Sponsored by: The ChanRobles Group A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library. This page features the full text of Republic Act No. 7354 "Postal Service Act of 1992" AN ACT CREATING THE PHILIPPINE POSTAL CORPORATION, DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, PROVIDING FOR REGULATION OF THE INDUSTRY AND FOR OTHER PURPOSES CONNECTED THEREWITH. REPUBLIC ACT NO. 7354 AN ACT CREATING THE PHILIPPINE POSTAL CORPORATION, DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, PROVIDING FOR REGULATION OF THE INDUSTRY AND FOR OTHER PURPOSES CONNECTED THEREWITH.
ARTICLE
I
Section 1. Title. — This Act shall be known as the "Postal Service Act of 1992."chan robles virtual law library Sec. 2. Definitions. — As used in this Act: chan robles virtual law library
Sec.
3. Policy and Objectives. — The
delivery of letters, parcels, and other mail letters is a basic and
strategic
public utility which the State shall provide, directly and indirectly
through,
and/or with other duly authorized entities or persons. Accordingly, the
collection, sorting, storage, transporting, and delivery thereof shall
be done with utmost dispatch in the most economical, reliable and
secure
manner that available technology will permit. chan
robles virtual law library
The State shall pursue the following objectives of a nationwide postal system:
CREATION, POWERS AND RESPONSIBILITIES OF THE PHILIPPINE POSTAL CORPORATION Sec.
4. Creation. — There is hereby
created a corporate body to be known as the Philippine Postal
Corporation,
hereafter referred to as the Corporation, which shall be attached to
the
Department of Transportation and Communications for purposes of policy
coordination.chanrobles virtual law library chan
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Sec.
5. Responsibilities and Functions.
— The Corporation shall have the following functions and
responsibilities;
Sec.
6. Powers. — To achieve its objectives
and undertake its functions effectively, the Corporation shall have the
following powers;
Sec.
7. Corporate Powers. — The Corporation
shall have all corporate powers defined under the Corporation Code,
such
as, but not limited to the following;
Sec.
8. Board of Directors. — The
powers of the Corporation shall be vested in and exercised by a Board
of
Directors of seven (7) members to be elected by the shareholders of
record
at the annual business meeting of the Corporation. Initially and to
organize
the Corporation, the President shall appoint all the members, with the
Postmaster General as one of the members to represent the government
shareholdings.
When the private shareholdings become sufficient to elect at least one
(1) Director, the appointment or election of directors shall be done in
accordance with the Corporation Law with the Secretary of
Transportation
and Communications exercising the right to vote the government shares
of
stocks. The Board shall elect a chairman from among its members. chan
robles virtual law library chan
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The
members of the Board so appointed by the President shall hold office
for
a term of five (5) years each, except of those first appointed, two (2)
members shall have a term of five (5) years, two (2) with three (3)
years,
and two (2) with one (1) year. Thereafter, the appointment shall be in
accordance with the Corporation Law.chanrobles virtual law library
The Board shall meet regularly once a month and may hold special meetings to consider urgent matters upon call of the Chairman or any three (3) members. A majority shall constitute a quorum to transact business, and the vote of at least a majority of the members present at a meeting at which there is a quorum shall be valid as a corporate act. The members of the Board, except the Postmaster General or his alternate, shall receive for every meeting actually attended a per diem not exceeding the lowest monthly pay of a regular postal employee, but in no case with the total amount received in any one (1) month by each member exceed four times (4x) the per diem per meeting. Members of the Board shall be reimbursed by the Corporation for actual expense, including traveling and subsistence expenses, incurred by them in the performance of their duties.cralaw No member of the Board shall have financial or pecuniary interest, directly or indirectly, in any business contract or transaction entered into by the Corporation or in any privilege granted by it. Neither shall a member have any interest, financial or otherwise, in any undertaking or business with an inherent conflict of interest with the Corporation. chan robles virtual law library ARTICLE
III
Sec.
