[Federal Register Volume 64, Number 213 (Thursday, November 4, 1999)]
[Rules and Regulations]
[Pages 60106-60109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28650]
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POSTAL SERVICE
39 CFR Part 20
Priority Mail Global Guaranteed
AGENCY: Postal Service.
ACTION: Amendment to interim rule.
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SUMMARY: On April 19, 1999, the Postal Service announced in the Federal
Register (62 FR 19039-19042) the introduction of Priority Mail Global
Guaranteed on an interim basis and requested comment from the public.
Comments were received until May 19, 1999. The Postal Service is
amending the interim rule to increase the number of acceptance
locations and destination countries and territories. All other
conditions of service, including rates, remain the same. Additionally,
the Postal Service is responding to the public comments.
EFFECTIVE DATE: November 1, 1999. Comments on the amendment to the
interim rule must be received on or before December 6, 1999.
ADDRESSES: Written comments should be mailed or delivered to the
Manager, International Finance, International Business, U.S. Postal
Service, 475 L'Enfant Plaza SW, Room 370-IBU, Washington, DC 20260-
6500. Copies of all written comments will be available for public
inspection between 9 a.m. and 4 p.m., Monday through Friday, in
International Business, 10th Floor, 901 D Street SW, Washington, DC.
FOR FURTHER INFORMATION CONTACT: Walter J. Grandjean, (202) 314-7256.
SUPPLEMENTARY INFORMATION: On April 19, 1999, the Postal Service
announced in the Federal Register (62 FR 19039-19042) the introduction
of Priority Mail Global Guaranteed on an interim basis and requested
comment from the public.
The U.S. Postal Service, through an alliance with DHL Worldwide
Express Inc., is offering an enhanced expedited service, Priority Mail
Global Guaranteed, from selected locations in the United States to
selected countries. This service offers day-certain delivery with
postage refund guarantee and document reconstruction coverage of $100
for allowable contents. Comments were requested by May 19, 1999.
By that date the Postal Service received comments from one company,
United Parcel Service (UPS), concerning the interim rule. UPS
challenged the service in two areas. First, UPS argued that the Postal
Service-DHL contract pursuant to which the service is provided appears
to be an unauthorized transaction that is contrary to law. Second, UPS
asserts that the rates for Priority Mail Global Guaranteed may be below
cost, in violation of the Postal Reorganization Act.
UPS states that the arrangement with DHL provides for the air
transportation of mail. UPS asserts that this is a contract for air
transportation services and that such a contract must comply with 39
U.S.C. 5402, which requires that contracts be filed with the Secretary
of Transportation, that contracts be for at least 750 pounds of mail
per flight, and that mail transported under contract consist of not
more than 5 percent letter mail by weight. UPS's premise for these
comments, that there is a contract between the Postal Service and DHL
for the transportation of PMGG, is not correct. No such contract has
been made. PMGG items are tendered to DHL as an air carrier authorized
to transport mail by its certificate of public convenience and
necessity in the same manner as mail is tendered to other certificated
air carriers. The rates of compensation for the international air
transportation service performed by DHL are as prescribed by the
Secretary of Transportation under section 41901(b). As there is no
contract for air carriage, there is no basis for UPS's comments in this
respect.
UPS asserts that the rates for Priority Mail Global Guaranteed may
be below
[[Page 60107]]
cost, in violation of the Postal Reorganization Act. The basis for this
assertion is that the rates for Priority Mail Global Guaranteed are
alleged to be as much as 65 percent lower than the published rates
charged by courier companies for comparable services and lower than the
rates charged by DHL for comparable service. UPS further asserts that
the rates for other USPS delivery services are below cost, and that
this also is grounds for suspecting that the rates for Priority Mail
Global Guaranteed are below cost. UPS does not, however, provide any
tangible evidence that the revenues from Priority Mail Global
Guaranteed do not cover costs.
In general, rates for postal services should cover costs over some
relevant period of time. The rates for Priority Mail Global Guaranteed
were designed to do that, based on the unique costs of that service.
Nothing in UPS's comments provides any basis for changing the Postal
Service's conclusion that the rates for Priority Mail Global Guaranteed
cover its costs. The prices courier companies charge for their services
are not probative evidence that rates for Priority Mail Global
Guaranteed are non-compensatory, since courier prices are based on the
costs incurred by those companies and on their perceptions of what
their users are willing to pay for the service provided. Similarly, the
prices charged by DHL for the services it provides by itself are not a
reliable guide to what Priority Mail Global Guaranteed rates should be,
nor do they provide any probative evidence that Priority Mail Global
Guaranteed rates do not cover costs. The costs DHL incurs in its own
services are not the same as the costs the Postal Service incurs in
performing similar functions in providing Priority Mail Global
Guaranteed. Finally, the allegation that the rates for some other
Postal Service offerings do not produce revenues that cover costs does
not provide any evidence that the rates for Priority Mail Global
Guaranteed do not produce revenues that cover costs. The rates for each
Postal Service offering are based on the costs incurred in providing
that particular offering and that offering alone. In each case, Postal
Service offerings are priced to produce revenues greater than costs,
although in rare cases unforeseen circumstances or events can produce
results that might not be as projected. In any event, UPS has provided
no information that would cause the Postal Service to change its view
that the rates developed for Priority Mail Global Guaranteed will
produce revenues greater than costs.
