[Federal Register Volume 74, Number 187 (Tuesday, September 29, 2009)]
[Rules and Regulations]
[Pages 49823-49825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23488]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3020

[Docket No. CP2009-50; Order No. 290]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission is adding Global Expedited Package Services 1 
(CP2008-4) to the Competitive Product List. In addition, Global 
Expedited Package Services 2 will also be included as a new category. 
This action is consistent with changes in a recent law governing postal 
operations. Republication of the lists of market dominant and 
competitive products is also consistent with new requirements in the 
law.

DATES: Effective September 29, 2009 and is applicable beginning August 
28, 2009.

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

SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 36538 (July 23, 
2009).

I. Introduction
II. Discussion
III. Ordering Paragraphs

I. Introduction

    In Order No. 262, the Commission authorized the inclusion of an 
additional Global Expedited Package Service (GEPS) contract within the 
Global Expedited Package Services 1 (GEPS 1) product.\1\ The Postal 
Service seeks clarification of that order.\2\ In its initial filing in 
this docket, the Postal Service sought to have the instant contract 
designated as the new baseline agreement for purposes of determining 
the functional equivalence of future GEPS contracts.\3\ The issue was 
not addressed substantively in Order No. 262. Noting that the GEPS 1 
contract currently serving as the baseline will terminate and be 
removed from the Competitive Product List, the Postal Service requests 
clarification ``concerning the contract and docket number that it 
should use for future filings of additional contracts to be added to 
the GEPS 1 product.'' Request at 2. By this order, the Commission 
grants clarification.
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    \1\ See PRC Order No. 262, Order Concerning Filing of Additional 
Global Expedited Package Services 1 Negotiated Services Agreement, 
July 29, 2009 (Order No. 262).
    \2\ United States Postal Service Response to Order No. 262 
Concerning Termination Date of Additional Global Expedited Package 
Services 1 Negotiated Service Agreement and Request for 
Clarification, July 30, 2009, at 2 (Request). No party filed a 
response to the Request.
    \3\ Notice of United States Postal Service Filing of 
Functionally Equivalent Global Expedited Package Services 1 
Negotiated Service Agreement, July 16, 2009, at 2, 7 (Notice).
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II. Discussion

    In its initial Notice, the Postal Service asserts the new GEPS 1 
contract is functionally equivalent to previous GEPS contracts, that it 
should be included within the GEPS 1 product, ``and it should become 
the new baseline agreement for determining whether future contracts are 
functionally equivalent.'' Notice at 2. In support of its contention 
that the instant contract is functionally equivalent, the Postal 
Service states that it shares similar cost and market characteristics 
with previously filed GEPS 1 contracts. Id. at 4. It also contends that 
the contract meets the criteria established in Governors' Decision 08-
7. Furthermore, the Postal Service identifies various similarities with 
other GEPS 1 contracts, e.g., mailers are small and medium-sized 
businesses, the contract is for one year, and payment by permit 
imprint, as well as various differences, e.g., volume or postage 
commitments. Id. at 4-5. In addition, the Postal Service identifies 
various provisions, which it characterizes as minor or incidental, 
which differ from those contained in the initial GEPS 1 contract. These 
include, for example, clarifying the availability of other postal 
products, simplifying notice of mailing requirements, and changes not 
related to either party's obligation under the agreement. Id. at 5-7.
    In its Notice, the Postal Service does not expand on its request 
that the instant contract ``be considered the baseline agreement for 
determining functional equivalence for additional agreements.'' Id. at 
7.\4\ Apparently, because the initial GEPS 1 contract is terminating 
and provisions have been added to subsequent GEPS 1 contracts, the 
Postal Service suggests that the instant GEPS 1 contract be designated 
as the baseline for purposes of determining the functional equivalence 
of future GEPS contracts.
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    \4\ The Postal Service references PRC Order No. 227 issued in 
Docket No. CP2009-35 and states that ``[t]he only additional 
difference between the agreement currently presented in this instant 
docket and the one presented in Docket No. CP2009-35 is the tender 
provision, which is described further below. Id. at 4, n.6.
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    The Commission's expectation in labeling the initial GEPS contract 
(in Docket No. CP2008-5) as GEPS 1 was that it would be followed 
sequentially by additional GEPS contracts, e.g., GEPS 2, GEPS 3, etc., 
that exhibited sufficient variation from the initial contract to 
warrant being classified as a new product. Given that the initial GEPS 
1 contract is expiring and that the instant contract contains 
additional provisions, the Commission will label the latter as GEPS 
2.\5\ Following the current practice, the Postal Service shall identify 
all significant differences between any new GEPS contract and the GEPS 
2 product. Such differences would include terms and conditions that 
impose new obligations or new requirements on any party to the 
contract. The docket referenced in the caption should be Docket No. 
CP2009-50, in lieu of Docket No. CP2008-4. Following the current 
practice, a redacted copy of Governors' Decision 08-7 should be 
included in the new filing along with an electronic link to it.\6\
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    \5\ This designation would also apply to GEPS contracts filed 
subsequent to the one in Docket No. CP2009-50, namely Docket Nos. 
CP2009-51, CP2009-52, CP2009-53, CP2009-58, and CP2009-59.
    \6\ The Postal Service requests that the Inbound Direct Entry 
(IDE) contract filed in Docket No. CP2009-62 be considered the new 
baseline agreement for future IDE contracts. Absent a showing 
otherwise, the Commission intends to act on this request in a 
similar manner.
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    Future requests to implement a new baseline agreement should be 
filed as an MC docket since it will result in adding a new product to 
the product list and may result in removing a product from the product 
list.\7\
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    \7\ See e.g., Docket Nos. MC2009-34 and CP2009-24, Request of 
the United States Postal Service to Add Express Mail Contract 4 to 
Competitive Product List and Notice of Establishment of Rates and 
Class Not of General Applicability, July 6, 2009.
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III. Ordering Paragraphs

