[Federal Register Volume 71, Number 78 (Monday, April 24, 2006)]
[Proposed Rules]
[Pages 20930-20931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-6104]


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POSTAL RATE COMMISSION

39 CFR Part 3001

[Docket No. MC2006-4; Order No. 1462]


Classification Changes for Express Mail Second Day Service

AGENCY: Postal Rate Commission.

ACTION: Notice of new docket and proposed rulemaking.

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SUMMARY: This order announces a mail classification docket to consider 
and clarify domestic mail classification schedule language pertaining 
to Express Mail Second Day service. The proposed change, if adopted, 
will help clarify delivery guarantees.

DATES: Deadline for filing notices of intervention and comments on 
Notice of Inquiry and need for a hearing: May 3, 2006; Deadline for 
filing replies to comments on Notice of Inquiry: May 10, 2006.

ADDRESSES: File all documents referred to in this order electronically 
via the Commission's Filing Online system at http://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, 202-789-6820.

SUPPLEMENTARY INFORMATION: Notice is hereby given that pursuant to 39 
U.S.C. 3623(b), the Commission is instituting a mail classification 
case to consider and clarify the language of the Domestic Mail 
Classification Schedule (DMCS) pertaining to Express Mail Second Day 
service. This classification case is in response to the issues brought 
to light in count 3 of the Complaint on Express Mail filed under 39 
U.S.C. 3662 and docketed by the Commission as Docket No. C2005-1,\1\ 
and upon the statements, proffers and admissions offered by Postal 
Service counsel in the Postal Service's Answer in that proceeding.\2\

Background

    The Commission's views on the necessity and desirability for DMCS 
clarification on Express Mail Second Day service are explained in more 
detail in Order No. 1461. The primary focus of this proceeding is on 
how best to clearly state in the DMCS the scope of Second Day Express 
Mail service that the Postal Service intends to provide its customers. 
As it stands, several DMCS provisions call for second day delivery, 
when, in certain limited circumstances, the Postal Service has admitted 
that it does not expect to provide delivery until the third or fourth 
day. Delivery on the third or fourth day is nonetheless second delivery 
day delivery--mail that would have been delivered on the second 
calendar day except that Sunday or holiday delivery is not available at 
that particular destination. This proceeding is an attempt to promptly 
remedy that inconsistency and harmonize the ``refund'' section of the 
Express Mail DMCS language regarding Second Day service with the 
``availability'' section.\3\
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    \1\ Douglas F. Carlson Complaint on Express Mail, February 18, 
2005 (Complaint).
    \2\ Answer of United States Postal Service, May 5, 2005 
(Answer).
    \3\ Compare DMCS section 182.4 with section 123.1.
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Intervention

    Those wishing to be heard in this matter are directed to file a 
notice of intervention on or before May 3, 2006. The notice of 
intervention shall be filed using the Internet (Filing Online) at the 
Commission's Web site (http://www.prc.gov), unless a waiver is obtained 
for hardcopy filing. Rules 9(a) and 10(a) [39 CFR 3001.9(a) and 39 CFR 
3001.10(a)]. Notices should indicate whether participation will be on a 
full or limited basis and may include procedural suggestions. See rules 
20 and 20a [39 CFR 3001.20 and CFR 3001.20a]. No decision has been made 
at this point on whether a hearing will be held in this case.

Notice of Inquiry

    The current ``availability'' subsection of the Expedited Mail 
section of the DMCS is as follows:

123 Next Day Service and Second Day Service

    123.1 Availability of Services. Next Day and Second Day Services 
are available at designated retail postal facilities to designated 
destination facilities or locations for items tendered by the time 
or times specified by the Postal Service. Next Day Service is 
available for overnight delivery. Second Day Service is available 
for second day delivery.
    The Commission recognizes that, ``[o]ver time, because of 
ambiguities or imprecise language, it becomes necessary to amend the 
DMCS to clarify or correct language that has led to 
misinterpretations in the application of the DMCS to specific types 
of mail matter.'' PRC Op. C85-1, para. 066. In that light, the 
Commission proposes to clarify the current DMCS language regarding 
the availability of Second Day service. The Commission proposes 
changes based upon statements made by the Postal Service in its 
Answer to the Complaint filed in C2005-1 as to the service it 
intends to provide its customers.\4\ Clarification is especially 
important since, as the Postal Service noted, the ``refund'' 
provision only provides for refunds for Second Day service if an 
Express Mail package is not delivered on the second delivery day.\5\ 
This anomalous result occurs even if second calendar day delivery is 
promised to a customer and yet the mailpiece is not delivered until 
the second delivery day, see DMCS section 182.4.
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    \4\ Specifically, the ``Postal Service admits that, when 
customers send Express Mail on Fridays to destinations for which 
Next Day Service is not available, or when customers' Express Mail 
is accepted on Fridays after the cut-off time for Next Day Service, 
their Express Mail is guaranteed for delivery on Monday (or Tuesday, 
if Monday is a holiday) unless the destination ZIP Code is one in 
which Sunday and holiday delivery is available.'' Answer at 13.
    \5\ Id. at 11-12.
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Proposed Change

    Accordingly, the Commission proposes the following clarifying 
changes to the current DMCS:

123 Next Day Service and Second Day Service

    123.1 Availability of Services. Next Day and Second Day Services 
are available at designated retail postal facilities to designated 
destination facilities or locations for items tendered by the time 
or times specified by the Postal Service. Next Day Service is 
available for overnight delivery. Second Day Service is available 
for delivery on the second delivery day as specified by the Postal 
Service.

    Participants are invited to submit comments on the proposed DMCS 
changes presented above on or before May 3, 2006. Reply comments may be 
submitted on or before May 10, 2006.

[[Page 20931]]

    Necessity of a prehearing conference. Given the limited scope of 
this proceeding, the Commission will determine an appropriate 
procedural schedule after evaluating comments on its Notice of Inquiry. 
Participants shall file pleadings identifying and discussing the 
matters that would indicate the need to schedule a prehearing 
conference or a hearing, along with other matters referred to in this 
order by May 3, 2006.
    Representation of the general public. In conformance with section 
3624(a) of title 39, the Commission designates Shelley S. Dreifuss, 
director of the Commission's Office of the Consumer Advocate, to 
represent the interests of the general public in this proceeding. 
Pursuant to this designation, Ms. Dreifuss will direct the activities 
of Commission personnel assigned to assist her and, upon request, will 
supply their names for the record. Neither Ms. Dreifuss nor any of the 
assigned personnel will participate in or provide advice on any 
Commission decision in this proceeding.

Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2006-4, Classification 
Changes for Express Mail Second Day Service to consider clarifying the 
DMCS language related to Second Day Express Mail service and other 
germane issues.
    2. The Commission will sit en banc in this proceeding.
    3. The deadline for filing notices of intervention is May 3, 2006.
    4. Notices of intervention shall indicate the nature of the 
intervening party's participation in the case.
    5. Participants are invited to submit comments on the Notice of 
Inquiry and the proposed DMCS change on or before May 3, 2006. Reply 
comments may be submitted on or before May 10, 2006.
    6. Shelley S. Dreifuss, director of the Commission's Office of the 
Consumer Advocate, is designated to represent the interests of the 
general public.
    7. The Secretary shall arrange for publication of this document in 
the Federal Register.

    Dated: April 19, 2006.
Steven W. Williams,
Secretary.

List of Subjects in 39 CFR Part 3001

    Administrative practice and procedure, Postal Service.

    For the reasons discussed above, the Commission proposes to amend 
39 CFR part 3001 as follows:

PART 3001--RULES OF PRACTICE AND PROCEDURE

    1. The authority citation for part 3001 continues to read as 
follows:

    Authority: 39 U.S.C. 404(b); 3603; 3622-24; 3661, 3662, 3663.

    2. Amend Appendix A to Subpart C--Postal Services Rates and Charges 
by revising 123.1 to read as follows:

    123.1 Availability of Services. Next Day and Second Day Services 
are available at designated retail postal facilities to designated 
destination facilities or locations for items tendered by the time 
or times specified by the Postal Service. Next Day Service is 
available for overnight delivery. Second Day Service is available 
for delivery on the second delivery day as specified by the Postal 
Service.

[FR Doc. E6-6104 Filed 4-21-06; 8:45 am]
BILLING CODE 7710-FW-P