Restrictions on Matter to be Delivered
- The corporation cannot receive or deliver items classified as non-mailable under Sections 1954 and 1955 of the Administrative Code.
- Absolutely non-mailable matter received is forfeited to the Government.
- Unmailable matter under Section 1955 must be returned to the depositor when practicable, without delivery to the addressee.
- Willful violation of these restrictions is grounds for franchise repeal.
Regulatory Supervision
- The Postmaster General, with the Secretary of Public Works and Communications' approval, will supervise the corporation to prevent violations of postal laws and regulations.
Service Charges
- The corporation has the power to set its service charges.
- All charges require approval from the Public Service Commission.
Taxation
- The corporation pays taxes prescribed by the Internal Revenue Code.
- An additional annual tax of 1% on net profit is imposed.
- Proceeds from this tax go to the National Government.
Franchise Conditions
- The franchise is subject to amendment, alteration, or repeal by Congress when public interest requires.
- It is non-exclusive; other entities may operate similar services.
Customer Protection Bond
- The corporation must file a bond amounting to twenty-five thousand pesos.
- The bond serves to cover losses or damages customers may incur.
Effectivity
- The Act takes effect immediately upon approval on June 17, 1961.