MEMORANDUM OF UNDERSTANDING BETWEEN THE POSTAL ADMINISTRATIONS
OF CANADA AND OF TAIWAN CONCERNING INTERNATIONAL XPRESSPOST (EMS
)
ARTICLE 1
Object of Understanding
1.The Service established by this Memorandum of Understanding ("
MOU") between Canada Post Corporation ("CPC"), and the Chungh-
wa Post Co. Ltd., is that of an EMS type service, as defined
by Article 61 of the Universal Postal Convention (Beijing 1999
). The product, consisting of documents and merchandise, will
be marketed as "Xpresspost-International" in Canada and as "
EMS" in Taiwan.
2.The Service, as defined in Article 1(3) will be for Xpresspost
-International items from Canada destined for delivery in Tai-
wan and for EMS items from Taiwan destined for delivery in Ca-
nada.
3.Origin Operator means the postal administration where the ite-
ms originate. Delivery Operator means the postal administrati-
on that ensures the delivery.
4.During the term of this MOU, the Delivery Operator will provi-
de an EMS type service for the receipt, customs clearance, so-
rting and delivery of these EMS items (the "Service").

ARTICLE 2
Documents and Merchandise
Unless otherwise expressly provided in this MOU, EMS items will
consist of documents or merchandise. These items may have a com-
mercial value and may be subject to duties and other import reg-
ulations in the country of destination.

ARTICLE 3
Customs Clearance and Prohibited Shipments
1.In accordance with Article 108 of the Details of Implementati-
on, the Delivery Operator will make all arrangements necessary
for the expeditious customs clearance of the EMS items receiv-
ed from the Origin Operator.
2.The Delivery Operator will collect from the addressees the cu-
stoms duty and all other charges that may be applicable.
3.The prohibitions provided for in Article 25 of the Universal
Postal Convention (Beijing 1999) shall apply to EMS items, as
shall the restricitions on importation and transit given in
the List of Prohibited Articles published by the International
Bureau of the Universal Postal Union. Valuable articles as de-
fined by the Universal Postal Convention (Beijing 1999) shall
not be admitted. The Delivery Operator will advise the Origin
Operator of any further particularities or customs restrictio-
ns.

ARTICLE 4
Limits of Size and Weight
1.Size to Taiwan: Packages may not exceed the following:
Length: 1.50 meters
Length + circumference: 3 meters

Size to Canada: Packages may not exceed the following:
Length: 2 meters
Length + circumference: 3 meters
2.Weight: 30kg.

ARTICLE 5
Compensation
1.Terminal Dues as defined in the Universal Postal Convention
shall not apply to EMS items.
2.In accordance with Article 113 of the Details of Implementati-
on, the Delivery Operator will collect from the Origin Operat-
or a charge for each EMS item received, as compensation for
the Service, Chunghwa Post will charge a single blended rate
of 6 SDR per item, and Canada Post will charge a single blend-
ed rate of 6 SDR per item.
3.Modifications of the charge may be made as follows:
(a) The Delivery Operator may increase its charge when such an
increase is necessary due to an increase in the costs of the
Services.
(b) To be applicable, such modification of the charge must:
(i) be communicated to the Origin Operator at least 3 months
in advance;
(ii) remain in force for at least one year, unless this Mem-
orandum of Understanding is terminated or annulled;
(iii) become effective on the first of January following the
notification to the Origin Operator pursuant to Artic-
le 5 (b)(i).

ARTICLE 6
Liability
1.Each Operator decides its own compensation policy in the case
of loss, damage, theft or delay. Payment of compensation to
the customer is to be the sole responsibility of the Origin
Operator. Neither Operator shall hold the other responsible
for indemnification, therefore Article 111 and 112 of the Det-
ails of Implementation are not applicable to this MOU.

ARTICLE 7
Undeliverable Items
1.Subject to Article 110 of the Details of Implementation, an
EMS item refused by the addressee or an undeliverable EMS item
shall be returned by the Delivery Operator to the Origin Oper-
ator by return EMS dispatch exempt.

ARTICLE 8
Re-forwarding of Missent Items or Bags
1.Every missent EMS item or bag shall be re-forwarded to its pr-
oper destination by the Delivery Operator using the most expe-
ditious direct means, with the Origin Operator being billed
for the appropriate resulting charges.
2.The Delivery Operator shall notify the Origin Operator by CN
43 Verification Note sent by facsimile of the details concern-
ing the arrival and redirection of each EMS item or bag misse-
nt.