9. Capitalization. — The Corporation
shall have an authorized capital stocks of Ten billion pesos
(P10,000,000,000.00)
divided into forty-five (45) million Class "A" shares and fifty-five
(55)
million Class "B" shares, each voting and with a par value of One
hundred
pesos (P100.00). The Class "A" shares shall be fully subscribed by the
Government or any of its instrumentalities, and may only be owned, sold
to, bought or held by a government entity. The Class "B" shares may be
owned by private entities and sold through tenders, public offerings,
or
the stock market, at such time, price or numbers as may be authorized
by
the Board in accordance with the Corporation Law.chanrobles virtual law library The
subscriptions of the National Government in Class "A" shares shall be
paid
as follows:chanroblesvirtualawlibrary
Sec.
10. Source of Funds. — The following
shall constitute the sources of funds against which the operating
expenses
of the Corporation may be drawn;
Sec.
11. Management of Funds. — The
Corporation may, from time to time, invest any of its funds not
immediately
required to be expended in meeting its obligations or in the discharge
of its functions, in such secured notes, government securities, and
other
negotiable instruments that satisfy the guidelines prescribed by the
Board.
chan robles virtual law library All
funds of the Corporation shall be deposited in such commercial and
universal
banks as may be accredited by the National Treasurer as depository of
government
funds. The board shall designate the official signatories of the
Corporation
with regards to the deposit or withdrawal of the Corporation's monies
in
such banks. chan
robles virtual law library
Sec. 12. Obligations. — The Corporation is authorized to secure or contract domestic or foreign loans, credits and other indebtedness, and to issue bonds, notes, debentures, securities and other instruments of indebtedness as it may deem necessary to carry out the purpose of this Act, provided that;
Sec.
13. Annual Budget. — The Corporation
shall, every year, prepare and adopt estimates of income and
expenditures
and capital budget of the Corporation for the ensuing year. Unless the
Corporation shall require subsidy and/or a guarantee of its liability
from
the National Treasury, its budget for the year need not to be submitted
to Congress for approval and inclusion in the General Appropriations
Act.chanrobles virtual law library Supplementary
estimates may be prepared and adopted at any of the Board meeting
called
for that purpose.chanrobles virtual law library
Sec. 14. Exemption from Taxes, Customs, and Tariff Duties. — The importation of equipment, machineries, spare parts, accessories, and other materials, including supplies and services used directly in the operations of the Postal System, not obtainable locally on favorable terms, shall be exempt from all direct and indirect taxes, customs duties, fees, imports, tariff duties, compensating taxes, wharfage fees and other charges and restrictions, the provisions of existing laws to the contrary notwithstanding.cralaw All obligations entered into by the Corporation and any income derived therefrom, including those contracted with private international banking and financial institutions, shall be exempt from all taxes on both principal and interest. The Corporation is also exempt from the payment of capital gains tax, local government imposts and fees after December 31, 1997; Provided, That it may offset the full value of the capital investments not otherwise funded by the National Government against any income tax due for the same period.cralaw Sec. 15. Annual Accounts. — The Corporation shall maintain such accounts and other records under a commercial system of accounting on a calendar year basis. The Board shall cause the publication of the Corporation's annual statement of income and expenditures, including its balance sheet at the end of the reporting period. chan robles virtual law library The audited annual statement of accounts of the Corporation shall present a true and fair value of the financial position of the Corporation and of the results of the operations during the year to which it relates.cralaw For completeness of postal statistics, the Corporation shall likewise record the quantity of official business mails, and the equivalent revenues foregone had the corresponding postage been collected thereto. This shall include "franked mail", or mail matter transmitted without payment or postage under the autographic or facsimile signature of officials to whom this privilege is extended by law, and under such rules promulgated by the Corporation to prevent the unauthorized use thereof.cralaw Sec. 16. Auditor. — In consonance with existing laws and regulations, the Commission on Audit shall appoint and assign such personnel as may be necessary to audit the accounts of the Corporation. However, the Board may engage the services of any person or firm duly authorized by law for the audit of accounts of the Corporation for purposes of complying with its international contractual commitments or with the requirements of holders of Class "B" shares.cralaw The Board shall determine the remuneration, compensation or reimbursement of expenses that may be reasonable and appropriate under the circumstances, for either or both of the interest and external Auditors mentioned above. Sec. 17. Auditor's Report. — The auditor shall, as soon as practicable, but not later than three (3) months after the accounts have been submitted for audit, send an annual report to the Board. The Auditor may also submit such periodical or special reports to the Board may appear to him necessary, or as requested by the Board. Sec. 18. Annual Report. — The Board shall submit to the appropriate regulatory agencies, as identified in Article V of this Act, and to both Houses of Congress, together with the Auditor's Report on the relevant accounts, an annual report generally dealing with the activities and operations of the Corporation during the preceding year, and containing such other information as may be relevant in assessing its overall corporate performance, particularly statistics about the mails, parcels, and mail matters handled or processed by it, and indicators of productivity relating output with the resources used. chan robles virtual law library ARTICLE
IV
Sec.
