Parcel Services Customer Guide Amendment No. 7 Effective January 12, 2015 This amendment forms part of your Parcel Services Agreement with Canada Post and amends the Parcel Services Customer Guide of November 15, 2013, in accordance with the applicable effective date. All other terms and conditions remain the same. Please keep this amendment with your copy of the Guide. The revised version of the Parcel Services Customer Guide, which includes the amended information, will be available on the effective date of this amendment at canadapost.ca/customerguides. Removal of the automation discount As part of the 2015 rate action, we are discontinuing the automation discount now that most of our customers are either using Canada Post s Electronic Shipping Tools or an approved shipping system. Changes to the ABCs of shipping Dimensional weight factor We are making changes to our dimensional weight factor (cubing factor) moving from 6,000 (166 when using imperial measurements) to 5,000 (139 when using imperial measurements) for items shipped by Priority TM, Xpresspost TM, U.S. and international services (excluding Tracked Packet TM and Small Packet TM ). Changes to the pricing, payment and general terms and conditions Paying for your mailing We are making changes to update our policies related to invoice discrepancies and administration fees providing more visibility to customers. Change to the pricing, payment and general terms and conditions Limitation of liability We made a change to the language of the Customer Guide to better reflect process. Change to the pricing, payment and general terms and conditions Notices We made an edit to update the mailing address. Page 1 of 6
The changes apply as follows: Removal of the automation discount Section 5 Online Solutions and Shipping Tools 5.2.2.2 Third-party vendors In this section, we replaced the second paragraph with the following: Once a third-party vendor is approved as a preferred vendor under the elink program, Canada Post customers can use preferred vendors for all Canada Post Parcel Services within Canada, to the U.S. and to international destinations. 5.2.2.3 Customer-developed shipping solutions In this section, we replaced the second paragraph with the following: Canada Post s elink program will ensure that your shipping software produces shipping labels and manifests that comply with Canada Post s systems and requirements. Customers who develop their own software can select shipping services for which they wish to be approved. Section 6 The ABCs of Shipping 6.6.3 Automation discount We removed this entire section. Changes to the dimensional weight factor Section 6 The ABCs of Shipping 6.5.1 How to calculate the volumetric weight (dimensional weight) and calculate the correct shipping fee We replaced the entire section with the following: The volumetric weight (dimensional weight) of an item is calculated by applying the cubing rule; the rule ensures that the price charged for lightweight packages (low density shipments) adequately covers the cost of transportation for the space occupied. The cubing rule is widely used in the transportation industry. 1. Find the volume of the item: length x width x height = volume Note: Measurements must be rounded to the nearest centimetre. (if weight is in kilograms). Page 2 of 6
Using the largest facing surfaces, length is the longest dimension and width, the shortest. Height is measured at right angles to the largest surface. Girth is the distance around the item, measured at right angles to the length. These measurements are shown in the figure below. For a square or rectangular item or mailing tube, calculate the volume by multiplying length (A) x width (B) x height (C). 2. Find the volumetric weight of the item: volume cubing factor = volumetric weight. Divide the volume by a cubing factor of 6,000 (5,000 for Priority, Xpresspost, U.S. and international services, excluding Tracked Packet and Small Packet when measurements are in centimetres to obtain the volumetric weight in kilograms. When using imperial measurements (inches), use the cubing factor of 166 (139 for Priority, Xpresspost, U.S. and international services, excluding Tracked Packet and Small Packet to obtain the volumetric weight in pounds. 3. Weigh the item to determine the actual weight in pounds or kilograms. 4. Determine the shipping price based on the greater of the volumetric weight or the actual weight. (The actual weight cannot exceed 30 kg [66 lb.], but it is possible that the volumetric weight could exceed 30 kg [66 lb.].) Example A (weight in kilograms, measurements in centimetres) 1. An item measures 100 cm x 60 cm x 40 cm 100 cm x 60 cm x 40 cm = 240,000 cm 3 (volume). 2. 240,000 cm 3 6,000* = 40 kg (volumetric weight) 3. The actual weight is 25 kg. 4. The volumetric weight is higher than the actual weight. Therefore, the shipping charge will be based on 40 kg. Page 3 of 6
