Obligations and Rights of Postal Operators
[ Last Updated 15 May 2006 ]
Resources and Networks Branch
The Postal Services Act 1998 introduced competition to postal services in New Zealand by removing New Zealand Post Limited's statutory monopoly on the carriage of letters. This means that any company or individual is allowed to carry letters for profit, so long as that company is registered as a Postal Operator by the Chief Executive of the Ministry of Economic Development. The Act only regulates the carriage of letters: there are no restrictions on the carriage of other parcels (e.g. courier packages).
This document is only intended as a guide to the rights and obligations of postal operators. It does not constitute legal advice. Intending postal operators should consult the printed text of the Postal Services Act 1998, available from Bennett's Government Bookshops and take independent legal advice.
Who May Carry and Deliver Letters for Profit?
Anyone can carry on business as a postal operator (i.e. collect, carry or deliver letters) so long as they are registered as a postal operator, by the Chief Executive of the Ministry of Economic Development. Postal operators must fulfil certain criteria and follow the provisions of the Postal Services Act. The Act only applies to those persons involved in the collection, carriage or delivery of letters.
What Is Classified as a Letter?
A letter is defined in the Postal Services Act as:
(a) any form of written communication, or any other document or article, -
(i) that is addressed to a specific person or a specific address; and
(ii) that is to be conveyed other than by electronic means; and
(iii) for which a charge of not more than 80 cents (inclusive of goods and services tax) is made in respect of carrying, taking charge of, or sending it; and
(b) includes an envelope, packet, package, or wrapper containing such a communication, document or article.
How Do I Become Registered as a Postal Operator?
Registration forms are available from this site, or from:
Postal Policy Section
Telecommunications and Postal Policy Group
Ministry of Economic Development
PO Box 1473
Wellington
Please contact:
Phillip Toye
Senior Policy Analyst
Telephone: 04 462 4267
Facsimile: 04 499 0969
Is Registration Automatic?
Where a person or company plans to carry out business as a postal operator, registration is normally automatic unless the applicant, or any person concerned in the management of the business, has been convicted in the previous ten years of a specified criminal offence, including:
- a crime involving dishonesty within the meaning of s. 2 of the Crimes Act 1961;
- an offence against any of ss. 6, 7, 9 or 12 of the Misuse of Drugs Act 1976;
- an offence against ss. 20, 23 or 24 of the Postal Services Act 1998 (which relate to the wrongful divulgence of information gained from a postal article; unlawfully opening a postal article; or posting a dangerous enclosure) or equivalent provisions of the Postal Services Act 1987;
- an offence against any foreign law, where the offence consists of or includes conduct that, if it occurred in New Zealand, would be an offence referred to any of the sections above.
Where such an offence has been committed, the Chief Executive will consider each application individually.
Who Is Not Required to Register?
You are not required to be registered as a postal operator if you:
- deliver letters other than in order to carry out a business (e.g. a company or local authority delivering its own mail);
- carry letters only as an employee or agent of a postal operator; or
- carry letters under a contract for services with a postal operator.
What If I Don't Register?
Any person who carries on business as a postal operator without being registered by the Chief Executive of the Ministry of Economic Development is liable on conviction to a fine of up to $10,000 and a further fine of up to an additional $1,000 for every day that the offence continues.
What Information Do I Have to Provide?
Under the Postal Services Act 1998, prospective postal operators are required to provide the following information:
- name;
- place of business;
- details of names and addresses of individual operators/ partners, or the chief executive and directors in the case of businesses;
- a statutory declaration related to their criminal records (if any);
- brief details of the proposed business; and
- samples of the proposed postal identifier (see What Is a Postal Identifier? below).
There is a penalty of up to $10,000 for knowingly providing false or misleading information to the Chief Executive in relation to an application for registration. In addition, the Chief Executive has the power to cancel registration where it was gained by making false or misleading representations. Registration details will be made available to the public via the Ministry's Internet site or an application at the Head Office of the Ministry. Registered operators have the right to access and amend the information.
Is There a Charge?
An non-refundable application fee of $95.00 (including GST) is payable at the time of application.
What Rights Do Postal Operators Have?