ARTICLE 9
Treatment of Items Wrongly Accepted
1.When an EMS item containing an article prohibited under Artic-
le 3 (3) has been wrongly admitted to the post, the prohibited
article shall be dealt with according to the legislation of
the country of destination.
2.When the weight or the dimensions of an EMS item exceeding the
limits established under Article 4 was wrongly accepted by the
Origin Operator, and the regulations of the Delivery Operator
do not permit delivery, it shall be returned to the Origin Op-
erator in accordance with Article 7 (1).
3.When wrongly admitted item is neither delivered to the addres-
see nor returned to origin, the Origin Operator shall be info-
rmed how the item has been dealt with and of the restriction
or prohibition which required such treatment. The E 2 Verific-
ation Note may be used for that purpose which shall be sent by
facsimile to the Origin Operator.

ARTICLE 10
Inquiries by Origin Operator
1.When the Origin Operator makes an inquiry to the Delivery Ope-
rator, the Delivery Operator shall reply as soon as possible
but no later than two (2) business days following receipt of
the inquiry by the appropriate office. When the Origin Operat-
or requests proof of delivery (POD) information, the Delivery
Operator shall provide a copy of the delivery sheet and/or si-
gnature within five (5) days of the receipt of the request.
2.If the Delivery Operator cannot provide a reply within 30 days
of the receipt of the inquiry, the EMS item shall be consider-
ed lost and the Delivery Operator held liable in accordance
with Article 111 of the Details of Implementation.
3.The reply shall normally be sent by the same means as that us-
ed for the inquiry.
4.Inquiries shall be accepted only within a period of ninety (90
) days from the date on which the EMS item was posted.

ARTICLE 11
Reporting Requirements
1.The Delivery Operator who has a tracking system will record in
electronic form and transmit to the Origin Operator via the
GEIS network the tracking event data specified in Article 109
of the Details of Implementation. The Delivery Operator will
provide the tracking event data manually if they cannot provi-
de the data in electronic form.

ARTICLE 12
Quality Control and Improvement
1.The Origin Operator and the Delivery Operator shall make every
possible effort to improve their achievement of service stand-
ards as established in the EMS Operating Guide, including mai-
ntaining a program of quality control.
2.The Delivery Operator shall cooperate with Origin Operator wh-
en conducting quality control testing of the Service being re-
ndered by the Delivery Operator.

ARTICLE 13
Temporary Suspension of Service
1.Where justified by extraordinary circumstances, a Delivery Op-
erator may temporarily suspend the Service. The Origin Operat-
or shall be immediately informed of such suspension and of the
resumption of the service, by facsimile, telephone or by other
means.

ARTICLE 14
Application of the Universal Postal Convention
1.The Universal Postal Convention (Beijing 1999) and its Letter
Post and Parcel Post regulations shall be applicable by analo-
gy in all cases not expressly governed by this MOU and its De-
tails of Implementation.

ARTICLE 15
Entire Agreement
1.This MOU and its Details of Implementation supersede all prior
EMS agreements, arrangements and undertakings between the par-
ties and constitute the entire agreement between the parties
for the provision of the Service. Any prior understanding or
representation of any kind between the parties preceding the
date of this Agreement shall not be binding upon either party
except to the extent incorporated in this Agreement.

ARTICLE 16
Amendments
1.This MOU and its Details of Implementation may be modified by
mutual agreement on the basis of an exchange of letters, to
which the text of the modified paragraph (s) is annexed.

ARTICLE 17
Effective Date and Duration of the Memorandum of Understanding
1.This MOU takes effect on 30 June 2003.
2.This MOU may be terminated with or without cause by either of
the parties to this MOU, by providing three (3) months previo-
us written notice to the other party.

ARTICLE 18
Usage of marks
1.Unless specifically provided for in this MOU, Chunghwa Post
will not use the mark Xpresspost-International or any other
trademark, tradename or other official mark of Canada Post Co-
rporation without obtaining prior written consent from Canada
Post Corporation.

ARTICLE 19
Details of Implementation
1.The Details of implementation attached to this MOU form an in-
tegral part of the MOU.

ARTICLE 20
Confidentiality
1.Neither the Origin Operator or the Delivery Operator shall di-
sclose to a third party the content of this MOU without obtai-
ning the prior written consent of the other operator.

ARTICLE 21
Calendar days
1.In the MOU and the Details of Implementation, reference to da-
ys shall mean calendar days unless otherwise expressly stated.