* Apply cubing factor of 5,000 for Priority, Xpresspost, U.S. and international services, excluding Tracked Packet and Small Packet. Example B (weight in pounds, measurements in inches) 1. An item measures 39.4 in. x 23.6 in. x 15.7 in. 39.4 in. x 23.6 in. x 15.7 in. = 14,598 in. 3 (volume). 2. 14,598 in. 3 166 = 88 lb. (volumetric weight). 3. The actual weight is 55 lb. 4. The volumetric weight is higher than the actual weight. Therefore, the shipping charge will be based on 88 lb. Apply cubing factor of 139 for Priority, Xpresspost, U.S. and international services, excluding Tracked Packet and Small Packet. Changes to paying for your mailing Section 8 Pricing, Payment and the General Terms and Conditions 8.2 Paying for Your Mailing In Section 2.1 Invoice, we replaced the entire section with the following: If ACCOUNT was selected to pay for a mailing, Canada Post will provide the customer with an invoice that summarizes the charges posted to the customer s account. The charges reflected on the invoice are a summary of the mailings/orders (Manifests/Bills of Lading) that a customer has submitted to Canada Post with the following exception: Customers who elect to pay for services by credit card will not receive an invoice. However, Canada Post does provide details for credit card transactions through the epost service. Visit epost.ca to sign up for the epost TM service or for more details on this service. For more information on CREDIT CARD as a payment option, see Section 8.2.1.7 Credit Card. Customers should advise the Credit Management Group at 1-800- 267-7651 of any discrepancies. Invoice/billing discrepancies must be brought to Canada Post s attention within 90 days of the date of the invoice, after which time such invoice will be deemed accepted by the Customer. In the event that Canada Post is requested to respond to any invoicing discrepancy initiated by, (i), the customer or, (ii), any third-party on behalf of customer within the period mentioned above, Canada Post reserves the right to charge the customer an adjustment and/or investigation fee(s) (the investigation fees will apply in cases where Canada Post determines that disputed charges were correctly calculated on the original invoice). Canada Post reserves the right, at its sole discretion, to refuse a request for a refund or credit of shipping charges for any shipment, when such request is made by any party other than the payer of the shipping charges. A list of account administration fees is available upon customer request by contacting the Credit Management Group. Page 4 of 6
Customers can access a copy of their invoice through our free online service. See Section 8.2.1.5 Manage My Account for further information. 8.2.1.3 Past-Due Amounts and Administration Fees In Section 3.2 Account Administration Fees, we replaced the entire section with the following: Return Payments An administrative fee will be applied on any payment that is dishonoured for any reason, including a payment returned due to Non-Sufficient Funds (NSF). The customer agrees to reimburse Canada Post for all costs, including legal fees and bank charges, incurred as a result of late or dishonoured payments. Document Copies Customers requiring duplicate copies of invoices may access them through our free online service. See Section 8.2.1.5 Manage My Accounts for further information. Requests for duplicate invoices or other documentation (for example, Bills of Lading, Manifests and packing slips) fulfilled through our account management group are subject to service fees for items up to six months from their creation date. Additional fees will be charged for items older than six months, if available. Corrections Customers requiring corrections to orders or invoices or customers transmitting invalid or late electronic orders, where Canada Post is not responsible, are subject to additional service fees. Investigations In the event Canada Post is requested to investigate invoice discrepancies (including, but not limited to service guarantee failures), Canada Post may apply an additional fee for the number of disputed items submitted that Canada Post has investigated and determined to be correctly charged as originally invoiced. Canada Post reserves the right to amend administration fees at any time without prior notification. A list of account administration fees is available upon customer request by contacting the Credit Management Group at 1-800-267-7651. Page 5 of 6
Change to limitation of liability 8.3.21 Limitation of Liability In Section 8.3.21.3 Availability of Liability Coverage, we replaced the entire paragraph for item c) with the following: Canada Post shall have no liability for loss of an Item where there is no scan recorded on the individual Item or evidence of the Item being, or having been, in the course of post. A scan that includes the term shipment signifies that the shipping document (or manifest) was scanned and does not indicate a scan recorded on the individual item. Change to notices 8.3.23 Notices In this section, we changed the mailing address to the following: AGREEMENT MONITORING CANADA POST CORPORATION 2701 RIVERSIDE DR SUITE B0230 OTTAWA ON K1A 0B1 Page 6 of 6