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Republic of the Philippines DATE: 2UN 01
HOUSE OF REPRESENTATIVES {= rrr.
‘Quezon City \ x TIMEs_Te" &
EIGHTEENTH CONGRESS \ BY: pale BS
First Regular Session C. <<
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House Bit no. _°888

Introduced By Representative ALLAN BENEDICT S. REYES

EXPLANATORY NOTE

The Philippine Postal Corporation (“PhilPost’) plays a significant role in Philippine
society. The delivery of letters and other mail matters is a basic and strategic public utility
which the State is mandated to provide. Thus, the “collection, sorting, storage, transporting,
and delivery thereof must be done with utmost dispatch in the most economical, reliable
and secure manner.”

Now, more than ever, Filipinos need the services of PhilPost. As we transition to the
so-called “new normal" during the COVID-19 pandemic, mail services, logistics and
warehousing, postal payment and retail services play an even more important role in the
lives of every Filipino, especially those who live in far-flung areas. While there are private
enterprises offering similar services, it is only PhilPost that has a nationwide postal
operation with a network that extends or makes available, at least ordinary mail service, to
any settlements in the country.*

Under its present Charter, PhilPost has the power to “offer a wide array of postal
services other than ordinary mail and parcels, which, however, shall not be compulsory,
discriminatory nor unfairly competing with similar private enterprises, such as money order,
parcel post, postal savings bank, philatelic, and other types of services which are
intemationally accepted as part of postal business.” Moreover, PhilPost is also empowered
to adopt and promulgate such rules and regulations as would improve the postal system in
be coven a promot mee revit apne tae 7364 or the Postal Service Act
of 1992.

‘Over the years, however, we have witnessed the inability of PhilPost to address the
threats from and opportunities created by digitalization and electronic competition. Hence,
most Filipinos resort to private enterprises offering the same, if not more value-adding,
services. For instance, some technology-driven business solutions providers today offer on-
demand courier services with real-time tracking wherein one’s parcel will get picked up
immediately and delivered right straight to the recipient.

‘Scetion 3, Republic Act No, 7354 An Act Creating the Philippine Postal Corporation, Defining Tes Powers,
Providing for Regulation of the Industy and for Other Purposes Connected
‘Postal Service et"), Apel 1992.
2 Section 5 (0), Postal Service et.
* Section 6 () (2), Postal Service Act.

Page 1 of S

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Unfortunately, however, there has been a proliferation of unregulated couriers in the
country, many of which have allegedly been duping customers of millions of pesos in
undelivered items, including money.* The government has difficulty tracking down these
illegal activities, but especially now that the country is under a crisis, such unscrupulous
acts cannot, and should not, be tolerated.

‘One way to address this problem is to entice customers to avail instead of PhilPost’s
services. If PhilPost can offer its services with the same efficiency and productivity as
Private couriers, then there will be no need for our Kababayans to resort to other service
providers, whether duly registered or not. In the case of government offices and agencies,
improvement in the services of PhilPost will also naturally redound to more efficient
operations and better public service.

In fact, one of the mandated functions and responsibilities of PhilPost is “to
determine and dispose of, in a manner it deems most advantageous, with law and settled
jurisprudence, confiscated or non-mailable mail matters, prohibited articles. dead letters
and undelivered mails, except the sale of prohibited drugs, dangerous materials, and other
banned articles as defined by law.” Hence, unlike private couriers, delivery of services
through PhilPost provides an additional safety feature that is necessary during these trying
times. With mails and parcels leaving digital footprints through PhilPost, the government
can more effectively monitor the flow of products across the regions and the prompt
delivery of essential goods throughout the country is guaranteed.

Lack of funding, however, prevents PhilPost from meeting varying customer
demands as well as gaining the flexibility to continually adjust to the ever-changing
business environment. Hence, there is an urgent requirement to reform PhilPost to enable it
to compete effectively and respond with more timely innovations. For this purpose, PhilPost
must be given the financial and technical capacity to adopt automated processes, route re-
optimization, and facilty/infrastructure modernization initiatives that effectively address

customer demands.
In view of the foregoing, passage of this bill is earnestly sought.

Our a

HON. ALLAN BENEDICT. REvEs OY"
Representative
3” District, Quezon City

‘ Rosari, Ben, Atienza bares some on-demand delivery, courier services firms operating without got permits
available 3t se 19/11/18 rie services-Firms
Pperating-withvangontepermite/ (ast accessed 12 May 2020),

‘Sect 5(€), Postal Service Net

Page 2 of 5

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. __ 5888

Introduced By Representative ALLAN BENEDICT S. REYES

EXPLANATORY NOTE

The Philippine Postal Corporation (“PhilPost’) plays a significant role in Philippine
‘society. The delivery of letters and other mail matters is a basic and strategic public utility
which the State is mandated to provide. Thus, the “collection, sorting, storage, transporting,
and delivery thereof must be done with utmost dispatch in the most economical, reliable and
secure manner."!

