This document discusses establishing a sanctions mechanism within the Universal Postal Union for countries with long-term outstanding debts related to postal accounts between designated postal operators. Some designated operators have debts dating back over 25 years that formal collection procedures have not resolved. The document examines Chile's situation, finding that 99% of Chile's debts are concentrated in just 13 countries, with one country never having paid its debts. It considers implementing incentives for payment or use of a clearing system, collection through third parties, reduced processing priority, or service suspensions as possible sanctions under the UPU regulations to address long-term non-payment of postal debts.

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Resolution C 58/2012
Doha Congress
Definition of a sanctions mechanism for non-
payment of ongoing, long-term debts
related to general accounts (CN 52) between
designated operators
Berne, April 2014

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BACKGROUND
• Formal collection procedures do not have the desired effect in countries
with long-term debts, even if the CN 52 accounts are duly accepted by
designated operators.
• Some designated operators have outstanding international accounts
dating back more than 25 years.
OBJECTIVES
• Carry out a study to consider the inclusion of a sanctions mechanism in
the Letter Post and Parcel Post Regulations to resolve this situation.
• Present this mechanism in the next cycle for prompt implementation.
REASONS FOR THE PROPOSAL
AND OBJECTIVES

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CURRENT SITUATION IN CHILE
RECORDS UP TO FEBRUARY 2014
*Debts duly accepted by parties
COUNTRY
2006 and
earlier
2007-2011 2012 2013 2014 TOTAL USD (%)
COUNTRY 1 43 390,701 10,592 -17,919 -15,067 368,351 21.7%
COUNTRY 2 0 0 -150 36,088 250,037 285,974 16.9%
COUNTRY 3 0 852 55,067 90,566 20,355 166,840 9.8%
COUNTRY 4 0 40 62,815 48,155 40,905 151,916 9.0%
COUNTRY 5 0 0 24,137 57,147 46,556 127,841 7.5%
COUNTRY 6 487 2,410 35,616 117,263 -44,607 111,169 6.6%
COUNTRY 7 0 56,968 20,724 13,206 5,482 96,380 5.7%
COUNTRY 8 58,291 23,183 4,785 4,707 4,086 95,053 5.6%
COUNTRY 9 91,618 363 120 709 66 92,877 5.5%
COUNTRY 10 0 32,951 15,985 9,888 0 58,824 3.5%
COUNTRY 11 59,997 -5,683 262 1,513 -316 55,772 3.3%
COUNTRY 12 27,500 220 10,634 5,292 -5,930 37,715 2.2%
COUNTRY 13 0 -1,547 1,907 34,324 693 35,377 2.1%
OTHER
COUNTRIES
78,267 -20,583 43,824 122,512 -212,617 11,404 0.7%
316,203 479,875 286,319 523,452 89,643 1,695,491 100%

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2006 and earlier 2007-2011 2012 2013 2014 TOTAL USD
316,203 479,875 286,319 523,452 89,643 1,695,491
Debt up to 2007 -
% of total
47%
99% of debt concentrated in 13 countries
24% of the countries with whom we exchange accounts
% of company’s
annual income
1,5%
Debt concentrated in 3 countries
One of the countries has NEVER paid its debts
CURRENT SITUATION IN CHILE
SUMMARY

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ACTIONS under the Convention and
Regulations
• Debt collection notices, sent to higher and higher authorities, up to the
highest level of authority
• Communication with postal regulator
• Chile’s Ministry of Foreign Affairs
• Ambassadors
We have NEVER applied:
• Interest on the amount due
• Suspension of service
• Reduced priority in processing of items

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Some formal mechanisms to consider
• Provide economic incentives for the operator to join UPU*Clearing
• Provide incentives for payment agreement mechanisms
• Third-party collection: collect debts through a third country
• Reduced priority in the processing of certain categories of items
• Reduced priority for all mail items
• Suspension of services not within the universal postal service
• Full suspension of the service after X amount of time

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