The Postal Services Act provides registered postal operators with a number of rights which are not available to other organisations and individuals involved in the delivery business (e.g. couriers). These include, inter alia:
- the right to detain, open and examine postal articles which have been posted in contravention of certain legislation;
- the right to apply to the District Court for an order to dispose of seized postal articles;
- the right to open postal articles in order to effect their delivery;
- the right to erect public letterboxes (in accordance with relevant planning rules);
- an exemption from liability arising from the loss or delay of letters.
What Obligations Do Postal Operators Have?
The Postal Services Act imposes a number of obligations on postal operators, including, inter alia:
- operators are required to contact the appropriate Government authority where it is discovered that a postal article or letter has been posted in contravention of any law;
- operators must keep a record of all postal articles detained or opened and provide the Chief Executive of the Ministry of Economic Development with access to the record;
- operators are required to notify recipients that a postal article will be, or has been opened, and the reasons for the opening of the article (although such notice must be delayed where a postal operator believes that the giving of such notice may interfere with law enforcement investigations);
- postal articles which have been detained by a postal operator must be kept safely pending their disposal;
- operators must ensure that the Chief Executive of the Ministry of Economic Development is informed of changes in any of the details maintained on the register of postal operators;
- postal operators must identify mail accepted by them by marking each postal article with that operator's postal identifier;
- when a postal operator ceases business as a postal operator, that operator is required to remove or disable all public letterboxes; and deliver all postal articles in that operator's possession; and
- to assist in carrying out the provisions of the Trade in Endangered Species Act and to prevent the importing or exporting of any endangered, threatened or exploited species (other than in accordance with that Act).
What Is a Postal Identifier?
Every postal operator is required to mark mail accepted by it for the purpose of being conveyed by post with a "postal identifier". A "postal identifier" means any name, logo, mark or design -
- that is affixed to or impressed or printed on postal articles; and
- that uniquely identifies that postal operator; and
- that clearly indicates to members of the public that those postal articles have been, or are intended to be, accepted by that postal operator for the purpose of being conveyed by post.
A postal identifier may be a name, logo, stamp, postmark or other label or mark. It can be as simple as a rubber stamp bearing the name of the postal operator. All postal identifiers used must be registered with the Ministry of Economic Development. They are made available for public inspection as part of the register of postal operators.
The Ministry of Economic Development does not have the statutory power to decline to register postal identifiers that include copyrighted words or trademarks and does not check proposed postal identifiers against the trademark database. Copyright or trademark issues should be resolved between the parties concerned. Registration of a postal identifier does not create a trademark or other proprietary right. Operators who wish to protect their name are advised to seek independent legal advice.
With What Other Legislation Must Postal Operators Comply?
Postal Operators are required to comply with all relevant legislation, including transport, planning and tax laws. It is the responsibility of postal operators to ensure that they comply with other laws and regulations and they should seek independent legal advice if they are unsure about their proposed activities.
The Transport Services Licensing Act 1989 requires those operating a motor vehicle for hire or reward to hold a Goods Service Licence. Goods Services Licences are issued by the Land Transport Safety Authority. The Authority's telephone number is 0800 699 000.
Can a Postal Operator Issue Stamps?
No-one except a postal operator designated as a Universal Postal Union (UPU) administration for New Zealand is allowed to issue official New Zealand stamps - i.e. a stamp bearing the words "New Zealand" (or any abbreviation). However, any postal operator can issue other unofficial stamps for the mail they carry. They may only use the words "New Zealand" where:
- the words "New Zealand" appear as part of the postal operator's name on the stamp; and
- the words form part of the name under which the postal operator is registered as a company; and
- the company name appears in full on the stamp; and
- the words "New Zealand" appear on the stamp in the same typeface and point size as the company name appears.
It is an offence punishable by a fine of up to $10,000 for anyone other than a UPU-designated operator to issue stamps bearing the words "New Zealand" in any other form.
How Can I Become a UPU Designated Postal Operator?
Under the Postal Services Act, New Zealand Post Limited has the sole right to UPU designation for a period of five years following the commencement of the Act. The Minister will therefore not consider applications from other companies with an interest in UPU designation before 1 April 2003.
How Do I Get Further Information?
If you require further information, you should consult the Postal Services Act 1998 and take independent legal advice. The Postal Policy section of the Ministry of Economic Development will endeavour to answer general enquiries related to the Act on 04-474 2650.
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