[Federal Register Volume 74, Number 152 (Monday, August 10, 2009)]
[Notices]
[Pages 39980-39981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19083]


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POSTAL REGULATORY COMMISSION

 [Docket No. CP2009-57; Order No. 271]


International Mail Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Postal Service recently filed with the Commission notice 
of changes in rates for Inbound International Expedited Services 2. 
This document establishes a docket for consideration of the filing, 
provides public notice of the filing, and invites public comment.

DATES: Comments are due August 12, 2009.

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, 
at 202-789-6820 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction
II. Background
III. Notice of Filing
IV. Supplemental Information
V. Ordering Paragraphs

I. Introduction

    On July 28, 2009, the Postal Service filed a notice announcing 
changes in rates not of general applicability for Inbound International 
Expedited Services 2 effective January 1, 2010.\1\ The Postal Service 
attached a redacted copy of the 2010 rates and a certified statement 
establishing compliance with 39 U.S.C. 3633 and 39 CFR 3015.5(c)(2) to 
the Notice as Attachments 1 and 2, respectively. Id. at 2. The Postal 
Service also submitted a listing of countries in each pricing tier and 
incorporated by reference the description of Inbound International 
Expedited Services 2 contained in its supporting documentation filed in 
Docket Nos. MC2009-10 and CP2009-12. The Postal Service submitted the 
rates, related financial information, and certified statement required 
by 39 CFR 3015.5(c)(2) under seal.
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    \1\ Notice of the United States Postal Service of Filing of 
Changes in Rates Not of General Applicability, July 28, 2009 
(Notice).
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II. Background

    The Notice states that in Docket No. MC2009-10, the Governors 
established prices and classifications not of general applicability for 
Inbound Express Mail International (EMS). In Order No. 162, the 
Commission added Inbound International Expedited Services 2 to the 
Competitive Product List as a new product under Express Mail, Inbound 
International Expedited Services.\2\ The rates took effect on January 
1, 2009.
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    \2\ See PRC Order No. 162, Docket Nos. MC2009-10, CP2009-12, 
Order Adding Inbound International Expedited Services 2 To 
Competitive Product List, December 31, 2008.
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    In accordance with the provisions of the EMS Cooperative of the 
Universal Postal Union (UPU), rates for the delivery of inbound Express 
Mail International must be communicated to the UPU by August 31 of the 
year before which they are to take effect. As a member of the EMS 
Cooperative, the Postal Service may not change its rates for the coming 
year after August 31. In Order No. 162, the Commission raised concerns 
with filing these rates with the

[[Page 39981]]

Commission after August 31, even though they do not take effect until 
January 1 of the following year. The Commission indicated that if a 
product is found to violate the Postal Accountability and Enhancement 
Act (PAEA), e.g., does not satisfy section 3633(a)(2), the Postal 
Service may be without a suitable remedy until the rate change is 
permitted for the following year. Id. at 9. The Commission, therefore, 
appreciates the Postal Service's filing the 2010 rates well in advance 
of the August 31, 2009 UPU deadline.
    In its Notice, the Postal Service indicates that the rates to take 
effect in 2010 are divided into two tiers. Tier one applies to postal 
operators with a performance-level agreement, such as EMS Pay-for-
performance Plan participants and Kahala Posts Group. Tier two applies 
to all other postal operators that transmit EMS to the United States. 
Notice at 2-3. The Postal Service provided a listing of countries in 
each tier, noting that this list may be subject to change on January 1, 
2010. Id.; Attachment 3.
    The Postal Service states that the China Post Group, whose inbound 
EMS rates were established by a bilateral agreement approved by the 
Commission in Docket Nos. CP2008-6 and CP2008-7, is expected to join 
Tier 1 grouping. Id. at 3. The parties have agreed to have the 
bilateral agreement expire at the end of the one-year term. Id. at 3.
    The Postal Service maintains that the rates, related financial 
information, and certain portions of the certified statement required 
by 39 CFR 3015.5(c)(2), should remain under seal. Id. at 4.

III. Notice of Filing

    The Commission establishes Docket No. CP2009-57 for consideration 
of matters related to the issues identified in the Postal Service's 
Notice.
    Interested persons may submit comments on whether the Postal 
Service's contract is consistent with the policies of 39 U.S.C. 3632, 
3622 or 3642. Comments are due no later than August 12, 2009. 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 as Public Representative 
in this proceeding.

IV. Supplemental Information

    Pursuant to 39 CFR 3015.6, the Commission requests the Postal 
Service to provide the following supplemental information by no later 
than August 10, 2009:
    1. Please provide the 2010 EMS Pay for Performance Plan that will 
apply to EMS Cooperative members.
    2. Please provide the Postal Service's EMS Cooperative Report 
Cards, including performance measurements, for calendar year 2008 and 
the first three quarters of 2009, if available.
    3. In Excel file WP--Inbound--EMS--2009.07.28, worksheet 02--
Narrative, cell C107, the Postal Service makes an assumption about 
arrival scan performance. Please explain this assumption further, its 
rationale, and how its application comports with the provisions of the 
2010 EMS Pay for Performance Plan and the Postal Service's performance.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2009-57 for 
consideration of the issues raised in this docket.
    2. Comments by interested persons in these proceedings are due no 
later than August 12, 2009.
    3. 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.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    Issued: August 4, 2009.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-19083 Filed 8-7-09; 8:45 am]
BILLING CODE 7710-FW-P