Now, more than ever, Filipinos need the services of PhilPost. As we transition to the
so-called “new normal” during the COVID-19 pandemic, mail services, logistics and
warehousing, postal payment and retail services play an even more important role in the lives
of every Filipino, especially those who live in far-flung areas. While there are private
enterprises offering similar services, it is only PhilPost that has a nationwide postal operation
with a network that extends or makes available, at least ordinary mail service, to any
settlements in the country.?

Under its present Charter, PhilPost has the power to “offer a wide array of postal
services other than ordinary mail and parcels, which, however, shall not be compulsory,
discriminatory nor unfairly competing with similar private enterprises, such as money order,
parcel post, postal savings bank, philatelic, and other types of services which are
internationally accepted as part of postal business.”? Moreover, PhilPost is also empowered
to adopt and promulgate such rules and regulations as would improve the postal system in
the country or implement the provisions of Republic Act No. 7354 or the Postal Service Act
of 1992.

Over the years, however, we have witnessed the inability of PhilPost to address the
threats from and opportunities created by digitalization and electronic competition. Hence,
most Filipinos resort to private enterprises offering the same, if not more value-adding,
services. For instance, some technology-driven business solutions providers today offer on-
demand courier services with real-time tracking wherein one's parcel will get picked up
immediately and delivered right straight to the recipient.

1 Section 3, 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
hereinafter, “Postal Service Act”), 30 April 1992.

2 Section 5 (d), Postal Service Act.

: Section 6 (6) (g), Postal Service Act.

Page 1of 5


Unfortunately, however, there has been a proliferation of unregulated couriers in the
country, many of which have allegedly been duping customers of millions of pesos in
undelivered items, including money.* The government has difficulty tracking down these
illegal activities, but especially now that the country is under a crisis, such unscrupulous acts
cannot, and should not, be tolerated.

One way to address this problem is to entice customers to avail instead of PhilPost's
services. If PhilPost can offer its services with the same efficiency and productivity as private
couriers, then there will be no need for our Kababayans to resort to other service providers,
whether duly registered or not. In the case of government offices and agencies, improvement
in the services of PhilPost will also naturally redound to more efficient operations and better
public service.

In fact, one of the mandated functions and responsibilities of PhilPost is “to determine
and dispose of, in a manner it deems most advantageous, with law and settled jurisprudence,
confiscated or non-mailable mail matters, prohibited articles, dead letters and undelivered
mails, except the sale of prohibited drugs, dangerous materials, and other banned articles as
defined by law.”® Hence, unlike private couriers, delivery of services through PhilPost
provides an additional safety feature that is necessary during these trying times. With mails
and parcels leaving digital footprints through PhilPost, the government can more effectively
monitor the flow of products across the regions and the prompt delivery of essential goods
throughout the country is guaranteed

Lack of funding, however, prevents PhilPost from meeting varying customer demands
as well as gaining the flexibility to continually adjust to the ever-changing business
environment. Hence, there is an urgent requirement to reform PhilPost to enable it to compete
effectively and respond with more timely innovations. For this purpose, PhilPost must be
given the financial and technical capacity to adopt automated processes, route re-
optimization, and facility/infrastructure modernization initiatives that effectively address
customer demands.

In view of the foregoing, passage of this bill is earnestly sought.

HON. ALLAN BENEDICT S. REYES
Representative
3 District, Quezon City

Ben. Atienza bares some on-demand delivery, courier services firms operating without gov't permits available

‘without-govt-permits/ (last accessed 12 May 2020).
5 Section 5(¢), Postal Service Act.

Page 2 of 5


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL. No. _°888

Introduced By Representative ALLAN BENEDICT S. REYES

AN ACT MODERNIZING THE PHILIPPINE POSTAL CORPORATION AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled

SECTION 1. Short Title. - This Act shall be known as the “PhilPost Modernization

Post.”

SECTION 2. Policy and Objectives. - The delivery of letters and other mail matters

is a basic and strategic public utility which the State shall provide, directly or indirectly
through, and/or with sorting, 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.°

The State shall pursue the following objectives of a postal system:
a) to enable the economical and speedy transfer of mail and other postal matters, from
sender to addressee, with full recognition of their privacy or confidentiality;
b) to promote international interchange, cooperation and understanding, through the
unhampered flow or exchange of postal matters between nations;
c) to cause or effect a wide range of postal services to cater to different users and
changing needs, including but not limited to, philately transfer of monies and
valuables, and the like;
to ensure that sufficient revenues are generated by and within the industry to
finance the overall cost of providing the varied range of postal delivery an
messengerial services as well the expansion and continuous upgrading of service
standards by the same.”

d)

Section 3, Postal Service Act.
Ia

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SECTION 3. Application of Information and Communications Technology. — In
accordance with international standards, PhilPost shall utilize information and
communications technology to enhance its services and to support a cost-effective and
efficient post office operations. PhilPost shall communicate, exchange and process
information in the national and regional level for the efficient and prompt delivery of
services in a technology-neutral and secured infrastructure for business, industries, and
government. It shall keep an updated database of the entire population of the country.

