FEPA News

FEPA NEWS 45 52 Developments in Philately all Danish stamps issued from 1933 to 2023 to be declared invalid for domestic mail. Demonetisation at such short notice created a furore in both business and domestic circles, which included the Danish Philatelic Federation, the consumer ombudsman (Forburgerombudsmanden), and lawyers. Subsequently Andreas Brethvad, Press Officer at PostNord told Danmarks Radio that it will be possible to exchange stamps purchased in 2022 and 2023 with a total value greater than DKK 120 for a fee of DKK 50 until 30 June 2024. At the time of writing this concession extends only to stamps with a face value of DKK 12 and DKK 36. However, PostNord still has a universal service obligation for international mail, which is not subject toVAT, meaning that all Danish stamps issued from 1933 remain valid for foreign mail. VAT (Value Added Tax), known as MOMS in Denmark and GST (Goods and Services Tax) elsewhere, is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. The standard rate in Denmark is 25%. These changes have had other consequences which include: . PostNord plans to reduce the already thin network of 6000 letterboxes by a further 1000 in the coming year. . Bjarne Heck of Fyns Frimærke Service - a well-known Danish dealer and auction house - had DKK 200,000 (£23,000 or US$30,000) in unused postage stamps for his own postal needs. Almost all of these were made worthless overnight. This story has been on television and in the newspapers resulting in Post Danmark - the wholly owned subsidiary of PostNord - calling in Danmarks Frimærkehandlerforening, an organisation which represents the thirty-two Danish philatelic businesses, for urgent discussions. The first meeting was held on 11 January 2024, but no progress is believed to have been made, and many dealers are still out of pocket. . DAO, also known as Bladkompagniet A/S, a company founded in 1920, whose business includes the distribution of close to 400,000 newspapers and magazines every night, has offered to deliver letters for 20 Kroner - inland only with printed labels for prepaid postage. Details are sketchy, but their website states that they, “deliver letter post every night - 7 days a week - throughout Denmark.” However, the present consensus is that DAO offers insufficient security for domestic mail for philatelic businesses. . Sending Birthday and Christmas cards has become increasingly uncommon, especially to overseas destinations, and the current changes are expected further to reduce domestic and overseas letter mail. . There’s always been a floor under the price of modern commemorative and definitive stamps, represented by their face value, and the discount at which commercial organisations have been prepared to buy them for postage. Now that most mint Danish stamps have no commercial value, the only likely buyers are collectors, and where does that leave the catalogue price? . The Danish Government intends to put the delivery of three elements of the postal services out to tender, but no timetable has yet been fixed. These include postal services to island communities, free deliveries for the blind, and international mail. Otherwise, domestic mail is to be served by the open market with no universal service obligation. . PostNord has agreed a temporary arrangement to continue its letter services, including the three elements subject to tender, but has made it clear that the company “continues to strengthen its focus on the parcels market.” Nikolaj Ahrenkiel, acting CEO of Post Danmark, commented, “During the political process, we have drawn attention to the consequences of abolishing the universal postal service - both for Danes and for our presence in the letter market.” He added, that “PostNord’s mail business as we know it today will not be part of the business in the long term.” Furthermore, “The digitalisation of society means that it is no longer an economically viable business to deliver letters throughout the country.” . Mailbox services, mail-holding and delivery of newspapers and magazines seem also likely to be terminated by the end of 2024. . The Danish postal regulator will increase its monitoring to ensure that the market provides a nationwide uniform service. If any shortcomings are identified the Ministry of Transport can designate a postal operator to provide these services.