For Chunghwa Post For Canada Post Corporation

Huang Shui- cheng Patrick Bartlett
General Manager General Manager, International
Product Management

April 9, 2003 May 12, 2003
Date Date


DETAILS OF IMPLEMENTATION OF THE MEMORANDUM OF UNDERSTANDING BE-
TWEEN THE POSTAL ADMINISTRATIONS OF CANADA AND OF TAIWAN CONCER-
NING INTERNATIONAL XPRESSPOST(EMS)

ARTICLE 101
Information to be Supplied
1.Information to be supplied by the Origin Operator:
(a) a list of labels and documents which will be used:
(b) the name of the product in the country of origin.
2.Information to be supplied by the Delivery Operator, if not
contained in the UPU EMS Operational Guide:
(a) a list of locations not covered by the Delivery Operator;
(b) the name(s) and address of the offices of exchange to which
the items may be sent;
(c) the latest times of acceptance of an item at the offices of
exchange for it to be delivered within the prescribed time
frames;
(d) the delivery standards;
(e) the amount requested as compensation for the handling and
delivery costs.
3.Any changes in the above information shall be communicated at
least one month before implementation, except for paragraph 2
(e) above, which shall be in accordance with Article 5 of the
MOU.

ARTICLE 102
Special Address / Shipping Label
1.The Origin Operator will ensure that the items sent bear the
EMS logo for easier service identification by the Delivery Op-
erator.
2.The Origin Operator will provide on the label and other postal
documentation the following delivery and, where appropriate,
customs clearance information, in roman letters and arabic fi-
gures:
(a) the name and complete address of the sender;
(b) the name and complete address of the addressee;
(c) the description of the contents, including the harmonized
code where possible;
(d) the declared value of the goods, where applicable;
(e) the weight in kg;
(f) the postage rate;
(g) the telephone of the sender and addressee when known;
(h) the name of the service and the name of the Origin Operator;
(i) the 13-character EMS alphanumeric identifier in bar code fo-
rm, using code 39 or code 128, and the corresponding human
readable block characters;
(j) date sent.
3.The Delivery Operator will provide the following information
on the label:
(a) date and time delivered;
(b) recipient's signature and printed name.

ARTICLE 103
Packing Requirements
1.Each EMS item shall be packed and closed in a manner befitting
the weight, the shape and the nature of the contents as well
as the mode and duration of conveyance.
2.Each EMS item shall be packed and closed so as not to present
any danger to officials called upon to handle it, or to soil
or damage other mail or postal equipment.
3.Each EMS item shall have, on its packing or wrapping or on a
durable separate label firmly attached to it, sufficient space
for service instructions and for affixing labels.

ARTICLE 104
General Conditions of Dispatch
1.The EMS items shall be placed in blue and orange EMS bags whe-
never possible, otherwise, blue bags shall be used with a blue
and orange EMS label affixed to it.
2.Each bag, whether blue and orange EMS bags or blue bags, shall
be attached with a label CN35 EMS with a blue and orange tag
and an indication of the gross weight. The exchange office of
destination will also be clearly shown.
3.The EMS items contained in the above noted bags shall be indi-
vidually listed on the CN33 EMS Special List, which shall be
put in each bag containing the corresponding listed items. In
addition, a CN31 EMS Letterbill shall be completed and includ-
ed in the final bag.
4.To Origin Operator shall dispatch EMS items with UPU subclass
EN: "EN EMS - MIXED"
5.The Origin Operator shall dispatch EMS items to Canada using
the following IMPC codes: CAYVRA, CAYTOA, and CAYMQA.

ARTICLE 105
Delivery Bills
1.Each EMS dispatch shall be sent with a Delivery Bill CN 38,
which may include LC, AO and CP mail categories.
2.The weight and total number of bags in each EMS dispatch shall
be indicated on the delivery bill.

ARTICLE 106
Checking of EMS items
1.On receipt of the EMS dispatch, the Delivery Operator shall
check whether the content is in conformity with the particula-
rs recorded on the CN 31 EMS Letter Bill, and on the CN 33 EMS
Special List.

ARTICLE 107
Notification of Irregularities
1.Subject to Articles 7,8 and 9 of the MOU, the Origin Operator
shall be notified at once by telephone or fax of any missing,
missent or damaged bag or EMS item.
The irregularity shall be confirmed in writing using the CN 4
3 EMS Verification Note to the office of exchange of the Orig-
in Operator.

