“Б Ъ Л Г А Р С К И П О Щ И” ЕАД

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BULGARIAN POSTS PLC

GENERAL TERMS AND CONDITIONS of contract with customers of postal services provided by Bulgarian

Posts PLC

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Sofia, 2007

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CHAPTER I

GENERAL

1. The present General Terms and Conditions of contract with customers of postal services provided by

Bulgarian Posts PLC (BP) hereinafter referred to as “The General Terms and Conditions”, cover: scope and characteristics of services; access conditions; requirement to service quality and efficiency; method of payment; conditions for acceptance and delivery of postal items and postal money orders; rights and obligations of postal operators; prohibited articles and substances; complaint and indemnification procedures; dispute solving and other essential conditions for the provision and use of postal services. Pursuant to the requirements of Art. 21 of the Postal Service Act, BP shall provide equal access of customers to its postal retail network for using postal services. Signing of individual contracts with customers is not required.

2. The parties to the contract under s.1 may negotiate additional conditions for the provision of universal postal service, for which purpose they shall enter into an individual contract of which the present General Terms and Conditions shall constitute an integral part.

3. The General Terms and Conditions shall apply to any domestic and international postal services provided by BP, including both universal and non-universal postal services.

CHAPTER II

SCOPE AND CHARACTERISTICS OF THE PROVIDED SERVICES

3.1.

The universal postal service includes the following services:

3.1.1.

acceptance, conveyance and delivery of domestic and international postal items, as follows: a) letter items

– up to 2 kilograms; b) small packets – up to two kilograms; c) direct mail – up to two kilograms; d) printed papers

– up to five kilograms; e) cecogramnmes

– up to seven kilograms;

3.1.2. acceptance, conveyance and delivery of domestic and international postal parcels

– up to twenty kilograms. The weight limits applicable to parcels originating from other countries may be higher, up to the weight limit set out in the regulations of the Universal Postal Union.

3.1.3. postal money orders;

3.1.4.

supplementary services

– “registered mail” and “insured value”;

3.1.5.

The postal items under s. 3.1.1. may be priority or non-priority items.

3.2.

The non-universal postal services include: a) acceptance of messages submitted in a physical or electronic form by the sender, transmitting them by electronic communications means and delivery of these messages to the addressee as postal items. b) courier services representing value added postal services as opposed to universal postal service and guaranteeing higher speed and reliability of acceptance, conveyance and delivery of items. The courier service comprises all or some of the following supplementary services:

collection from the sender’s address;

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delivery by a set date;

- possibility to change destination and addressee during conveyance;

- notification of the sender of the delivery of the item, (advice of delivery);

- track & trace of the items;

- customized and “a la carte” service provided to customers in the requested manner and at the requested time (“upon request” and “under contract”);

4. Domestic and international letter items, printed papers, small packets and cecogrammes can be registered or non-registered. Registered items can be with or without insured value, and domestic insured value

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items - with or without cash on delivery, as well as other services under s. 3.2.b, depending on the sender's choice.

5. Domestic and international parcels can be with or without insured value, and domestic insured value parcels - with or without cash on delivery, depending on the sender's choice.

6. The insured value under s. 4 and s. 5 shall be specified by the sender and shall correspond to the actual value of the item content.

6.1. The maximum allowed insured value of postal items is as specified by BP in “Current price list of postal services offered by Bulgarian Posts”, approved by the Communications Regulation Commission.

7.

Money orders can be postal or cable money orders or cheques, as well as money transfers from one bank account into another.

7.1. The maximum allowed amount accepted in an individual money order is as specified by BP in

“Current price list of postal services offered by Bulgarian Posts”, approved by the Communications Regulation

Commission.

8.

To international postal items and money orders the provisions of the Universal Postal Union regulations shall apply as ratified and promulgated under the established procedure.

9.

BP shall determine the design and content of the forms to be filled in upon acceptance, transport and delivery of postal items and shall ensure that they are printed and used. The forms may contain also conditions different from the General Terms and Conditions and, after having been filled in and signed by the sender and the accepting post office clerk, they shall have the effect of a contract under s.2, such as for: delivery of a parcel at the addressee

’s home address, extension of the time limits under s. 21.1, letter “b”, etc.

CHAPTER III

CONDITIONS OF ACCESS TO PROVIDED SERVICES

10.

The contract under s.1 shall be considered to be entered into when items are posted at any point of access where senders submit and the operator accepts postal items, or in a mail box mounted in a public place for collection of non-registered items, and the price of the service is paid, as follows:

10.1. For postage prepaid non-registered letter items, printed papers and small packets and cecogrammes

– upon dropping the item in BP’s mail boxes or submitting at a post office (PO), postal agency (PA) or to BP-designees.

10.2. For parcels and registered items under s. 4 – upon submitting the item at a post office, postal agency or to a BP-designee with a payment receipt issued for the postage prepaid.

10.3. For postal money orders and cheques

– upon payment at a PO of the money order amount with a payment receipt issued for the service price paid.

10.4. For cable money orders - upon payment at a PO of the money order amount with a payment receipt issued for the service price paid.

10.5. For messages transmitted by electronic communications means – upon acceptance of the message with a payment receipt issued for the service price paid.

10.6. For courier services

– upon collection of items with a payment receipt issued for the service price paid.

10.7. For direct mail

– upon submission of the items at a post office, postal agency or to BP-designees and payment of the service price.

CHAPTER IV

RIGHTS AND OBLIGATIONS OF BP

11.

BP shall provide all postal services specified in s. 3.1 though their post offices, all over the territory of the country, during the set working hours, at a standard quality level and affordable prices, ensuring that they

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are accessible to all customers. Though PA, the services under 3.1.1, 3.1.2, 3.1.4 and payment of postal money orders shall be provided.