19. Delegation of Authority.
— Except for those powers, functions, or duties specifically vested in
the Board, the Board may delegate the authority vested in it to the
Postmaster
General under such terms, conditions and limitations as it may
prescribe.
The Board may establish committees, with such authority as the Board
determines
appropriate to carry out its functions and duties. Any power delegated
herein shall not relieve the Board of full responsibility for the
performance
of its duties and functions, and shall be revocable by the Board in its
exclusive judgment. chan
robles virtual law library
Sec.
20. Executive Officers. — The
Corporation shall be managed by a Postmaster General who shall be
assisted
by as many Assistant Postmaster Generals as the Board may deem
necessary
for postal efficiency. They shall be natural-born citizens of the
Philippines,
at least thirty five (35) years old, holders of a college degree, of
good
moral character and proven executive ability and competence. Initially
and until such time that issued Class "A" shares do not fall below
sixty
percent (60%) of the total voting stocks, the Postmaster General shall
be appointed by the President; thereafter, the appointment shall be in
accordance with the Corporation Law. At least a majority of the
Assistant
Postmaster Generals must be career postal officials who shall be
appointed,
and may be removed for cause by the Board, upon recommendation of the
Postmaster
General.
The yearly total monetary compensation, including salary, bonuses, and allowances of the Postmaster General and each Assistant Postmaster General, shall be set by the Board: Provided, That, in the case of the Postmaster General, it shall not exceed twenty times (20x) the lowest annual salary of a regular employee of the Corporation; and in the case of the Assistant Postmaster General, his annual total monetary compensation shall not exceed eighteen times (18x) the lowest annual salary of a regular postal employee in the Corporation.cralaw Sec. 21. Powers and Functions of the Postmaster General. — As the Chief Executive Officer, the Postmaster General shall have the following powers and functions:
Sec.
22. Merit System. — The Corporation
shall establish a human resources management system which shall govern
the selection, hiring, appointment, transfer, promotion, or dismissal
of
all personnel. Such system shall aim to establish professionalism and
excellence
at all levels of the postal organization in accordance with sound
principles
of management. chan
robles virtual law library chan
robles virtual law library
A
progressive compensation structure, which shall be based on job
evaluation
studies and wage surveys and subject to the Board's approval, shall be
instituted as an integral component of the Corporation's human
resources
development program. The Corporation, however, may grant
across-the-board
salary increase or modify its compensation structure as to result in
higher
salaries, subject to either of the following conditions:
Sec.
23. Applicability of Civil Service
Law. — All permanent officers and employees of the Corporation below
the
rank of Assistant Postmaster General shall be subject to the Civil
Service
law, rules and regulations so long as the Corporation is majority-owned
by the Government. The hiring of temporary workers or casuals to meet
peak
or seasonal volume or mail matters shall be exempt from the provision
of
this Section.chanrobles virtual law library chan
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Sec.
