claims satisfied or Discharged or till

----Office/ Department/Ministry---

of certifies that the terms and conditions of the said Agreement have been fully and properly carried out by the said Customer(s) and accordingly discharges this guarantee. Unless a demand or claim under this guarantee is made on us in writing on or before the----

we shall be discharged from all liabilities under this

guarantee thereafter.

5. We------

(indicate the name of bank) further agree with the "Government" that the "Government" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said Agreement or to extend time of performance by the said Customer(s) from time to time or to postpone for any time or from time to time any of the powers exercisable by the "Government" against the said Customer(s) and to forbear or enforce any of the terms and conditions relating to the said agreement and we shall not be relieved from our liability by reason of any such variation, or extension being granted to the said Customer(s) or for any forbearance, act or commission on the part of the "Government" or any indulgence by the "Government" to the said Customer(s) or by any such matter or thing whatsoever which under the law relating to sureties would, but for this provision have effect of so relieving us.

6. This guarantee will not be discharged due to any change either in the constitution of the Bank or the Customer(s) or in both.

7. We

(indicate the name of the Bank) lastly undertake not to revoke this guarantee during its currency except with the previous consent of the "Government" in writing.

8. It is declared that the undersigned is duly authorized to execute this guarantee for an on behalf of the bank.

Dated the--

---day of

For------

(Indicate the name of the Bank)

-20

Annexure - D

PROFORMA OF UNDERTAKING TO BE PROVIDED BY GOVERNMENT ORGANIZATIONS/ NATIONALIZED /SCHEDULED BANKS/PUBLIC SECTOR UNITS

|-----------, designation

UNDERTAKING

on behalf of (Name and address of the organization) hereby undertake to ensure payment of the monthly bill(s) to be raised by the Department of Posts for the international EMS articles / ITPS to be booked by----- organization) under credit facility (BNPL scheme) to the Department of Posts by the due date indicated in the bill.

(name of

Signature

Name--

(Designation Stamp of the Officer)

Certified that

Designation

is competent to issue this

undertaking on behalf of ------- (name of the organization)

Signature & seal of the competent authority of the Organization

Annexure -E

Format of statement to sent to approving authority

Name of the Post office/IBC-

Period -

From:

To:

S.No. Name of Customer Contract

Customer ID

opted by

Billing Cycle Booking location Amount

Single/Multiple) collected of

Amount

customer

pending

(15days/30

days)

Bill along with Bill

date

Signature and Designation stamp

In charge of booking office

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