11.1. The working hours of PO shall cover all working days

– at least 5 days in a week. The working hours of PO and PA shall be determined by BP and posted in every PO and PA, at a location accessible to all customers, as well as on the web site of BP.

11.2. Exception from the obligation under 11.1 is only allowed: a) in force majeure circumstances, such as martial law, state of war, disasters, accidents and crises, when extraordinary working hours are established. b) for difficult to access places. The places and the working days during which postal services will be available shall be determined by BP in coordination with municipality mayors in compliance with the Criteria for definition of difficult to access regions and places within them. Information of the same shall be published on the website of BP.

11.3. Services under s. 3.2 shall be provided in places and post offices determined by BP and international services may be only destined to states that have effective contracts with BP.

11.4. BP shall provide postal services to customers under equality conditions.

11.5. BP must post the General Terms and Conditions, at a prominent and accessible location, in every

PO and PA.

11.6.

BP must post, at a prominent and accessible location, in every PO and PA, instructions on: a) the technical requirements to postal items – form, size, weight, packaging, etc., as well as the addressing; b) the prices of services; c) the prohibited articles in postal items; d) the requirements for submitting international postal items subject to customs control and information of the post offices where international items subject to customs control are accepted. e) the indemnity amounts; f) the deadline for submitting complaints.

11.7.

BP shall install at publicly accessible locations mail collection boxes and cluster box delivery cabinets for collection or delivery of non-registered letter items.

12. BP shall safeguard confidentiality of correspondence,

13. BP shall deliver postal items and pay out money orders to the persons indicated by the senders following the procedure provided for in Chapter XII.

14. BP may not: a) misappropriate postal items; b) open postal items; c) take out the content of or part thereof from opened items /torn packaging items/; d) hand over a postal item to any third person aiming to examine its content; e) provide reports or information of postal items or their content, or money orders, to any third person different from the sender or the addressee, or persons authorized by them, or the competent authorities in cases provided for by law. f) inform anybody of the postal traffic between individual persons or of the content of their postal items.

15.

BP shall repack items whose packaging integrity has been compromised in order to preserve their content. The repacking shall be documented by completing a specific form. The form shall be completed by the postal clerk who has performed the repacking and by one witness, different from a postal employee, or – if no such person is present - by another postal employee. The document shall contain the names of the persons who has prepared it; date and time of repacking; post office name, type of the postal item with its weight, insured value and cash on delivery amount, place and date of submission; complete sender

’s and addressee’s addresses; detailed description of packaging appearance and item content, and possible causes of the damage. A copy of the document shall be handed over to the addressee upon delivery of the item, who may file a complaint if he or she considers that BP is responsible for the damage.

16.

Customs control and clearance of international postal items shall be performed according to the

Customs Act and the Rules of its application.

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CHAPTER V

LIABILITY OF BP

17.

BP shall owe indemnity to the sender or the addressee in the following cases: a) lost, rifled or damaged, wholly or partly, registered postal items, parcels, insured items and cash on delivery items - according to the applicable prices of NUPU; b) returned parcels where there is no justification of non-delivery

– in the amount of the applicable prices of NUPS; c) failure to comply with postal service standards according to Chapter IX; d) non-paid or underpaid amounts of domestic and international money orders.

18.

The amount of the indemnification for domestic postal items shall be as determined by BP, and for international items

– according to the regulations of the Universal Postal Union.

19.

BP shall not be liable: a) for non-registered postal items; b) for damage or destruction of registered or insured postal items caused by Force Majeure; c) if registered postal items can not be accounted for owing to the destruction of the related official records by Force Majeure; d) when the damage or destruction of the postal item has been caused by a fault of the sender or arises from the nature of the content of the postal item or its inappropriate packaging; e) for postal items containing prohibited articles or substances, if these items have been confiscated or destroyed by the competent authority because of their content according to the applicable procedure; f) when, due to incomplete or incorrect address, the portal items has been delivered to a wrong person;

g) when the sender of a registered postal item or postal money order has filed no written complaint within 6 months form the day after that on which the item was posted; h) after the postal item is taken out from the postal premises if the addressee has filed no complaint following the established procedure and in case of home delivery

– if no report has been prepared according to s.

41 of the present General Terms and Conditions. i) for delayed or undelivered items owing to incomplete or incorrect address.

CHAPTER VI

RIGHTS AND OBLIGATIONS OF CUSTOMERS

20.

The customers shall have the right to:

20.1.

Receive information through accessible means concerning: a) the technical requirements of BP to the form, dimensions, weight, packaging, etc. as well as the proper addressing format of postal items including by completed model forms; b) the prices of services; c) the articles that are prohibited for insertion in postal items; d) other requirements related to the use postal service; e) the amounts of indemnities under s. 52, 53, 54, 55 and 56.

20.2.

File complaints in cases under s. 17 and receive respective indemnity.

21.

The sender shall have the right, up to the moment of payment of the money order, against a preset price, to request by a written application to the destination PO or PA:

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a) return of the posted postal items or money order; b) amendments to be made in the addressee ’s name, address or destination of the postal item or money order, or change of the addressee; c) extension of the term for keeping money orders or postal items at PO or PA up to 15 days over the established time limit, excluding items with perishable content.

21.1. The addressee shall have the right, upon submission of a written application submitted to the destination PO or PA and against a preset price, to request: a) forwarding of a postal item or money order addressed to them to a new address in the same or another place of destination; b) extension of the term for keeping money orders or postal items at PO or PA up to 15 days over the established time limit, excluding items with perishable content.

