Postal Services Policy Planning Bureau(PSPPB)

Shifting smoothly to the new corporations after the privatization (Figure)

According to the Law concerning Postal Privatization established in October 2005, Japan Post broke up on October 1 2007, thereby launching postal privatization.
The postal services rendered so far by the public corporation have been taken over by:

  • (1) Japan Post Service Co., Ltd.
  • (2) Japan Post Bank Co., Ltd.
  • (3) Japan Post Insurance Co., Ltd.
  • (4) Japan Post Network Co., Ltd. serving as the contact for those corporations
  • (5) Japan Post Holdings Co., Ltd., a holding company for those four business corporations
  • (6) Management Organization for Postal Savings and Postal Life Insurance, an incorporated administrative agency that manages the savings and insurance policies rendered before the privatization.

The PSPPB has so far done the following: (1) established the Japan Post Holdings, which makes preparations for, and plans, privatization; (2) established and revised laws related to the new corporations; (3) instructed the Japan Post Holdings to prepare the implementation plan that sets forth how to transfer the public corporation's affairs, assets, employees, and other resources to the privatized corporations; and (4) examined its appropriateness, thereby having made steady preparations for the privatization.
Privatization of postal services makes their management more voluntary, creative, and efficient and promotes fair and free competition, aiming to provide varied high-quality services, thereby increasing civic convenience and activating the economy.
Toward the realization of these principles of privatization, the PSPPB works to make the postal privatization a success.

Figure

Overview of the privatized corporations
(supplementary information)

Japan Post Holdings Co., Ltd.
This joint-stock company owns 100% of the stocks of Japan Post Service, Japan Post Network, Japan Post Bank, and Japan Post Insurance and manages these corporations.
Japan Post Service Co., Ltd.
This joint-stock company aims to do postal business and to sell revenue stamps.
Japan Post Network Co., Ltd.
This joint-stock company serves as a contact on commission from Japan Post Service, Japan Post Bank, and Japan Post Insurance and conducts business that helps bring more convenience to regional inhabitants through the use of post offices.
Japan Post Bank Co., Ltd.
Through post offices and directly managed stores nationwide, this bank renders services regarding savings, money remittance, and settlements.
Japan Post Insurance Co., Ltd.
Through post offices and directly managed stores nationwide, this life insurance company provides insurance products and services through post offices and directory managed stores nationwide.
Management Organization for Postal Savings and Postal Life Insurance, an incorporated administrative agency
This incorporated administrative agency manages the postal savings and postal life insurance policies taken over from Japan Post appropriately and securely conducts the obligations related to them.

International affairs related to postal services

In multilateral negotiations at WTO, OECD, and other international establishments and in bilateral negotiations with the USA, EU, and other countries, the PSPPB addresses projects related to postal services in Japan.
Moreover, the PSPPB: (1) discusses and establishes international agreements on international post, postal money orders, and postal money transfers; (2) attends the Universal Postal Union (UPU) and other international conferences, and (3) conducts the necessary paperwork to reflect Japanese policies on international affairs.

Correspondence delivery business

Fig. B

In line with the establishment of Japan Post in April 2003, the Law Concerning Correspondence Delivery Provided by Private-Sector Operators came into effect, thereby permitting private-sector operators to enter the correspondence delivery service market, which had so far been monopolized by the state. The purpose of this Law, together with the Postal Law, is to ensure universal service and to promote competition so that users will be offered a wider choice of services.
Correspondence Delivery business falls into two business categories; "General Correspondence Delivery business" and "Special Correspondence Delivery business." Both are subject to permission by the Internal Affairs and Communications Minister.
The PAB is in charge of granting licenses and permits regarding correspondence delivery services and otherwise supervising them.
[Correspondence delivery service operators today]
The number of operators engaged in the Special Correspondence Delivery business is steadily on the rise, totalling 253 as of March 2008.
[Considering measures to promote competition in the postal market]
Regarding the promotion of competition, a report (of June 2006) by the Study Group on Reserved Areas and Competition Policies in Postal Market proposed measures to be taken to promote the entry of private-sector operators into the General Correspondence Delivery business. Subsequently, in view of the trends (e.g. the enforcement of the Postal Reorganization Act in the USA), February 2007 saw the Internal Affairs and Communications Minister set up a Study Group to Review the Framework of the Postal and Correspondence Delivery Services. The Group is now conducting a study to comprehensively review the framework of the postal and correspondence services, taking into account the situation after the postal privatization. This Group is scheduled to sum up its discussions in June 2007, issue an interim report in October the same year, and compile a final report in June 2008.

Keyphrase

General Correspondence Delivery business and Special Correspondence Delivery business

The general correspondence delivery business is a "complete participation nationwide" type of business allowing delivery of all types of correspondence items under the condition providing a correspondence delivery service (general correspondence delivery service) on a nationwide scale which requires both of following services:

  • (1) Service to deliver correspondence items that are 40 cm (length)×30 cm (width)×3 cm (thickness) or smaller and weight 250 g or less;
  • (2) Service to deliver correspondence items that, in principle, are to be delivered within three days of being mailed.

The special correspondence delivery business is for "special services" type of business which provides one or a combination of the following correspondence delivery services (special correspondence delivery service):

  • (1) Service to deliver correspondence items that have dimensions totaling more than 90 cm (length, width and thickness) or weight over 4 kg;
  • (2) Service to deliver correspondence items that are to be delivered within three hours of being mailed: and
  • (3) Service to deliver correspondence items that bear a delivery charge that exceeds the amount specified by an ordinance of the MIC and is not less than 1,000 yen.