In 1875, the Canadian Post Office began the "double deficiency" system of charging double the postage owing on letter mail received with insufficient postage. The double deficiency system remained in effect until 1985, when Canada Post Corporation introduced a new procedure in which the recipient could pay the amount owing plus an administrative charge. This post explains the double deficiency to 1985 and the administrative charge taxation procedures in effect from 1985 onward.
Reference
Mike Street, a prolific and well-respected author, was the first philatelic researcher to explain the administrative charge system in articles published in Maple Leaves (2002) and BNA Topics (2004). This posting would not have been possible without Mr. Street's research efforts.
A. "Double Deficiency" Period : To August 31, 1985
8 cent letter rate period : January 1, 1972 - August 31, 1975
Vancouver to Kincardine
8 cent letter rate unpaid and taxed 16 cents
Postage due stamps affixed and cancelled August 8, 1975
Port Stanley to Aylmer West, May 22, 1974
8 cents letter rate
U.S. stamp was invalid, thus an unpaid letter. Manuscript T/16 (16 cents)
Postage due stamp cancelled May 24, 1974
Winnipeg to London, October 2, 1974
14 cents 1-2 oz. letter rate
Shortpaid 6 cents and taxed 12 cents
Ottawa to London, February 26, 1977
10 cents letter rate
Unpaid and taxed 20 cents
12 cents rate period: March 1, 1977 - March 31, 1978
Toronto to Newmarket, March 25, 1977
12 cents letter rate unpaid and taxed 24 cents
14 cents Rate Period : April 1, 1978 - March 31, 1979
Ottawa to Toronto, August 9, 1978
14 cents letter rate unpaid and taxed 28 cents
Chemainus to Toronto, August 14, 1981
17 cents letter rate unpaid and taxed 34 cents
30 cents rate period : January 1, 1982 - February 14, 1983
Mississauga to Laprairie, January 16, 1983
30 cents letter rate unpaid and taxed 60 cents
Dues cancelled January 18, 1983
32 cents rate period : February 15, 1983 - June 23, 1985
La Salle to Montreal (Montreal LPP handstamp February 7, 1985)
32 cents letter rate unpaid and taxed 64 cents
Amqui to Ville St-Laurrent, July 26, 1985
34 cents letter rate
Shortpaid 2 cents and taxed 4 cents
B. Administrative Charge Period : From September 1, 1985
In his search at the National Archives, Mr. Street found Canada Post Corporation press release 8512 dated April 10, 1985, outlining the new procedures which were to take effect on September 1, 1985. According to the document, if the sender could be identified, shortpaid mail would be returned to the sender for remailing with proper postage. If the sender could not be identified, the mail would be forwarded to the addressee. The addressee could refuse delivery or pay the amount owing plus a 25 cent administrative charge.
Mr. Street's research in the Postal Guides from 1985 to 2004 allowed him to produce a table showing the changes in the administrative charge over that period. (See Topics article, page 50) The initial 25 cents charge was increased to equal the domestic letter rates from 1987 to the end of 1993. From 1994 to the end of 1998, the charge, whose name was changed to "Deficient Postage Fee" in 1998, was 1 or 2 cents more than the letter rates. Since January 1, 1999 (and at least to 2009), the fee has been equal to the letter rates.
1. Returned Insufficiently Paid Letters
Insufficiently paid letters were returned to the sender. Peelable labels were affixed explaining why the letter was returned and advising the sender to remove the label, add the missing postage and re-mail.
Unpaid letter, Ottawa 1985
Returned to sender for re-mailing
Unpaid letter from Brampton to Toronto
Label dated 6-86
2. Administrative Charge /Deficient Postage Fees
25 cents charge : September 1, 1985 - March 31, 1987
Umpaid
St-Eustache to Ville St-Laurent, November 7, 1985
34 cents letter rate
Unpaid and taxed 59 cents : 34 cents deficiency + 25 cents administrative charge
(The amount due would have been 64 cents had the double deficiency system been in effect)
To Niagara Falls and taxed at Toronto South LPP April 4, 1986
34 cents letter rate
Unpaid and taxed 59 cents : 34 cents deficiency + 25 cents administrative charge
Shortpaid
Ste-Therese-de-Blainville to Scarborough, August 8, 1986
34 cents letter rate
Taxed 27 cents : 2 cents deficiency + 25 cents administrative charge
(The amount due would have been 4 cents had the double deficiency system been in effect)
Forwarded as a Courtesy
Some shortpaid mail was forwarded to addressees rather than returned to the sender for remailing without being taxed or charged the administrative fee. A "FORWARDED AS A COURTESY" handstamp was applied to indicate that Canada Post Corporation was not following its normal procedure. The courtesy was usually shown a short while after a rate change.