22.

Senders of postal items shall:

22.1. Comply with the requirements to the form, weight, dimensions and addressing under s. 26.

22.2. Submit their postal items packed and sealed according to the requirements under s. 26.4.

22.3. Not insert in their postal items prohibited articles or substances according to s. 34.

22.4. Prepay the price for the services they use.

22.5. Not use forged, used or obsolete postage stamps, tampered or obsolete impressions of postal seals, postmarks, automated billing machines, press stamps or other printing or marking equipment, as well as counterfeit international reply coupons.

23.

The addressee shall install and maintain delivery letter boxes for non-registered postal items at places accessible and safe for postal employees

– at building entrances and yards. The letter boxes shall bear the names of their users.

CHAPTER VII

LIABILITY OF CUSTOMERS

24. The sender shall be liable for any damage caused by an item sent by them to BP property or employee, as well as to any third person, owing to falsely declared content or inappropriate packaging.

25. The sender shall be liable to BP for any damages caused by their postal items to other items. The liability shall be up to the limits of BP’s liability to the persons whose postal items have been damaged.

CHAPTER VIII

CONDITIONS FOR ADMISSION OF POSTAL ITEMS AND POSTAL MONEY ORDERS

26.

BP defines obligatory requirements to the form, minimum and maximum dimensions, weight and packaging, and the proper addressing of postal items.

26.1.

Weight and size of postal items shall be as follows: a) standard letter items:

- minimum size

– 90 mm x 140 mm;

- maximum size

– 120 mm x 235 mm;

- maximum thickness – 5 mm;

- maximum weight – 20 g; b) postcards:

- minimum size

– 90 mm x 140 mm;

- maximum size

– 120 mm x 235 mm; c) non-standard letter items with dimensions exceed those under letter "a":

maximum dimensions: the sum of the length, width and thickness shall not exceed 900 mm, with the largest dimension not exceeding 600 mm. - up to 2 kg in weight; d) small packets

– up to 2 kg in weight; e) direct mail

– up to 2 kg in weight;

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f) printed papers – up to 5 kg in weight; g) cecogrammes - up to 7 kg in weight; h) ordinary domestic postal parcels

– up to 20 kg in weight, with each of the three dimensions ( length, width and height)

– between 100 and 600 mm; i) cumbersome domestic postal parcels

– up to 20 kg in weight, with one of the three dimensions

(length, width and height) up to 1 m or containing fragile content;

26.2. The weight of international incoming and outbound postal parcels may be up to 31.5 kg and any one dimension – up to 1.5 m, or 3 m for the sum of the length and the greatest circumference measured in a direction other than that of length.

26.3. Courier items shall be up to 20 kg in weight or up to 25 kg, for items of impartible content, and size as follows:

- minimum size – 90 mm x 140 mm;

- maximum size of any one dimension up to 1.50 m, or m 3 m for the sum of the length and the greatest circumference measured in a direction other than that of length.

26.4.

The packing and the closing or postal items shall be adequate to their size, weight and content so as to protect them from damage.

26.5.

Addressing: a) in the bottom right-hand corner of the item the recipient

’s address details shall be written:

- name, surname, family;

- address - street, block, entrance, floor, apartment number;

- region;

postal code and name of the place, and the country name for international postal items. b) in the top left-hand corner or on the back of the items (excluding parcels) the senders address details shall be written:

- name, surname, family;

- address - street, block, entrance, floor, apartment number;

- region;

postal code and name of the place, and the country name for international postal items. c) domestic postal items and money orders shall be addressed in Cyrillic and international postal items

- using Latin letters and Arabic figures.

26.6.

BP may set out specific requirements to the addressing layout and format of postal items in order to enable machine and automated sorting of which customers will be notified accordingly.

27.

Except in the manner defined under s. 26.5, customers may address their postal items and postal money orders also: a)

“to be called for” (“poste restante”) at the destination PO, by specifying the name of the recipient; b) to a post office box, by specifying the name of the recipient and the number of the post office box at the destination PO.

CHAPTER IX

REQUIREMENTS TO SERVICE QUALITY AND EFFICIENCY

28.

BP shall provide the service under s. 3.1 in compliance with the quality standards for the universal postal service and service efficiency set out by a decision of the CRC.

28.1. The quality standards according to the decision under s. 28 include: a) end to end transit time for postal items and postal money orders; b) regularity of collection and delivery of postal items and postal money orders; c) handling time for complaints.

29.

The delivery time limits for courier service items shall be as follows: a) for domestic items – within the next working day;

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b) for European countries – the day of the air flight carrying the postal items, plus 2 working days; c) for non-Europe – the day of the air flight carrying the postal items, plus 5 working days;

CHAPTER X

METHOD OF PAYMENT FOR SERVICES

30. BP shall form the prices of the services within the scope of the universal postal service in accordance with the provisions of “Ordinance on specification of the rules for the formation and application of the prices of the services within the scope o f the universal postal service” and “Methodology for determination of the affordability or the universal postal service price” and shall submit them in due time to the Licensing Authority for coordination.

30.1. The prices of the universal postal services shall be determined by BP taking into account their demand and supply on the market and shall be notified to CRC within 10 days prior to their becoming effective.

30.2. BP shall inform customers of any change in postal service prices and of the prices of new services at least seven days before their becoming effective by posting announcements in the POs. The information of the prices of universal postal services shall be published prior to becoming effective in a central daily newspaper and on the Internet site of BP.

31.1. Customers shall prepay the price of a postal service. Payment shall be effected in cash, cashless or by means of postage stamps. The possible methods of payment for postal services are determined by

Bulgarian Posts Plc. and indicated by different marking in the booklets with the prices of provided services.