The security of data and communication of and processed by PhilPost shall be in a
manner that is consistent with Republic Act 10173 or the Data Privacy Act of 2012, other
laws, rules and regulations, and applicable local and internationally accepted standards
on information security.

SECTION 4. Prioritization. — Delivery of mails by PhilPost shall be based on
priorities such as vital communications and parcels containing medicines, items containing
goods/perishable items, items from SSS, GSIS and other public and private institutions
containing pensions, checks/loans, etc.® It shall adopt technology-driven business
solutions and offer on-demand courier services with real-time tracking features.

SECTION 5. Modification to Reduce Health Risks. - The current mail delivery
procedures of PhilPost shall be modified to reduce health risks and conform to social
distancing guidelines as may, from time to time, be issued by the appropriate government
agencies. Whenever practicable, the requirement for physical signature shall be waived
and customers shall be asked to stand back or close screen doors when mail is being
delivered to residences and businesses.

SECTION 6, Main Delivery Service Provider of the Government. — Subject to the
franking privileges authorized by law and under such arrangements and conditions as
may obviate abuse or unauthorized use thereof,® PhilPost shall serve as the main delivery
service provider of government offices and agencies.

SECTION 7. Commission on Information and Communications Technology. - The
Philippine Postal Corporation shall continue to be attached to the Commission on

Post Office Operational Updates dated. «= «4 April += 2020 available at
https://www.phipost.gov.ph/advisory,php?id=82 (last accessed 12 May 2020).

’ ‘See Section 35, Postal Service Act subject to the ruling of the Supreme Court in The Philippine Judges Association

vy. Prado, G.R. No. 105371, 11 November 1993, the dispositive portion of which reads as follows:

ACCORDINGLY, the petition is partially GRANTED and Section 35 of RA. No. 7354 is declared
UNCONSTITUTIONAL. Circular No. 92-28 is SET ASIDE insofar as it withdraws the franking privilege from
the Supreme Court, the Court of Appeals, the Regional Trial Courts, the Municipal Trial Courts, the Municipal
Circuit Trial Courts, and the National Land Registration Authority and its Registers of Deeds to all of which offices
the said privilege shall be RESTORED. ‘The temporary restraining order dated June 2, 1992, is made permanent.
SO ORDERED.

Page 4 of S


WOIYAHEWNH

Information and Communications Technology (“CICT’).'° The said Commission shall
review and revise the existing rules and regulations of PhilPost for the modernization of a
nationwide postal system pursuant to this Act."

SECTION 8. Implementing Rules and Regulations. — Within sixty (60) days from
the promulgation of this Act and in a manner not inconsistent with the Section immediately
preceding, the necessary rules and regulations for the proper implementation of the
provisions of this Act shall be formulated by other appropriate government offices or
agencies in coordination with the CICT and all stakeholders.

SECTION 9. Appropriations — In addition to the funds mentioned under Republic
Act 7354, there is hereby appropriated from the general funds in the National Treasury
not otherwise appropriated the sum of Five Hundred Million Pesos (Php 500,000,000.00)
or so much thereof as may be necessary to carry out the purposes of this Act, to cover
the salaries, wages, purchase of computers, motor vehicles, supplies, equipment, and
other sundry expenses of PhilPost.

The amount appropriated herein shall be carried in the General Appropriations
Acts, chargeable to the Department of Information and Communication Technology, for
succeeding fiscal years.

SECTION 10. Repealing Clause. — All laws, executive orders, administrative
orders, rules, regulations, decrees, and other issuances or parts thereof, which are
inconsistent with the provisions of this Act are hereby revoked, repealed, or modified
accordingly.

SECTION 11. Separability Clause. — If any provision of this Act is held
unconstitutional or invalid, the other provisions not affected thereby shall continue in
operation and remain in full force and effect.

SECTION 12. Effectivity Clause. — This Act shall take effect fifteen (15) days after
its publication the Official Gazette or in the two (2) national newspaper of general
circulation.

Approved,

bad Sections 3, Executive Order No. 269, series of 2004, Creating the Commission on Information and
‘Communications Technology [hereinafter, “E.O. 269”, 12 January 2004.
11 Sections 4(k), E.O. 269.

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