24. Prohibition of Strikes, Work
Stoppages and Slowdowns. — In view of the vital nature or postal
services
and its effect on national interests, the officers and employees of the
Corporation are prohibited from conducting strikes, work showdowns or
stoppages,
and such other acts that may disrupt the timely delivery of mail
matters. chan
robles virtual law library
Nothing in this provision shall prevent such officers and employees from forming a union or employee association in accordance with Civil Service rules and regulations and for the purpose of securing changes or improvements in the terms and conditions of their employment.cralaw Sec. 25. Exemption from Rules and Regulations of the Compensation and Position Classification Office. — All personnel and positions of the Corporation shall be governed by Section 22 hereof, and as such shall be exempt from the coverage of the rules and regulations of the Compensation and Position Classification Office. The Corporation, however, shall see to it that its own system conforms as closely as possible with that provided for under Republic Act No. 6758. ARTICLE
V
Sec.
26. The Regulatory Authority.
— The exclusive power and authority to regulate the postal delivery
services
industry or those engaged in domestic postal commerce, as provided for
under Presidential Decree No. 240, shall be vested with the Department
of Transportation and Communications (DOTC), and may be delegated by
the
DOTC Secretary to the National Telecommunications Commission. The
regulatory
authority shall have the responsibility of investigating and
prosecuting
postal offenses of postal service establishments, whether civil or
criminal,
and instituting necessary action or proceedings. Nothing in this
Section
shall prevent or limit the Corporation's authority to investigate,
prosecute
or penalize offenses committed by its employees.chanrobles virtual law library chan
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Sec.
27. Registration of the Postal
Establishments. — The regulatory authority shall:
Sec.
28. Postal Offenses. — The Regulatory
Authority shall exercise the following powers if, in its judgment,
postal
laws have been, are being, or about to be violated;
TRANSITORY PROVISIONS Sec.
29. Abolition of the Postal Services
Office. — The Postal Services Office under the Department of
Transportation
and Communications, is hereby abolished. All powers and duties, rights
and choses of actions, vested by law or exercised by the Postal
Services
Office and its predecessor Bureau of Posts, are hereby transferred to
the
Corporation.chanrobles virtual law library chan
robles virtual law library
All
real and personal properties which upon the effectivity of this Act are
vested in, or owned by, the Postal Services Office are transferred to
the
Corporation without the need of conveyance, transfer or assignment.
Likewise,
all funds, revenues and properties owned by the defunct Postal Savings
Bank, which are not administered by the Philippine National Bank, are
transferred
to the Corporation, provisions of Presidential Decree No. 241
notwithstanding.
The Philippine National Bank is hereby directed to transfer and
turn-over
to the Corporation all funds, revenues, and properties of the defunct
Postal
Savings Bank administered by it, after deducting any liability with
such
assets.