31.2. Postal services may be also paid for within the set time limits under a contract with the postal operator.

31.3.

By means of postage stamps the following services may be paid for: a) per weight prices of domestic letter items, postcards, printed papers, small packets, direct mail and cecogrammes; b) per weight prices of international “priority” and “non-priority” items; c) the supplementary service

“registered mail” to domestic and international universal postal service; d) additional postal services such as:

“express mail”, “advice on delivery”, “poste restante", etc.

31.4.

for international “priority” and “non-priority” items the price may be also paid by using international reply coupons;

31.5. The price paid in cash or cashless shall be indicated on the items by using imprints of automatic devices, franking machines, postal marking stamps, other equipment and technologies, and the text “postage paid”.

31.6. xhe following postal services within the scope of the universal postal service provided by BP

PLC, including acceptance, transport and delivery of: a) international and domestic service postal items of the postal administration of the Republic of Bulgaria; b) cecogrammes up to 7 kg in weight – Braille letters and clichés, sound recordings or special paper for the blind (excluding additional air mail prices), sent by and/or to blind citizens or officially recognized institutions for the blind and bearing the approved identification signs. c) postal items for prisoners of war and civilian internees as provided for in the Geneva Convention of

12.08.1949. d) The postal administration of the Republic of Bulgaria includes the Chairmen of the State Agency of

Information Technologies and Communications, the Communications Regulation Commission, their administrations and the Bulgarian Posts company as the principal postal operator.

32.

Pursuant to “Ordinance on specification of the rules for the formation and application of the prices of the services within the scope of the universal postal service”, BP may negotiate with customers that systematically send a great number of their own postal items: a) the method and term of payment;

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b) prices different from those determined under the Ordinance, subject to the principles of publicity and equality and in the presence of at least one of the following conditions, fulfilled by the customer prior to the admission of postal items:

1. placing of CRC approved impressions as a mark of paid price of the service using their own automated devices, franking machines, impression stamps and other printing or cancelling equipment according to art. 77, para 3 of the PSA;

2. handling of postal items – sorting, listing, etc.;

3. submission of items of equal size, form and/or weight

4. other specific conditions preset by BP;

5.

the specific conditions and prices approved by BP shall be agreed with the CRC and set out details in the contract with the customer.

33.

When the total nominal value of the postage stamps on a non-registered letter item posted in a collection box of BP is less than the price of the service, the difference will be collected from the addressee prior to delivery or, if not paid, the item will not be delivered and will be returned to the sender after the latter pays that difference.

33.1. A non-registered letter item posted in a collection box of BP without any postage stamps stuck on it will be returned to the sender if the sender's name and address is specified on the item. When no sender's name and address is specified on the item, it will be delivered to the addressee after the latter pays the price. If the addressee refuses to pay the amount, the item will be destroyed, according to s. 46.1, letter "a".

CHAPTER XI.

PROHIBITED ARTICLES AND SUBSTANCES

34.

Customers may not insert in domestic and international postal items (including courier service items) any of the following articles and substances. a) narcotic drugs, opiates, psychotropic, strong-action and toxic substances; b) weapons, explosive, flammable or other dangerous substances or articles; c) obscene or immoral articles; d) articles and substances that due to their nature or packaging pose risk to the life or health of postal employees or other persons, or may contaminate or damage other items or postal equipment; e) religions materials of sects and organizations that are banned or non-registered in this country; f) movable cultural valuables without a relevant permit or certificate.

34.1. It shall be prohibited to insert in postal items, excluding insured ones, coins, notes, currency notes, travel cheques, sender’s valuables, platinum, gold, silver, precious stones whether manufactured or not, and other valuable articles.

34.2. In international postal items, including insured ones, in addition to the substances and articles under s. 34.1 it shall be also prohibited to insert other substances or articles specified in international agreements as well as articles the import or distribution of which is prohibited in the country of destination. The information on prohibited articles and substances is available in any PO.

34.3. Postal items containing animals or perishable biological substances, including diagnostic samples shall not be admitted unless their packing meets the requirements set out in Bulgarian regulations, the Letter Post

Regulation or Parcel Regulation of the Universal Postal Union.

35. When there is doubt of the presence of prohibited articles or substances in a postal item, the postal service shall request the sender’s consent for examination. In case of refusal the items shall not be collected.

36. When there are reasonable grounds to consider that a collected postal item contains prohibited articles or substances, BP, after coordination with the person in charge of operative-technical examination, shall re quest the sender’s consent to open the item. In case of refusal or lack of response, the person in charge of operative-technical examination shall notify the relevant competent authorities and ask directives for subsequent actions.

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CHAPTER XII

CONDITIONS FOR DELIVERY OF POSTAL ITEMS AND PAYMENT OF

POSTAL MONEY ORDERS

37.

BP shall deliver a postal item to the person specified as an addressee.

37.1. Depending on the type of the postal item delivery shall be made as follows: a) non-registered postal items

– in the letter box of the addressee installed at the address of receipt. If the size of a non-registered postal item does not allow delivery into the mail receptacle, a service advice of the item shall be leaved in the receptacle inviting the addressee to appear at the delivery post office and collect the item. The delivery term shall be within 20 days after the date of receipt of the item by the delivery post office.

