PART 2: FUNCTIONS, POWERS, OBLIGATIONS AND RESERVED SERVICES

 Division 1: Functions

Functions  

  1. The functions of the corporation are:

    (1) to provide postal services within Bhutan and between Bhutan and other countries;

    (2) to carry on any business or activity relating to postal services;

    (3) to carry on any business or activity which is incidental to those mentioned in sub-sections (1) and (2) above.

Division 2: Obligations

Obligations – Commercials

  1. The corporation shall operate in a manner consistent with sound business practice.

 

Obligations – Community Service

  1. The corporation shall provide a basic letter within and outside Bhutan:

    (1) that is reasonably accessible to all people in Bhutan;

    (2) at a single uniform rate of postage for standard letters conveyed within Bhutan;

    (3) at performance standards which reasonably meet the social, industrial and

    (4) at the lowest price consistent, with meeting all of the costs of providing the basic letter service and contributing towards the financial objectives in sections 62 and 63.

Obligations – General Governmental

 

  1. The corporation shall perform its functions in a manner consistent with:

    (1) any general policies of the government which have been notified by the Minister;

    (2) any obligations of Bhutan under any international convention.

 

Division 3: Powers

 

General Powers

  1. The corporation has the power to do all things necessary and convenient to be done for the performance of its functions.

Specific Powers

  1. Without limiting the generality of section 12, the corporation has the power to:

    (1)to determine the prices of all its goods and services;

    (2) to produce postage stamps and authorize others to produce postage stamps on its behalf;

    (3) to determine terms and conditions for the provision of any postal service or goods;

    (4) to determine terms and conditions of employment of its staff;

    (5) to sue and be sued;

    (6) to enter into contracts and agreements, including franchising agreement;

    (7) to appoint agents or attorney and act as an agent for other persons;

    (8) to acquire, hold, lease, develop and dispose of real and persona property;

    (9) to form, and participate in the formation of companies;

    to participate in partnerships, trusts, unincorporated joint ventures and other arrangements for the sharing (10) of profits;

    (11) to borrow from the financial institutions in Bhutan, and to give security over assets and pay interest on loans;

    (12) to invest money not immediately required for postal purposes;

    (13) to install posting boxes on public land and buildings provided that they do not interfere with the ordinary circulation of traffic;

    (!4) to provide telecommunications value added services, including, for example, electronic mail, electronic data interchange and electronic funds transfer services.

Funds May be Provided by the Government

  1. The Ministry for Finance may, on behalf of the government, provide the corporation equity for capital expenditure.

Powers in a state of Emergency

  1. For the duration of a state of emergency which has been declared under the National Security Act. The Head of State shall have the power to:

    (1) suspend the operation of the postal service in any part or all Bhutan, or to any country;

    (2) authorize any person to perform postal services;

    (3) require the corporation to perform services as directed.

 

Division 4: Reserved Services

Reserved Services

  1. The corporation shall have the exclusive right:

    (1) to convey the standard letters within Bhutan and between Bhutan and places outside Bhutan subject to section 17;

    (2) to issue postage stamps.

Exclusions to Reserved Services

 

  1. The services reserved to the corporation do not include:

    (1) the carriage of a letter relating to goods that is sent and delivered with the goods;

    (2) the carriage of catalogues and leaflets relating to goods that is sent and delivered with the goods;

    (3) the carriage of a letter otherwise than for reward;

    (4) the carriage of a letter for which a charge in excess of ten times the basic rate of postage for a standard letter within Bhutan has been made;

    (5) the carriage of a letter by the sender or an employee of the sender;

    (6) the carriage of a letter on behalf of the corporation under an agreement with it;

    (7) letters carried to or from the nearest or most convenient post office.