ARTICLE 108
Acceleration of Customs Clearance
1.All EMS items shall be accompanied by the CN 23 Customs Decla-
ration, or the Address / Shipping Label containing the CN 23
information.
2.In accordance with Article 3 of the MOU, the Delivery Operator
shall make arrangements with customs officials to clear items
through customs as quickly as possible.

ARTICLE 109
Reporting requirements
1.In accordance with Article 11 of the MOU, the Delivery Operat-
or shall make an electronic record of each EMS item by scanni-
ng its identifier bar code at each of the following points (
references in brackets are to UPU standard tracking event mes-
sages - EMSEVT):
● Event D Arrival at inward office of exchange
● Event E Hand-over to Customs
● Event F Departure from inward office of exchange
(if possible)
● Event G Arrival at Delivery Office (if possible)
● Event H Attempted delivery (unsuccessful)
● Event I Final delivery
The Origin Operator shall transmit the PREDES message upon cl-
osing the EMS dispatch. The Delivery Operator shall transmit
the EMSEVT message and where possible the RESDES message.
2.The Delivery Operator shall also make a record indicating that
an item or its contents has been seized or detained by customs
officials or other governmental agency. This information shall
be communicated as soon as possible to the Origin Operator.
3.Records shall be kept in electronic form and based on the item
number and corresponding postal barcode on the EMS item.
4.Electronic records must be kept for 6 months. Delivery records
and recipient names or signed copies must be kept for 18 mont-
hs. Notwithstanding the preceding sentences, the Origin Opera-
tor may request that specific records be kept indefinitely, as
in cases of dispute.
5.The Delivery Operator shall transmit to the Origin Operator
the scanned events listed above within 12 hours of being scan-
ned, at least 2 times per day.
6.The Delivery Operator will be responsible for all costs assoc-
iated with the provision of these services.

ARTICLE 110
Return of Undeliverable Items
1.The standard holding period for undeliverable items shall be
no more than fifteen (15) business days.
2.When an EMS item is deemed undeliverable, the Delivery Operat-
or shall notify the Origin Operator by facsimile or other ele-
ctronic means. Unless, instructions for the further treatment
of the item is requested by the Origin Operator, the Delivery
Operator shall return the EMS item to the Origin Operator in
accordance with Article 7.
3.In the event an EMS item is returned, the Delivery Operator
shall give the reason for non-delivery on the EMS item, either
by hand, by means of a stamped impression or by a label.
4.The items returned shall be returned by EMS where there is a
reciprocal EMS service. In cases where there is no reciprocal
EMS service, items are to be returned by airmail-registered.

ARTICLE 111
Liability for Loss or Damage
1.Subject to Article 6 of the MOU, if EMS items are lost or dam-
aged while in the Delivery Operator's custody or control under
this MOU, the Delivery Operator is liable to the Origin Opera-
tor for its actual damages from that loss or damage including
the refund of any charges paid to customers. The Delivery Ope-
rator's liability shall be limited to the amount specified in
the EMS Operational Guide or otherwise agreed to in this MOU
or by exchange of correspondence between the Origin Operator
and the Delivery Operator.
2.In the event of a claim for damage, an EMS item will be presu-
med to have been damaged while in the Delivery Operator's cus-
tody or control, unless the Delivery Operator has notified the
Origin Operator that the EMS item was damaged when the item or
dispatch was tendered to the Delivery Operator.
3.In the event of a claim for loss, an EMS item shall be presum-
ed to have been lost while in the Delivery Operator's custody
if the item or dispatch is acknowledged as received by the De-
livery Operator at the time of tendering to it by the Origin
Operator. An EMS item will be presumed lost if it has not been
tendered to the addressee within four (4) weeks of its receipt
by the Delivery Operator, unless it is shown that the item had
been seized or detained by customs officials or other governm-
ental authority.
Liability for Delay
4. Subject to Article 6 of the MOU, the Delivery Operator shall
also be liable to compensate the Origin Operator for actual
expenses incurred in the refund of EMS charges to a customer
resulting from delay to any EMS item caused by any action or
failure to act by the Delivery Operator as follows:
(a) Refusal or failure to accept EMS items as specified in this
MOU;
(b) Misdirecting an EMS item to a destination other than the de-
stination to which it is addressed, unless the misdirection
is the result of directions placed on a receptacle by the
Origin Operator;
(c) Failure to tender EMS items to the addressee for delivery in
accordance with the measurable service standards defined in
the EMS Operational Guide;
(d) Failure to protect and safeguard EMS items from depredation
or other hazards while in the Delivery Operator's custody or
control including but not limited to failure to prevent una-
uthorized persons from having access to EMS items, failure
to transport EMS items on the ground or in the air in secur-
ely closed containers, or other vehicles;
(e) Failure to provide the required information pursuant to Art-
icle 11 of this MOU and Article 109 of the Details of Imple-
mentation unless it is impossible to transmit for reasons
outside the control of the Delivery Operator;
(f) Failure to respond to inquiries from Origin Operator within
the period of time specified in Article 10 of this MOU.
The Delivery Operator's liability for compensation in such
cases of delay only (without loss or damage) shall be limited
to the actual amount refunded to the customer by the Origin
Operator, and shall not in any case exceed 50 SDR per EMS it-
em.
5.A Delivery Operator's liability for loss, damage or delay whe-
ther for negligence, theft or otherwise, shall not exceed the
amount paid by the Origin Operator to the customer in full se-
ttlement of any claim. In all such cases the Origin Operator
shall provide the Delivery Operator with the amount actually
paid to the claimant. In cases where a customer's claim has
been adjudicated by an Origin Operator, the determination of
the value of the loss shall be considered final and the claim
settled.