St-Augustin to Ville St-Laurent, October 17, 1985
34 cents letter rate
Shortpaid 2 cents and taxed 2 cent (no administrative charge) as a courtesy
Double Deficiency Taxation
St Isidore Dorchester to Ville St-Laurent, June 27, 1986
34 cents letter rate
Shortpaid 2 cents and incorrectly taxed 4 cents, double deficiency
Unfortunately, my collection of shortpaid letters of the 1987 to 2001 period is embarrassingly barren. Things pick up a bit though from 2001 to 2007.
36 cents charge : April 1, 1987 - December 31, 1988
Thunder Bay to Niagara Falls, April 28, 1987
36 cents letter rate
Shortpaid 2 cents but "Forwarded As A Courtesy" - No taxation
The correct taxation would have been 38 cents : 2 cents shortpaid + 36 cents administrative charge
37 cents charge : January 1, 1988 - December 31, 1988
[Not Shown]
38 cents charge : January 1, 1989 - December 31, 1989
Winnipeg to Niagara Falls, January 1989
38 cents letter rate
Shortpaid 1 cent but "Forwarded As A Courtesy" - No taxation
The correct taxation would have been 39 cents : 1 cents shortpaid + 38 cents administrative chargeDouble Deficiency
Carseland to Niagara Falls, January 10, 1989
38 cents letter rate
Shortpaid 1 cents and incorrectly taxed 2 cents, Double deficiency
39 cents charge : January 1, 1990 - December 31, 1990
[Not Shown]
40 cents charge : January 1, 1991 - December 31, 1991
Incorrect Administrative Charge
Sackville, April 26, 1991
Unpaid 40 cents letter rate
Correct taxation 80 cents : 40 cents deficiency + 40 cents administrative charge
This letter was incorrectly taxed 65 cents suggesting that the postal clerk incorrectly applied a 25 cents administrative charge : 40 cents single deficiency + 25 cents administrative charge (incorrect)
42 cents charge : January 1, 1992 - December 31, 1992
[Not Shown]
43 cents charge : January 1, 1993 - December 31, 1993
Toronto to Oakville, October 19, 1993
Oversize letter rate 86 cents
Shortpaid 43 cents and taxed 86 cents : 43 cents deficiency + 43 cents administrative charge
[Not Shown]
45 cents charge : October 1, 1994 -July 31, 1995
[Not shown]
46 cents charge : August 1, 1995 - December 31, 2000
Cancelled at Victoria ((V8Z 4B0) to Burnaby, November 6, 1996
45 cents letter rate unpaid and taxed 91 cents : 45 cents deficiency + 46 cents administrative charge
45 cents letter rate unpaid and taxed 91 cents : 45 cents deficiency + 46 cents administrative charge
47 cents fee : January 1, 2001 - January 13, 2002
Winnipeg to Kanata ( No date)
47 cents letter rate unpaid and taxed 94 cents : 47 cents deficiency + 47 cents deficient postage fee
Edmonton to Kanata, December 18, 2002
48 cents letter rate unpaid
Taxed 96 cents : 48 cents deficiency + 48 cents deficient postage fee
48 cents letter rate unpaid
Taxed 96 cents : 48 cents deficiency + 48 cents deficient postage fee
2nd Weight Step Letter Rate : (greater than 30g, equal to or less than 50g)
Saskatoon to Calgary, February 22, 2002
77 cents 2nd weight step rate
Shortpaid 29 cents
Taxed 77 cents : 29 cents deficiency + 48 cents deficient postage fee
49 cents fee : January 12, 2004 - January 16, 2005
Edmonton to Montreal, November 22, 2004
49 cents letter rate unpaid
Taxed 98 cents : 49 cents deficiency + 49 cents deficient postage fee
50 cents fee : January 17, 2005 - January 15, 2006
Edmonton to Montreal, February 23, 2005
50 cents letter rate unpaid
Taxed $1.00 : 50 cents deficiency + 50 cents deficient postage fee
London to Ottawa, April 5, 2005
50 cents letter rate unpaid
Taxed $1.00 : 50 cents deficiency + 50 cents deficient postage fee
Hamilton to Ottawa, October 1, 2005
50 cents letter rate
Shortpaid 49 cents and taxed 99 cents : 49 cents deficiency + 50 cents deficient postage fee
51 cents fee: January 16, 2006 - January 15, 2007
Rates:
The four tax markings shown below were applied to "Standard Letter" size covers, i.e Maximum 245mm x 150mm x 5mm.