The Postal Service is not adopting a final rule at this time. The
Postal Service is amending the interim rule to increase the number of
metropolitan areas that can accept Priority Mail Global Guaranteed and
the number of destinations to which it may be sent. This is an
expansion of origins and destinations only, and all other conditions of
service remain the same.
Service will be available from the following ZIP Code areas:
------------------------------------------------------------------------
Metropolitan area ZIP code
------------------------------------------------------------------------
Arizona: Phoenix....................... 850, 852-853.
California:
Los Angeles, Oakland, San Francisco/ 900, 902-908, 910-918, 926-928,
San Jose. 937, 939-941, 943-944, 946,
949-951, 954.
Colorado: Denver....................... 802.
Connecticut: Stamford.................. 060-069.
Delaware: Wilmington................... 197-199.
District of Columbia................... 200, 202-203, 205.
Florida:
Fort Lauderdale, Jacksonville, 320, 322, 327-338, 342, 346-
Miami, Orlando, Tampa. 347.
Georgia: Atlanta....................... 300-303, 305-306, 311.
Illinois: Chicago...................... 600-608, 610-611, 620, 622,
629.
Indiana: Indianapolis.................. 460-470, 472-475, 478-479.
Kentucky: Newport...................... 410, 452.
Maine: Portland........................ 039-041.
Maryland: Baltimore.................... 206-212, 214, 217, 219.
Massachusetts: Boston.................. 010-027.
Michigan:
Detroit, Grand Rapids.............. 481-482, 486-491, 493-497, 530-
531.
Minnesota:
Minneapolis, Saint Paul............ 550-551, 553-554, 558-559.
Missouri: St. Louis.................... 630-631, 633.
New Hampshire: Manchester.............. 030-034, 038.
New Jersey:
Jersey City, Newark................ 070-085, 087-089.
New York:
Flushing, New York City............ 100-101, 103-105, 107, 109-119,
124-127.
North Carolina:
Charlotte, Greensboro, Raleigh..... 270-278, 280-282, 286.
Ohio:
Akron, Cincinnati, Cleveland, 430-438, 440-458.
Columbus, Dayton, Toledo,
Youngstown.
Pennsylvania: Philadelphia............. 189-191, 193-196.
Rhode Island: Providence............... 028-029.
Tennessee: Nashville................... 372.
Texas:
Dallas, Fort Worth, Houston, 750-752, 760-764, 769-770, 772-
Lubbock, San Antonio. 778, 780-782, 784, 791, 794.
Virginia: Richmond..................... 201, 220-225, 230-232, 238-239.
Vermont: Burlington.................... 054, 056.
Washington: Seattle.................... 980-982.
Wisconsin: Milwaukee................... 530-532, 534.
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[[Page 60108]]
Service will be available to the following countries and
territories:
Anguilla, Antigua and Barbuda, Aruba, Australia, Austria,
Bahamas, Barbados, Belgium, Bermuda, British Virgin Islands, Canada,
Cayman Islands, Denmark, Dominica, Dominican Republic, Finland,
France (includes Monaco), Germany, Gibraltar, Great Britain and
Northern Ireland (includes Guernsey and Jersey), Greece, Grenada,
Guadeloupe (includes St. Barthelemey), Haiti, Hong Kong, Indonesia,
Ireland, Italy, Jamaica, Korea, Republic of (South Korea),
Liechtenstein, Luxembourg, Macao, Malaysia, Malta, Martinique,
Mexico, Montserrat, Netherlands, Netherlands Antilles (includes
Bonaire, Curacao, St. Eustatius, and St. Maarten), New Zealand,
Norway, Philippines, Portugal, Saint Christopher (St. Kitts) and
Nevis, Saint Lucia, Saint Vincent and the Grenadines, Singapore,
Spain (includes Canary Islands), Sweden, Switzerland, Taiwan,
Thailand, Trinidad and Tobago, Turks and Caicos Islands, and
Vietnam.
Although the Postal Service is exempted by 39 U.S.C. 410(a) from
the advance notice requirements of the Administrative Procedure Act
regarding proposed rulemaking (5 U.S.C. 553), the Postal Service
invites public comment on the amendment to the interim rule at the
above address.
