Question & AnswerQ&A (Republic Act No. 7354)
The official title of Republic Act No. 7354 is the "Postal Service Act of 1992."
The Act creates the Philippine Postal Corporation, a corporate body responsible for national postal services.
Its functions include the collection, handling, transportation, delivery, forwarding, returning, and holding of mails, parcels, and similar materials nationwide and internationally; disposing of prohibited or undeliverable mail; and developing a nationwide postal system covering all settlements in the country.
The Philippine Postal Corporation shall be attached to the Department of Transportation and Communications for purposes of policy coordination.
The Corporation has authorized capital stock of 10 billion pesos divided into 45 million Class "A" shares and 55 million Class "B" shares. Class "A" shares are fully subscribed and owned only by the government or its instrumentalities. Class "B" shares may be owned by private entities and sold publicly.
The President of the Philippines appoints the initial seven (7) members of the board, including the Postmaster General as a government representative.
The Act prohibits officers and employees from conducting strikes, work slowdowns, or stoppages due to the vital nature of postal services, though it does not prevent forming unions for employment condition improvements.
The Postmaster General represents the Corporation, signs contracts and debt instruments approved by the Board, determines staffing and personnel duties, appoints and removes personnel below Assistant Postmaster General, delegates powers, and performs duties assigned by the Board.
The Corporation is exempt from direct and indirect taxes, customs duties, fees, tariff duties, compensating taxes, wharfage fees on imported postal equipment and supplies; tax exemptions also cover its obligations and income, including those from private international financial institutions. It is also exempt from capital gains tax and local government fees after December 31, 1997.
The Department of Transportation and Communications has exclusive power to regulate the postal delivery services industry, with the power to delegate to the National Telecommunications Commission.
Mail or mail matters include all items authorized by the government for delivery through postal services such as letters, parcels, printed materials, and money orders.
The Corporation may charge fees for postal services rendered, receive payment, and prescribe the manner of collection, subject to the provisions of the Act.
Members of the Board must not have any financial or pecuniary interest directly or indirectly in contracts or privileges granted by the Corporation, nor in any business with an inherent conflict of interest.
All rights, duties, assets, contracts, and records of the abolished Postal Services Office are transferred to the Philippine Postal Corporation without need for conveyance or assignment.
The liability is limited to amounts or values provided for by the Universal Postal Union and applicable international or bilateral agreements to which the Philippines is a signatory.