89 cent Standard Letter rate : greater than 30g, equal to or less than 50g
August 29, 2006
89 cents letter rate
89 cents letter rate
Shortpaid 48 cents and taxed 89 cents : 48 cents deficiency + 51 cents deficient postage fee
$1.05 Other Letter mail rate : greater than 50g, equal to or less than 100g
August 9, 2006
$1.05 cents other lettermail rate
$1.05 cents other lettermail rate
Shortpaid 54 cents and taxed $1.05 : 54 cents deficiency + 51 cents deficient postage fee
August 30, 2006
$1.05 cents letter rate
$1.05 cents letter rate
Shortpaid 3 cents and taxed $1.05 : 3 cents deficiency + 51 cents deficient postage fee
$1.78 rate : greater than 100g, equal to or less than 200g
August 27, 2006
$1.78 cents letter rate
$1.78 cents letter rate
Shortpaid $1.27 and taxed $1.78 : $1.27 deficiency + 51 cents deficient postage fee
52 cents fee : January 2007 - January 11, 2009
Hamilton to Kanata, November 2, 2007
52 cents letter rate unpaid
Taxed $1.04 : 52 cents deficiency + 52 cents deficient postage fee
(not in author's collection)
July 28, 2008
96 cent greater than 30g, equal to or less than 50g rate
Taxed 96 cents : 44 cents deficiency + 52 cents deficient postage fee (shown in T marking)
54 cents fee : January 12, 2009 - January 10, 2010
[Not shown]
57 cents fee : January 11, 2010 - January 16, 2011
Ottawa Manual Sortation Short Paid Mail handstamp
July 28, 2010
To Kanata,July, 2010
Taxed at Ottawa, July 28, 2010
57 cents letter rate unpaid
Taxed $1.14 : 57 cents deficiency + 57 cents deficient postage fee
59 cents fee: January 17, 2011 - January 15, 2012
Hamilton to Kanata, December 12, 2012
59 cents letter rate unpaid
Taxed $1.18 : 59 cents deficiency + 59 cents deficient postage fee
Toronto to Kanata, November 24, 2011
59 cents letter rate unpaid
Taxed $1.18 : 59 cents deficiency + 59 cents deficient postage fee
Ottawa (?) to Kanata, November 18, 2011
59 cents letter rate unpaid
Taxed $1.18 : 59 cents deficiency + 59 cents deficient postage fee
Vancouver to Kanata, July 44, 2011
59 cents letter rate unpaid
Taxed $1.18 : 59 cents deficiency + 59 cents deficient postage fee
61 cents fee : January 16, 2012 - January 13, 2013
Vancouver to Kanata, July 17, 2012
61 cents letter rate unpaid
Taxed $1.22 : 61 cents deficiency + 61 cents deficient postage fee
63 cents fee : January 14, 2013 - March 30, 2014
Return to Sender (RTS)
Insufficiently paid letters with a return address were returned to the sender.
Return to sender (RTS) handstamp
The cover below from Toronto was unfranked and returned to the sender. The Toronto office applied the RTS handstamp and the letter was returned to the sender who affixed a 63 cent stamp and remailed the letter.
Toronto to Kanata, March 27, 2014
63 cents Canada Post "offer" letter rate
The 63 cent stamp was affixed over the RTS handstamp
Tax Paid by Addressee
[Not shown]