The Postal Service is amending International Mail Manual Chapter 2,
Conditions for Mailing, which is incorporated by reference in the Code
of Federal Regulations. See 39 CFR 20.1.
A transmittal letter changing the relevant pages in the
International Mail Manual will be published and automatically
transmitted to all subscribers. Notice of issuance of the transmittal
will be published in the Federal Register as provided by 39 CFR 20.3.
List of Subjects in 39 CFR Part 20
Foreign relations, International postal service.
The Postal Service adopts the following amendments to the
International Mail Manual.
PART 20--[AMENDED]
1. The authority citation for 39 CFR Part 20 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407, 408.
2. Chapter 2 of the International Mail Manual is amended as
follows:
2 Conditions for Mailing
* * * * *
210 Express Mail International Service
* * * * *
215 Priority Mail Global Guaranteed
* * * * *
215.3 Service Areas
215.31 Origins
Priority Mail Global Guaranteed service is available only from the
following ZIP Code areas:
------------------------------------------------------------------------
Metropolitan area ZIP code
------------------------------------------------------------------------
Arizona: Phoenix....................... 850, 852-853.
California:
Los Angeles, Oakland, San Francisco/ 900, 902-908, 910-918, 926-928,
San Jose. 937, 939-941, 943-944, 946,
949-951, 954.
Colorado: Denver....................... 802.
Connecticut: Stamford.................. 060-069.
Delaware: Wilmington................... 197-199.
District of Columbia................... 200, 202-203, 205.
Florida:
Fort Lauderdale, Jacksonville, 320, 322, 327-338, 342, 346-
Miami, Orlando, Tampa. 347.
Georgia: Atlanta....................... 300-303, 305-306, 311.
Illinois: Chicago...................... 600-608, 610-611, 620, 622,
629.
Indiana: Indianapolis.................. 460-470, 472-475, 478-479.
Kentucky: Newport...................... 410, 452.
Maine: Portland........................ 039-041.
Maryland: Baltimore.................... 206-212, 214, 217, 219.
Massachusetts: Boston.................. 010-027.
Michigan: Detroit, Grand Rapids........ 481-482, 486-491, 493-497, 530-
531.
Minnesota:
Minneapolis, Saint Paul............ 550-551, 553-554, 558-559.
Missouri: St. Louis.................... 630-631, 633.
New Hampshire: Manchester.............. 030-034, 038.
New Jersey: Jersey City Newark 070-085, 087-089.
Newark.............................
New York: Flushing, New York City...... 100-101, 103-105, 107, 109-119,
124-127.
North Carolina: Charlotte, Greensboro, 270-278, 280-282, 286.
Raleigh.........................
Ohio:
Akron, Cincinnati, Cleveland, 430-438, 440-458.
Columbus, Dayton, Toledo,
Youngstown.
Pennsylvania: Philadelphia............. 189-191, 193-196.
Rhode Island: Providence............... 028-029.
Tennessee: Nashville................... 372.
Texas:
Dallas, Fort Worth, Houston, 750-752, 760-764, 769-770, 772-
Lubbock, San Antonio. 778, 780-782, 784, 791, 794.
Virginia: 201, 220-225, 230-232, 238-239.
Richmond..............................
..........
Vermont: Burlington.................... 054, 056.
Washington: 980-982.
Seattle...............................
........
Wisconsin: 530-532, 534.
Milwaukee.............................
...........
------------------------------------------------------------------------
[[Page 60109]]
215.32 Destinations
Priority Mail Global Guaranteed service is available only to the
following countries and territories:
Anguilla, Antigua and Barbuda, Aruba, Australia, Austria, Bahamas,
Barbados, Belgium, Bermuda, British Virgin Islands, Canada, Cayman
Islands, Denmark, Dominica, Dominican Republic, Finland, France
(includes Monaco), Germany, Gibraltar, Great Britain and Northern
Ireland (includes Guernsey and Jersey), Greece, Grenada, Guadeloupe
(includes St. Barthelemey), Haiti, Hong Kong, Indonesia, Ireland,
Italy, Jamaica, Korea, Republic of (South Korea), Liechtenstein,
Luxembourg, Macao, Malaysia, Malta, Martinique, Mexico, Montserrat,
Netherlands, Netherlands Antilles (includes Bonaire, Curacao, St.
Eustatius, and St. Maarten), New Zealand, Norway, Philippines,
Portugal, Saint Christopher (St. Kitts) and Nevis, Saint Lucia,
Saint Vincent and the Grenadines, Singapore, Spain (includes Canary
Islands), Sweden, Switzerland, Taiwan, Thailand, Trinidad and
Tobago, Turks and Caicos Islands, and Vietnam.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-28650 Filed 11-3-99; 8:45 am]
BILLING CODE 7710-12-P