No. 1-02/2021-PD
Government of India
Ministry of Communications
Department of Posts
Parcel Directorate
Dated 4th July, 2022
OFFICE MEMORANDUM
Subject: Revision of charges and billing mechanism of Cash on Delivery articles- reg.
Download OM on COD Articles Charges and Billing Mechanism in PDF
In order to bring the Cash on Delivery service of the Department at par with the level of industry standards, it has been decided to rationalize the charges for cash on delivery articles and the billing mechanism for cash on delivery service.
2. In addition to postage, the revised CoD charges are as under:
Amount to be recovered from addressee | Schedule of fee*
Up to Rs.6,500/- 1.6% of the amount recovered
Above Rs. 6,500/- Rs. 100/- + 1% of amount exceeding Rs. 6,500/-
*The above fee shall be exclusive of taxes and the taxes, if leviable, have to be paid extra as notified by the Central Government from time to time.
3. Further, the current procedure of upfront deduction of CoD fee before remitting the CoD amount to the sender has been done away with. CoD charges will be claimed from the customer as a part of the monthly invoice. Detailed guidelines to be followed in this regard have been enclosed at Annexure A and the procedure for accounting of revised CoD charges, remittance of CoD amount and invoicing is annexed at Annexure B.
4, In view of the changes in the Cash on Delivery charges and billing mechanism which are at par with the industry standard, it is requested to make all out efforts to get increased business of Cash on Delivery service from the existing as well as new customers.
5. This issues with the approval of Competent Authority for implementation
with effect from 21.06.2022.
Upfront deduction of CoD fee before remitting the CoD amount to the sender has been done away with. CoD charges will be claimed from the customer as a part of the monthly invoice.
The bill for fee on delivery of Cash on Delivery articles shall be issued as a part of the monthly bill.
The bill will be raised on a monthly basis (calendar month) by the office of booking. The monthly bill shall include all CoD articles delivered in the said month.
The monthly bill will be raised by the booking office by the 7th day of the following month (bill date). The contractual customer shall pay the bill amount in full on or before the last day of the month in which bill is raised, ie., due date. .
For customers providing monthly business of more than Rs.50 lakhs, if opted, the bill may be raised on fortnightly basis. However, the applicable discount for such customers will be adjusted on monthly basis in the bill raised in the second fortnight of the month.
For the fortnight billing, the first bill will be raised by 22nd day of the current month which shall be paid on or before 7th day of the following month. The bill for the second fortnight will be issued on 7th day of the following month which shall be paid on or before last day of the month in which bill is raised i.e. due date.
In case the customer fails to make the payment by the due date, penalty at the rate of 12% per annum on the amount of the bill shall be imposed by the Department upon the defaulting customer (to be calculated on a daily basis). The penalty will be imposed from the Bill date as done in case of postage as per OM no. 10-23/2013-BD&MD dated 24.01.2017.
No booking of Speed Post or Business Parcel consignments will be allowed from the defaulting customer after one month from the due date of the payment of bill till all the pending bills along with the penalty due are paid in full to the Department.
In case of non-payment of the bill even after two months from the bill date, action will be taken by the designated authority for invoking the Bank Guarantee to. recover the total outstanding amount. This period can be extended for Central/ State Government organization by the concerned CPMG, if deemed fit.
The Department may accept the booking of Business Parcel or Speed Post consignments from such defaulting customer on full prepayment of postage as a new customer in accordance with prevailing guidelines.
For Advance Deposit customers
In case customer is an advance deposit customer, the adjustment of CoD fee shall be done from the amount deposited by the customer as Advance with the Department.
The Department shall raise the COD charges statement as a part of the monthly statement by 7th of every month in respect of all Cash on Delivery articles whose payment is paid in the preceding month showing the balance available in his account and amount utilized.
For all bulk customers
The discount as per the OM no. 10-23/2013-BD&MD dated 24.01.2017 or any further orders, shall be exclusively applicable on charges for postage of articles. No discount shall be applicable on CoD fee, unless exclusively mentioned.
Any claim of the sender will not be adjusted against amount payable by him to the Department