Should the addressee fail to appear within five calendar days from the date of receipt of the non-registered item by the delivery post office, a second service advice shall be sent. b) registered postal items

– at the recipient’s address or in the delivery post office, confirmed by a signature in the form attached to the postal item or in the delivery book. Postal items that are delivered at the recipient’s address shall be handed to the addressee in person or to their designee, or – in case that there is no instruction for

”delivery in person” - to any family member of legal age, with specifying the recipient's name and relationship with the addressee in the delivery book. Postal items sent to government bodies, organizations and other legal persons shall be delivered at their address to their bookkeeping office or to an authorized officer. If the postman visiting the address can not deliver the postal item because of absence of the addressee/family member, a service advice of the item shall be leaved in the receptacle (of the addressee) inviting the addressee to appear at the delivery post office and collect the item. The delivery term shall be within 20 days after the date of receipt of the item by the delivery post office. Should the addressee fail to appear within five calendar days from the date of receipt of the letter item by the delivery post office, a second official advice shall be sent. c) postal items “to be called for” shall be delivered to the addressee at the delivery post office upon presentation of an identity document; d) non-registered letter items to addressees residing outside the boundaries of the destination place shall be delivered at the PO or in cluster box delivery cabinets. Cluster box delivery cabinets shall be installed by

BP at suitable locations - accessible to both BP and customers. e) delivery of insured postal items and insured or non-insures postal parcels shall be made at the destination post office of which BP shall notify the addressee by a service advise. The delivery term shall be within 20 days after the date of receipt of the item by the delivery post office. Should the addressee fail to appear within five days from the date of receipt of the non-registered item by the delivery post office, a second service advice shall be sent. f) upon delivery of a postal item with confirmation of delivery, the addressee shall sign the receipt note, fill in the date of receipt and return it to the postal employee. BP shall return the receipt note to the sender or forward it to a recipient specified by the sender, as a registered letter mail.

38. Postal parcels may be also delivered at the recipient’s address, subject to a supplementary agreement with the sender or the recipient and an extra charge paid for the service.

39. Refusal of the addressee to accept a postal item or parcel according to s. 37.1, letters

“b” and “e” shall be noted in the form accompanying the postal item and undersigned. In case that the addressee refuses to do so, the fact shall be certified by the postal employee, who shall enter and sign a note of the refusal.

40. Insured and cash on delivery (COD) postal items shall be delivered upon payment of the COD fee by the addressee. The money collected shall be remitted by BP to the sender of the item.

41. When insured or COD postal items, registered postal items or postal parcels are conveyed or delivered with damaged packaging, signs of encroachment or difference between the item weight and the weight indicated on the item upon admission, the post office shall issue a standard form report.

41.1. The document under s. 41 shall include details of the date and time of delivery, delivery post office, item type and weight indicated, the insured value, place and time of posting, full addresses of the sender and recipient, detailed description of the appearance of the packing and the content of the item and the possible cause for the damage.

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41.2. The document under s. 41 shall be signed by the issuer and the recipient of the item. If the recipient refuses to sign the report, BP shall ensure one witness, who may well be a postal employee to sign the document.

41.3. A copy of the document under s. 41 shall be given to the addressee with the postal item, and the addressee may file a complaint in case they consider that BP is to blame for the established item’s deficiencies.

42.

Postal money orders shall be paid to their addressees at post offices upon presentation of an identity document, within 20 days form the date of issue of the money order, of which BP shall notify the addressee by a service advice or on the phone.

42.1. Postal money orders may be also paid out at the recipient’s address, subject to a supplementary agreement with the sender or the recipient and an extra charge paid for the service.

42.2. Money orders may be also paid out to the recipients into a specified bank account, against a charge paid for the service.

43. When the recipient of a postal item or postal money order has changed their address, the postal item or money order shall be forwarded by default to their new address, if it is known to the postal service. In such case, the recipient shall pay for the forwarding service.

44. Addressees of registered postal items, postal parcels and postal money orders may authorize other persons to receive the items, who can receive them upon presentation of the certified authorization and an identity document.

44.1.

Authorizations issued by managers of government bodies, organizations and legal persons shall be signed by the respective manager and impressed with seal.

44.2.

Authorizations for receiving postal items addressed to military units and servicemen shall be signed by the commander of the respective military unit and impressed with seal.

44.3. The signatures on authorizations issued by physical persons shall be certified by a notary public or a regional judge, or

– if there are no such public officers in the destination place – by the mayor of the municipality or the place, according to art. 83 of the Notaries and Notarial Activity Act.

44.4. Ad-hoc authorizations issued for an individual postal item, parcel or postal money order shall be applied to the receipt note.

44.5. Authorizations for a set period shall be issued in duplicate and shall be valid for up to 12 months.

One counterpart shall be submitted to the respective post office where it shall be kept for 3 years after the expiration of authorization validity. The other counterpart shall be presented by the authorized person every time when a postal item, parcel or money order is received. For the processing and keeping of their authorizations, the authorized persons shall pay a fee, determined under the procedure of s. 30.1.

44.6. General authorizations shall be presented by the authorized persons when receiving registered postal items, postal parcels and postal money orders and, after entering in the receipt note their reference numbers, dates and authorities that have certified the authorizations, the latter shall be returned to the authorized persons.

44.7. Registered postal items that are non-insured or insured up to 30% of the maximum coverage set out by BP, parcels that are non-insured or insured up to 30% of the maximum coverage set out by BP, and postal money orders up to the maximum limit set out by BP, addressed to physical persons may be delivered (or paid out

– for postal money orders) to authorized persons based on a single-time authorizations related to individual items, parcels and money orders without the certification required under s. 44.3, upon presentation of an identity document by the authorized person. The personal details of the authorized persons shall be filled in the receipt note for the postal item, parcel or money order, with the authorization form attached thereto. Such authorizations may be used to receive up to three postal items and up to three money orders within a calendar year. The authorizer shall declare that they have not used the right more than three times during the calendar year.

