[Federal Register Volume 73, Number 226 (Friday, November 21, 2008)]
[Notices]
[Pages 70682-70683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27746]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2009-7 and R2009-1; Order No. 133]


Market Dominant Product Prices Bilateral Negotiated Service 
Agreement

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add the Canada Post--United States Postal Service 
Contractual Bilateral Agreement for Inbound Market Dominant Services to 
the Market Dominant Product List. The Postal Service has also filed a 
related contract. This notice addresses procedural steps associated 
with these filings.

DATES: Comments are due December 3, 2008.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 and [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On November 13, 2008, the Postal Service filed a request pursuant 
to 39 U.S.C. 3622(c)(10) and 3642, and 39 CFR 3010.40 et seq. and 
3020.30 et seq. to add the Canada Post--United States Postal Service 
Contractual Bilateral Agreement for Inbound Market Dominant Services 
(Bilateral Agreement) to the Market Dominant Product List.\1\ This 
Request has been assigned Docket No. MC2009-7.
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    \1\ Request of the United States Postal Service to Add Canada 
Post--United States Postal Service Contractual Bilateral Agreement 
for Inbound Market Dominant Services to the Market Dominant Product 
List, Notice of Type 2 Rate Adjustment, and Notice of Filing 
Agreement (Under Seal), November 13, 2008 (Request).

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[[Page 70683]]

    The Postal Service contemporaneously filed notice that the 
Governors have authorized a Type 2 rate adjustment to establish rates 
for inbound market dominant services as reflected in the Bilateral 
Agreement.\2\ More specifically, the Bilateral Agreement, which has 
been assigned Docket No. R2009-1, governs the exchange of inbound air 
and surface letters post (LC/AO) and Xpresspost from Canada.\3\
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    \2\ Type 2 rate adjustments involve negotiated service 
agreements. See 39 CFR 3010.5.
    \3\ To elaborate, the Bilateral Agreement covers Letter Post, 
including letters, flats, packets, containers, and International 
Registered Mail service ancillary thereto, and Canada Post's 
Xpresspost, which consists of documents and packages containing 
merchandise. Request at 3.
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    The Request includes two attachments. Attachment 1 sets forth 
proposed Mail Classification Schedule language; Attachment 2 provides a 
Statement of Supporting Justification as required by 39 CFR 3020.32. In 
addition, the Postal Service indicates that it filed an unredacted copy 
of the contract and supporting materials under seal. Request at 2, n.2.
    In the Statement of Supporting Justification, Lea Emerson, 
Executive Director, International Postal Affairs, reviews the factors 
of section 3622(c) and concludes, inter alia, that the revenues 
generated will cover the attributable costs of the services offered 
under the Bilateral Agreement; that the rates are preferable to default 
rates set by the Universal Postal Union; and that the rates represent a 
modest increase over those reflected in the existing bilateral 
agreement with Canada Post. Request, Attachment 2, at 2-4.
    In its Request, the Postal Service provides information responsive 
to part 3010, subpart D of the Commission's rules. To that end, it 
addresses the requirements of section 3622(c)(10) as well as certain 
details of the negotiated service agreement. Request at 2-7. The Postal 
Service asserts that the Bilateral Agreement satisfies all applicable 
statutory criteria. Id. at 7-8.
    The Postal Service filed much of the supporting materials, 
financial analysis, and specific Bilateral Agreement under seal. Id. at 
2, n.2. The Postal Service maintains that the Bilateral Agreement and 
related financial information should remain under seal, as they contain 
pricing, cost, and other information that are highly confidential. Id. 
at 2.\4\
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    \4\ The Postal Service indicates that the materials filed under 
seal constitute a subset of the overarching agreement between the 
parties. Although unstated, presumably the subset represents the 
parties' agreement concerning inbound market dominant services. The 
Postal Service further indicates that the parties anticipate 
finalizing ``this and related agreements by mid-December, and any 
lingering details will not affect the rates, classification, or 
other fundamental basis for this Request and Notice.'' Request at 3, 
n.4.
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    The Postal Service has an existing bilateral agreement with Canada 
Post which is set to expire December 31, 2008. Id. at 8. The Bilateral 
Agreement represents a one-year extension of the existing agreement, 
with some modifications. It has a planned effective date of January 1, 
2009. Id. at 3. The Postal Service urges the Commission to act promptly 
to allow the rates to be implemented under 39 CFR 3010.40. Id. at 8.

II. Notice of Filings

    Pursuant to 39 U.S.C. sections 3622 and 3642, the Commission 
establishes Docket Nos. MC2009-7 and R2009-1 for consideration of the 
Request pertaining to the proposed Canada Post--United States Postal 
Service Contractual Bilateral Agreement product and the related 
Bilateral Agreement, respectively. In keeping with practice, these 
dockets are addressed on a consolidated basis for purposes of this 
Order; however, future filings should be made in the specific docket in 
which issues being addressed pertain.
    Interested persons may submit comments on whether the Postal 
Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3622, 3642, 39 CFR part 3010.40, and 39 CFR 3020 
subpart B. Because the Commission is addressing these dockets on a 
consolidated basis, the due dates for comments are December 3, 2008. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.

It is Ordered

    1. The Commission establishes Docket Nos. MC2009-7 and R2009-1 for 
consideration of the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than December 3, 2008.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Steven W. Williams,
Secretary.
 [FR Doc. E8-27746 Filed 11-20-08; 8:45 am]
BILLING CODE 7710-FW-P