All contracts, records, and documents relating to the operation of the Postal Services Office and its postal field offices are hereby transferred to the Corporation. chan robles virtual law library To ensure smooth transition into a corporate structure, the incumbent Assistant Secretary for Postal Services shall continue to hold office and assume the powers and functions of the Postmaster General under Section 21 hereof until his successor shall have been duly appointed and inducted into office. Officials and employees of the Postal Services Office shall be absorbed into the Corporation on the basis of merit and fitness: Provided, That officers and employees who shall be laid-off during the first two (2) years of the effectivity of this Act and as a result of the organization of the Corporation, shall be entitled to gratuity at the rate equivalent to one and one-fourth (1 1/4) month's salary for every year of continued and satisfactory service rendered or the equivalent nearest fraction thereof favorable to them on the basis of the highest salary received, in addition to the retirement benefits or pensions under existing retirement law. Retirement gratuities of officials and employees who shall not be retained by the Corporation shall be for the account of and reimbursed by the National Government.cralaw Any of such officers and employees who may later be reinstated in the Corporation, or who is rehired in any government office or instrumentality, shall refund the unearned portion of gratuity received from the Corporation before he shall be reinstated or rehired. Sec. 30. Appropriations. — To provide for any extraordinary expenses of the Corporation upon its organization, the unavailed portion of the excess of actual operating income over the estimated expenses of the Postal Service Office, if any, at the time of the passage of this Act is hereby appropriated for purposes that the Board may approve. This shall be considered as part of the paid-up capital under paragraph (c) of Section 9 hereof. chan robles virtual law library For the purpose of funding the gratuity mentioned in Section 29 hereof, the amount of Three hundred million pesos (P300,000,000.00), inclusive of the amount referred to above, is hereby appropriated out of any funds available and not otherwise appropriated in the National Treasury.cralaw Sec. 31. Savings Clause. — All orders, determinations, rules, regulations, permits, certificates, licenses and privileges which have been issued, made, granted or allowed to become effective by the former Postal Services Office or its predecessor, shall continue to be in effect according to their terms until modified, terminated, superseded, set aside, or repealed.cralaw No suit, action or other proceeding commenced by of against any officer in his official capacity as an officer of any division or agency of the former Postal Services Office (Bureau of Posts), the functions of which are transferred by this Act to the Corporation, shall abate by reason of this Act. In like manner, no cause of action by or against such division or agency or by or against any officer thereof in his official capacity shall abate by reason of the enactment of this Act. Causes of actions, suits, or other proceedings may be asserted or against the Corporation or such official of the Corporation as may be appropriate.chan robles virtual law library ARTICLE
VII
Sec.
32. Relationships with Other
Institutions. — (a) In the event the Corporation decides to reactivate
or reopen the Postal Savings Bank after ascertaining its financial
viability
and in response to public clamor, it shall operate such service
without,
as much as practicable, unduly competing with rural, commercial, or
universal
banks. The Corporation shall utilize the facilities of such banks
whenever
convenient and economical, under such terms and conditions as may be
agreed
between the parties concerned. chan
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(b)The
Corporation shall establish a working arrangement with the Bureau of
Customs
to facilitate the inspection, release or delivery of foreign parcels of
mail matters which may be liable for customs taxes and other import
charges.
It may organize a special unit or designate specific postal branches
for
handling such mail matters. In lieu of assigning it own personnel, the
Bureau of Customs may appoint the Corporation or delegate its customs
and
collections powers thereto, subject to some mutually agreed upon terms
and conditions, including the reimbursements of cost to the Corporation
or the payment for services based on percentage of the amount of tax
collected.chanrobles virtual law library
(c)Any local government unit may enter into contract with the Corporation for the use of the former's building, facilities, or land, either gratis or for a consideration, or for the management and operation by the local government unit of a post office or postal branch in its territory.cralaw Sec. 33. Limited Liability. — Unless otherwise declared and mutually agreed upon at the time posting, the liability of the Corporation with respect to its contractual obligations to deliver mail matters shall be limited to that amounts or values provided for by the Universal Postal Union and by international or bilateral agreements to which the Philippines is a signatory. Sec. 34. Separability Clause. — If for any reason, any section or provisions of this Act is declared to be unconstitutional or invalid, the other sections or provisions hereof, which are not affected thereby, shall continue in full force and effect.cralaw Sec. 35. Repealing Clause. — All acts, decrees, orders, executive orders, instructions, rules and regulations or parts thereof inconsistent with the provisions of this Act are repealed or modified accordingly. chan robles virtual law library All franking privileges authorized by law are hereby repealed, except those provided for under Commonwealth Act No. 265, Republic Acts Numbered 69, 180, 1414, 2087, and 5059. The Corporation may continue the franking privilege under Circular No. 35 dated October 24, 1977 and that of the Vice President, under such arrangements and conditions as may obviate abuse or unauthorized use thereof. Sec.
36. Effectivity. — This Act shall
take effect thirty (30) days after its approval and publication in the
Official Gazette.
Approved:
April
3, 1992
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