ARTICLE 112
Claims for Loss, Damage or Delay
1.Subject to Article 6, notice of loss, damage or delay to any
EMS items must be provided in writing by Delivery Operator to
the Origin Operator within ten (10) days of becoming aware of
such loss, damage or delay.
2.Notices and claims shall include the following:
● Name and address of the sender and addressee;
● Date of shipment;
● Description of contents;
● Amount claimed;
● CN 08 Inquiry Form with complete dispatch information, ens-
uring the Serial, List and Entry numbers are provided.
3.Final claims for loss, damage or delay for which the Delivery
Operator is liable must be submitted by the Origin Operator in
writing within ninety (90) days from the date the EMS item was
considered lost, damaged or delayed.
4.The Delivery Operator shall provide the Origin Operator with
the authorized amount, including the claim authorization / re-
ference number.
5.The Delivery Operator shall settle claims from an Origin Oper-
ator within thirty (30) days from receipt of claim unless it
demonstrates that:
(a) it notified the Origin Operator that the item was damaged at
the time of receipt of the item, and was not reported within
fourteen (14) days;
(b) it notified the Origin Operator that the item was missing at
the time the dispatch supposedly containing the item was te-
ndered to it;
(c) the item or dispatch was not tendered to the Delivery Opera-
tor;
(d) the item was seized by, or is in the possession of, Customs
or other governmental agency; or
(e) in the case of a claim for loss only, that the item was rec-
eived by the addressee;
(f) in the case of a claim for delay only, that the item was de-
livered to the addressee in accordance with the delivery st-
andards published in the EMS Operational Guide.
6.If a Delivery Operator fails to reply to a claim from an Orig-
in Operator within thirty (30) days, the Delivery Operator wi-
ll be considered to have accepted the claim, and will be held
liable for compensation paid to the sender by the Origin Oper-
ator on the basis of the claim submitted.

ARTICLE 113
Accounting and Settlement of Accounts
1.The procedure for settlement of accounts shall be as follows:
(a) an invoice shall be prepared annually by the Delivery Opera-
tor, showing:
- the total number of EMS items received;
- the charge payable per item in accordance with Article 5
of the MOU;
- the total charge payable
(b) the invoice shall be prepared as soon as possible following
the last day of the calendar period to which it refers;
(c) after verifying the invoice, within thirty (30) days, the
Origin Operator returns a copy with payment to the Delivery
Operator. Should the Origin Operator wish to dispute the in-
voice, a copy of the invoice duly amended is to be returned
to the Delivery Operator within those same thirty (30) days.
If the Delivery Operator disputes the amendments, it confir-
ms the actual data by sending photocopies of the relevant
EMS manifests and notices of irregularities to the Origin
Operator. If the Delivery Operator has not received notice
of amendment or acceptance within 30 days from the date of
invoicing, the account is regarded as fully accepted.
(d) Payment shall be made as quickly as possible and at the lat-
est within two (2) months - thirty (30) days to accept, thi-
rty (30) days to pay - from the date of invoicing.

ARTICLE 114
Effective date and duration of these Details of Implementation
1.These Details of Implementation will take effect on the same
date as the MOU to which they refer.
2.These Details of Implementation and any amendments made pursu-
ant to Article 16 of the MOU, have the same duration as the
MOU.