44.8 Registered postal items, postal parcels and postal money orders addressed to underaged persons or persons between 14 and 18 years of age. a) A registered postal item, postal parcel and postal money order addressed to a person between 14 and 18 years of age shall be delivered, and the money order paid out, personally, upon presentation of an identity document in the presence of a parent or guardian.

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b) A registered postal item, postal parcel and postal money order addressed to a person under 14 years of age shall be delivered, and the money order paid out, to a parent or guardian, upon presentation of a birth certificate, court decision or identity document.

CHAPTER XIII

RETURN OF NON-DELIVERED POSTAL ITEMS AND NON-PAID POSTAL MONEY

ORDERS

45. Postal items that can not be delivered because: they are not called for within the set time period; addressees refuse to accept them or to pay the COD charges; the addressee's new address is unknown; unknown or deceased addressee at the specified address; the address is incomplete or non-existing; shall be returned forthwith to their senders.

45.1. The amounts sent by money orders that can not be paid out to the addressee by any of the reasons specified in s. 45, shall be returned forthwith to their senders.

45.2. Registered letter items, printed papers, cecogrammes, small packets and parcels, that are not received within 20 days from the date of arrival at the destination post office shall be returned immediately after the expiry of such period. Parcels containing perishable content or showing signs of perish shall be returned immediately to the sender accompanied by service forms.

45.3. “Poste restante” postal items that are not called for within 20 days from the date of arrival at the destination post office shall be returned, and money orders

– within 20 days from the date of issue, shall be returned to their senders after the expiry of such period.

45.4. Domestic postal and cable money orders that are not paid out within 20 days from their date of issue shall be returned to the senders immediately after the expiry of such period.

45.5. the Amounts under international money orders that are not paid out within 20 days from the date of registration with the Control Inspectorate on Posts, after the expiry of such period, shall be sent immediately to the Control Inspectorate on Posts in order to be returned to their senders.

46.

Non-delivered postal items that can not be returned to their senders because they refuse to accept them back or have leaved for unknown address, or are deceased or do no appear to receive them with the 20-day period from the written notification thereof, shall be destroyed.

Non-paid postal or cable money orders that can not be returned to their senders because of any of the reasons in s. 46 or because the senders did not appear within a 10-day period from the written notification of return, shall be sent to the Control Inspectorate on Posts in order to be kept there for the period prescribed in s.

46.3.

46.1.

Disposal of postal items under s.46 shall be certified by a report and shall be carried out by a commission of three employees of BP as follows: a) letter items and printed papers shall be cut in pieces manually or by using special paper shredding machine; b) merchandisable articles from small packets and parcels shall be sold at auctions and the proceeds, after deducting selling costs, shall remain for BP; c) articles that remain unsold after the auction under letter "b" shall be disposed of by an appropriate method.

46.2. The procedure of s. 46.1 shall also apply to disposal of non-delivered postal items that can not be returned to their senders because the latter have specified an incomplete or inaccurate address or no address at all.

46.3. Amounts under postal and cable money orders that are neither paid out to the recipients nor returned to the senders due to the reasons and within the period specified in s. 46 shall be kept at the Control

Inspectorate on Posts at the disposal of their senders or recipients for three years from the end of the year of issue, and booked in the accounts of BP afterwards.

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CHAPTER XIV

PERFORMANCE OF THE CONTRACT

47.

The contract shall be considered to be fulfilled: a) after postal items (including items involving services under s.3.2) are delivered and money order amounts are paid or transferred into the specified bank accounts; b) after non-delivered postal items or non-paid money order amounts are returned to their senders, c) under the procedure of s.46.1 and reporting the unpaid money order amounts are booked as per

46.3.

CHAPTER XV

PROCEDURES FOR COMPLAINTS AND INDEMNIFICATION AND DISPUTE SOLVING

PROCEDURES

48.

A complaint in the instances under s. 17 and 41 may be filed by the sender of the item, up to the moment of its delivery to the addressee.

48.1. Prior to the receipt of the item, the addressee may only file a complaint with the written consent of the sender.

49.

The complaint shall be lodged at the post office of acceptance or destination, or in any other post office.

49.1. The complaint shall be accompanied by a copy of the posting receipt and the findings report for delivery irregularities, if any issued. If the complainant is unable to submit the above documents, they shall specify all details related to the item

– post offices of admission and destination, names of the sender and the addressee, type, number, date of the item, item content, etc.

50. The time limit for filing complaints shall be six months from the date of submission of postal items or money orders.

51. Within 1 month from filing a complaint related to domestic postal items and money orders or 3 moths - for international postal items and money orders - BP shall notify the complainant of the outcome. If the complaint is respected, the indemnity shall be paid within one month from the date of notification.

51.1.

If the complaint is rejected or remained unanswered within the time period under s. 51 the complainant may submit a written request to the Communications Regulation Commission for opinion on the dispute.

The Communications Regulation Commission will take a decision on the request within 30 days from its submission and will notify the parties in writing of its decision on the dispute within three days from the date of decision.

51.2.

If the complaint is rejected, wholly or partly, or remains unanswered within the period under s. 51, the complainant may file a claim in court without having to comply with the provisions of s. 51.1 beforehand. The dispute may be brought to a court for resolution also after applying the provisions of s.51.1.

52.

