ORDER OF THE NATIONAL AGENCY OF INFORMATION RESOURCES, TECHNOLOGIES AND BONDS OF THE KYRGYZ REPUBLIC

of December 8, 2005 No. 68-pr

About approval of the Method of calculation of rates for the services of mail service which are subject to state regulation

In pursuance of the Order of the Government KR of May 2, 2003 No. 260 "About condition and perspectives of development of the state mail service of the Kyrgyz Republic" and based on the Laws of the Kyrgyz Republic "About electric and mail service", "About the natural and permitted monopolies in the Kyrgyz Republic", and also for the purpose of streamlining of calculations of cost on services of mail service,

I ORDER:

1. Approve the Method of calculation of rates for the services of mail service which are subject to state regulation.

2. To send to management of technical, tariff and anti-monopoly regulation the above-stated regulatory legal act to the Ministry of Justice of the Kyrgyz Republic on state registration.

3. To the head of department of technical, tariff and anti-monopoly regulation (Saadakbayeva A. K.) after state registration and the subsequent official publication of this order to bring this order to contractors.

4. This order becomes effective after registration in the Ministry of Justice of the Kyrgyz Republic and the subsequent official publication.

5. Acting head of department of tariff regulation (Starokozheva A. N.) after official publication of this order to inform the Ministry of Justice of the Kyrgyz Republic on source of its publication.

6. To impose control of execution of this order on the head of department of technical, tariff and anti-monopoly regulation (to Saadakbayev A. K.).

Approved by the order of the Chairman of the National agency of information resources, technologies and bonds of the Kyrgyz Republic of December 8, 2005 No. 68-pr

Method of calculation of rates for the services of mail service which are subject to state regulation

Introduction

Before world post system including before operators of mail service of the Kyrgyz Republic, there are diverse and complex challenges of maintenance and development of network of mail service in modern conditions of constantly increasing competition.

At the same time mail shall keep universal set of services and provide their availability to all categories of consumers.

For this purpose it is necessary to know not only total costs of the operator of mail service, but also expenses on representation of each competitive service that will allow to determine the actual cost of its provision.

This technique, making use of the international experience of determination of rates for services of mail service, is based on modern approach to the cost accounting and on more detailed analysis of processes of provision of services, including methods of transportation of mail. Engineering procedures (with pooperatsionny provision of the works included in each stage) became the basis for carrying out research of labor costs on processing of mailings.

Labor costs were the determining factor in case of cost allocation and determination of rates for services of mail service.

The structure of the costs creating rates is determined according to the Provision "About Procedure for Determination of the Prices (Rates) for Goods (Works, Services) the Business Entities Regulated by the State" approved by the Order of the Government KR of July 17, 2003 No. 445.

1. Development of engineering procedures of provision of services of mail service

First of all, in case of cost determination of services of mail service, it is necessary for each service to consider engineering procedures of its provision and the organization of stages of passing.

These stages include national sites (national prolongation) and the international sites. And the number of the international sites can change from two (if have general border, i.e. on the international line there is place of the international post exchange (PIPE) and the Item of the international post exchange (IIPE) in each country) and more (if there is no general border between the countries, and transit transportation of mail through the international sites of the third countries is necessary). (fig. 1.2.).

In fig. 1.1. - 1.3. schemes of engineering procedures of provision of services which determine costs for the services of mail service of the international mail service including the scheme of passing of the mailing across the territory of the Kyrgyz Republic are provided.

Engineering procedures (with pooperatsionny representation of the works included in each stage), are the basis for carrying out research of labor costs on accomplishment of any stage, transaction, or on complete processing of the mailing as labor costs are the determining factor for calculation of cost of services of mail service.

2. Features of determination of rates for services of mail service

The problem of determination of rates in post industry has number of the features caused by production engineering procedure of rendering services.

The network structure of creation and centralization of management within the country is characteristic of mail service that is reflected in the single Postal regulations regulating production process on transfer of departures in the countries, and also in world situations on the organization of post exchange.

At the same time the service is considered provided only when the mailing passed all stages of transfer from the sender to the consumer, including acceptance, processing, transportation and delivery. Besides, in the course of provision of the international services of mail service the Post Administrations and the organizations of several countries performing processing, transportation and delivery of mailings take part. It predetermines implementation of calculations for the executed amounts of works between all participants of complete production process of provision of services and creates problem of determination of rates.

Features of engineering procedure of provision of services of mail service cause need of the choice of object of tariffing: or on types of service (letters, sending, transfers, etc.), or on processing stages of mailings (proceeding, entering, transit), or on the enlarged technological stages of provision of service ("hospital" and "line"), or in a complex to consider the specified features. Besides, certain types of service include different types of mailings (for example, written correspondence includes letters, postcards, parcels post, small packets), different methods of transportation (air transportation and transportation by different types of the land transport) and their value (simple, custom, with the announced value).

The services of mail service rendered in country limits and also to the countries of near (CIS) and foreign countries, are organized in a complex in the single engineering procedure including stages of acceptance, processing, transportation and delivery.

Features of different stages of engineering procedure of acceptance, processing, transportation and delivery of services of mail service provide different units of measure. So, the international written correspondence in the post companies is considered by the proceeding, entering and transit departures in different units of measure in quantitative (in pieces) and in weight (in kg), or only in kg with the subsequent transfer in quantity. In the organizations transporting account of written correspondence is kept only in weight measurement (kg). Therefore in case of determination of rates it is necessary to choose unit of measure which is applied in all organizations.

3. General provisions of methodical approach to calculation of rates for services of mail service

The service of mail service is understood as the result of productive activity of several (or one) operators (organizations) of mail service including separate stages of engineering procedure from the sender to the receiver: acceptance, processing (at the proceeding, entering or transit stages), transportation (the land or aircraft transport) and delivery of the mailing.

It is necessary for determination of rates for services of mail service:

1. To divide total costs into production of the telecom operator performing certain stages of engineering procedure on provision of services of mail service in financial accounting on types of activity (fig. 1.4.):

- the main production where the costs connected with rendering post services are considered;

- auxiliary production - production of types of products and services for providing the main activities (transport division, repair economy, etc.);

- production of non-core products and services for post operators (trade in goods of nonbasic activities, etc.);

- the general running costs connected with content and servicing of the operator of mail service.

The expenses connected with content and servicing of structural division (branch) are other general production expenses and belong to the article "General running costs", and the expenses connected with content of management personnel belong to the article "Administrative expenses".

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