For domestic postal items and money orders, BP shall owe to the senders or addressees: a) for damaged content, lost or delivered to unauthorized person registered postal item - indemnity equal to 3 levs.; b) for a lost non-insured parcel as well as for partly missing content of the parcel – indemnity for the actual cost of the damage, but not more than the sum of 2 lev per parcel and 1.50 lev per kilogram of item’s weight. c) for a registered parcel item as well as for damaged or partly missing content, not caused by hidden defects of the packing or the nature of the content the indemnity paid shall be equal to the actual cost of the damage up to the amount of the insured value. d) for postal money order or cheque amounts non-paid within the prescribed period or paid to unauthorized persons through a fault of BP, the liability of the latter shall be in the amount of the sum stated in the money order or the cheque.

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e) for proceeds from COD parcels that are not collected or not transferred to the sender, the liability of

BP shall be in the amount to the cash on delivery; f) in addition to the indemnities under letters “a” to “e" above, the price of the service paid upon submission of the item shall also be paid back.

53.

For lost, completely robbed or completely damaged international registered priority or non-priority items, BP shall owe an indemnity in Bulgarian levs equal to 30 SDR (Special Drawing Rights), plus the sum of the service prices paid upon admission of the item, excluding the registration price.

For lost, completely robbed or completely damaged international registered priority or non-priority Mbags, BP shall owe an indemnity in Bulgarian levs equal to 150 SDR (Special Drawing Rights), plus the sum of the service prices paid upon admission of the M-bag, excluding the registration price.

53.1. The indemnity for a partly robbed or partly damaged international registered priority or non-priority item shall be in the amount of the actual cost of the damage, but not more than the amount under s. 53.

The indemnity for a partly robbed or partly damaged international registered priority or non-priority Mbag shall be in the amount of the actual cost of the damage, but not more than 150 SDR.

54.

In case of a partly robbed or partly damaged international insured value letter item, BP shall owe to the sender an indemnity in the amount of the actual cost of the damage, but not more than the amount in

Bulgarian levs equal to the insured SDR value.

54.1. If the item referred to in s. 54 is lost, completely robbed or completely damaged, BP shall also pay back to the sender the prices paid for the service, excluding the price of the "insured value" service.

55.

For a lost, completely robbed or completely damaged international parcel, BP shall owe an indemnity calculated based on the sum of the amount, in Bulgarian levs, equal to 40 SDR per parcel plus 4.50

SDR per kilogram, including the service price paid upon admission of the item. a) For a partially robbed or partially damaged international parcel, BP shall owe an indemnity corresponding to the actual damage cost, but not more than the amount calculated based on the sum of the amount, in Bulgarian levs, equal to 40 SDR per parcel plus 4.50 SDR per kilogram. b) For a lost completely robbed or completely damaged international insured value parcel BP shall owe an indemnity equal to the sum of the insured value in Bulgarian levs calculated at the exchange rate of SDR and the service prices paid upon admission of the item, excluding the price of the additio nal “insured value” service. c) For a partially robbed or partially damaged international insured value parcel, BP shall owe an indemnity equal to the actual cost of the damage, but not more than the insured value, in Bulgarian levs, calculated at the exchange rate of SDR.

55.1.

The amount of the indemnity in Bulgarian levs shall be calculated according to Art. R1_109 of the

Letter Post Regulation of the Universal Postal Union.

56. For postal items send through the domestic courier service, “BULPOST” (or the international courier service, “EMS”) the liability of BP shall be as follows:

56.

1. For failure to keep the terms of delivery under s. 29 BP shall owe to the sender: a) for domestic items

– the difference between the price paid and the price for an ordinary parcel item of the same weight addressed to the same destination. b) for international items – the difference between the price paid and the price for non-insured value air mail parcel of the same weight addressed to the same destination.

56.2. For a lost, robbed, damaged or delivered to an unauthorized person non-insured item sent through the domestic courier service (“BULPOST”), the indemnity owed shall be 6 levs for an item containing documents and 36 levs for an item containing other articles.

56.3. For a lost, partially or completely robbed or damaged, or delivered to an unauthorized person insured value item, an indemnity shall be paid in the amount of the actual cost of the damage but not more than the insured value.

56.4. In addition to the indemnities under s. 56.2 and 56.3, the price for the service shall be also paid back.

56.5. For a lost, partially or completely robbed or damaged item sent through the International courier service (EMS) the actual cost of the damage shall be paid but not more than 30 SDR for an item containing document and 130 SDR for an item containing goods. In addition to the indemnity, the price for the service shall be also paid back.

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57. BP shall not be liable for incurred indirect damage or lost profit caused in result of any lost, damaged, delivered to unauthorized persons or delayed domestic or international items.

58. BP shall be only liable for postal items under insurance contracts signed between the sender and an insurer, if the latter assumes the rights of the insured according to art. 213 of the Insurance Code up to the indemnity to which the sender or the addressee are entitled under the present Chapter of the General Terms and

Conditions. The indemnity shall be paid to the insurer if not paid to the sender or the addressee.

CHAPTER XVI

DEFINITIONS

59.

Within the meaning of the General Terms and Conditions:

59.1. POSTAL ITEMS are items containing articles whose physical properties and technical parameters allow their conveyance through the postal network. Postal items include letter items, postcards, printed papers, direct mail, small packets, cecogrammes, as well as postal parcels containing articles with or without commercial value as well the items under s. 3.2.

59.2. LETTER ITEM (a LETTER and/or POSTCARD) is written communication on any physical support that must be forwarded and delivered at the address indicated by the sender on the item. Printed papers are not letter items.

59.3. PRINTED PAPERS is a postal item containing newspapers, periodicals, books, catalogues, paper reproductions used in polygraphy, with the sender’s and recipient’s addresses on the item.

59.4. POSTAL PARCEL is a postal item of standard size and weight, usually containing commercial or non-commercial articles.

59.5. POSTAL MONEY ORDERS (MONEY ORDERS AND CHEQUES) are postal services for transmitting amounts through the post offices of the universal postal service operator by the sender to the recipient, or transfer of money from one current account into another.

59.6. REGISTERED POST is a postal service representing contracted insurance against risks of loss, theft and damage, with an acceptance note issued to the sender and optional confirmation of delivery note, on sender’s request.

59.7. INSURED VALUE POST is a postal service involving operator's liability up to the amount declared by the sender as a value of the item content in case of loss, theft or damage of the item content in case of loss, theft or damage.

59.8. CASH ON DELIVERY is a postal service whereby a postal item is delivered to the addressee against payment of certain price specified by the sender.

59.9. INTERNATIONAL POSTAL ITEMS are items originating from or destined to another country.

59.10. SPECIAL DRAWING RIGHT (SDR) is a settlement unit of account of the International Monetary

Fund used also in acts of the Universal Postal Union.

59.11. CUSTOMER is any physical or legal person using postal services as a sender or recipient.

59.12. SENDER is a physical or legal person sending a postal item and/or postal money order.

59.13. ADDRESSEE is the physical or legal person specified in the address of the postal item and/or postal money order, for which they are destined.

59.14.

HOUSEHOLD includes persons who live together at common expense.

59.15. POST OFFICE (PO) is a postal service accessible to customers for using the services under s.

3.1.

59.16. POSTAL AGENCY ( PA) is a postal service accessible to customers for using the services under s. 3.1. as well as for receiving money through money orders.

59.17. SMALL PACKET is a postal item containing commercial or non-commercial articles and weighing up to 20 kg

59.18. CECOGRAMMES are Braille letters and cliches, sound recordings or special paper sent by and/or to blind citizens or officially recognized institutions for the blind and bearing the approved identification signs.

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59.19. INTERNATIONAL REPLY-COUPON is a special form approved by the Universal Postal Union and having a standard exchangeable value. By using an international reply coupon the senders prepays to the recipient the return postage for a standard letter item-reply.

59.20. EXPRESS POST is used for letter items, printed papers and small packages only to places having post offices, with delivery made by the fastest possible way.

59.21. DIRECT MAIL is a postal item containing a message aimed solely at advertising or marketing.

All items have identical content, excluding the name, address and identity number of the addressee as well as other varying data changing the nature of the message. The message is distributed to a significant number of persons and delivered at the address specified by the sender on the item itself or its wrapping. Bills, invoices, financial statements and other non-identical messages are not considered as direct mail. Postal items that include direct mail in the same wrapping with other items are not considered as direct mail.

59.22. PRIORITY ITEMS are postal items transmitted and delivered by the fastest possible way.

59.23. NON PRIORITY ITEMS are postal items for which the sender has chosen a lower rate implying a longer conveyance and delivery time.

59.24. ACCEPTANCE of postal items is the activity of receiving by postal operators of postal items submitted by their senders at the access points.

59.25. TRANSFER OF POSTAL ITEMS is the activity of postal operators covering the process from acceptance up to delivery of postal items.

59.26. DELIVERY OF POSTAL ITEMS is the activity starting with sorting of postal items at the delivery centre and ending with their handing over to addressee.

59.27. ACCESS POINT is an operator’s post office where senders submit and the operator accepts postal items and postal money orders, as well as a collection box of the principal postal operator installed at a public place.

59.28. STANDARD DOMESTIC LETTER ITEM is a postal items with the following size: maximum -

120/235 mm, minimum - 90/140 mm, maximum thickness - 5 mm

59.29. POSTAL NETWORK is the aggregate of organizationally and technologically linked units and means, including post offices, exchange and sorting centers, vehicles and technical means set up and used for the purpose of acceptance, conveyance and delivery of postal items and postal money orders.

59.30. COURIER SERVICE is a value added postal service in addition to the universal postal service.

The courier service not only guarantees faster and more reliable acceptance, conveyance and delivery of items to the addressee in person, but also includes provision of all or some of the following services: a) collection at sender’s address; b) delivery by a set date; c) possibility to change destination and recipient during the transfer; d) advising the sender of the delivery of the item; e) track & trace of the items; f) customized and “a la carte” service provided to customers in the requested manner and at the requested time (“upon request” and “under contract”);

59.31.

FORCE MAJEURE is a unforeseen and unpreventable event of extraordinary nature occurred after the entry into contract.

59.32. POSTAL SECURITY is the aggregate of measures and actions aimed to secure and safeguard postal items, money, operator’s property, life and health of postal employees and customers, confidentiality of correspondence, and to help in investigation of offences against or through the postal network. These measures are applied by using relevant technical means and qualified personnel.

59.33. SYSTEMATIC OFFENCE is when three or more administrative offences of this Act or its application regulations are committed within a two-year period.

AMENDMENTS TO THE GENERAL TERMS AND CONDITIONS

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60.

BP, on its own initiative or upon proposal by customers and their legitimate organizations, as well as on proposal by the CRC, may make reasonable amendments to these General Terms and Conditions. Such amendments shall be made following the procedure of their adoption.

60.1. Amendments to separate provisions of the contract under s.2 shall be made by mutual agreement between the parties.

ENTRY INTO FORCE

61.

These General Terms and Conditions are issued on the grounds of art. 21 of the Postal Service Act and shall enter into force as of 01.12.2007. Before becoming effective they are agreed following the procedure provided for in art. 21 and published by BP in one central daily newspaper, on the web site of Bulgarian Posts and posted at accessible locations in PO and PA.

62. The interaction of customers with BP related to accepted but non-delivered postal items and non-paid money orders by the date of entry into force of these General Terms and Conditions shall be subject to the applicable procedure in force by that date.

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