    It is ordered:
    1. The GEPS contract filed in Docket No. CP2009-50 is added to the 
Competitive Product List as a new product, Global Expedited Package

[[Page 49824]]

Services 2 (Docket No. CP2009-50) under Negotiated Service Agreements, 
International.
    2. The additional GEPS contracts filed in Docket Nos. CP2009-51, 
CP2009-52, CP2009-53, CP2009-58, and CP2009-59 will be classified as 
GEPS 2 contracts and be included within the Global Expedited Package 
Services 2 product (Docket No. CP2009-50).
    3. The Secretary shall arrange for publication of this order in the 
Federal Register.

List of Subjects in 39 CFR Part 3020

    Administrative practice and procedure; Postal Service.

    By the Commission.
Shoshana M. Grove,
Secretary.

0
For the reasons stated in the preamble, under the authority at 39 
U.S.C. 503, the Postal Regulatory Commission amends 39 CFR part 3020 as 
follows:

PART 3020--PRODUCT LISTS

0
1. The authority citation for part 3020 continues to read as follows:

    Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.


0
2. Revise Appendix A to Subpart A of Part 3020--Mail Classification 
Schedule to read as follows:

Appendix A to Subpart A of Part 3020--Mail Classification Schedule

Part A--Market Dominant Products

1000 Market Dominant Product List

First-Class Mail
    Single-Piece Letters/Postcards
    Bulk Letters/Postcards
    Flats
    Parcels
    Outbound Single-Piece First-Class Mail International
    Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
    High Density and Saturation Letters
    High Density and Saturation Flats/Parcels
    Carrier Route
    Letters
    Flats
    Not Flat-Machinables (NFMs)/Parcels
Periodicals
    Within County Periodicals
    Outside County Periodicals
Package Services
    Single-Piece Parcel Post
    Inbound Surface Parcel Post (at UPU rates)
    Bound Printed Matter Flats
    Bound Printed Matter Parcels
    Media Mail/Library Mail
Special Services
    Ancillary Services
    International Ancillary Services
    Address List Services
    Caller Service
    Change-of-Address Credit Card Authentication
    Confirm
    International Reply Coupon Service
    International Business Reply Mail Service
    Money Orders
    Post Office Box Service
Negotiated Service Agreements
    HSBC North America Holdings Inc. Negotiated Service Agreement
    Bookspan Negotiated Service Agreement
    Bank of America Corporation Negotiated Service Agreement
    The Bradford Group Negotiated Service Agreement
    Inbound International
    Canada Post--United States Postal Service Contractual Bilateral 
Agreement for Inbound Market Dominant Services

Market Dominant Product Descriptions

First-Class Mail
[Reserved for Class Description]
    Single-Piece Letters/Postcards
    [Reserved for Product Description]
    Bulk Letters/Postcards
    [Reserved for Product Description] Flats
    [Reserved for Product Description] Parcels
    [Reserved for Product Description]
    Outbound Single-Piece First-Class Mail International
    [Reserved for Product Description]
    Inbound Single-Piece First-Class Mail International
    [Reserved for Product Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
    High Density and Saturation Letters
    [Reserved for Product Description]
    High Density and Saturation Flats/Parcels
    [Reserved for Product Description]
    Carrier Route
    [Reserved for Product Description] Letters
    [Reserved for Product Description] Flats
    [Reserved for Product Description]
    Not Flat-Machinables (NFMs)/Parcels
    [Reserved for Product Description]
Periodicals
[Reserved for Class Description]
    Within County Periodicals
    [Reserved for Product Description]
    Outside County Periodicals
    [Reserved for Product Description]
Package Services
[Reserved for Class Description]
    Single-Piece Parcel Post
    [Reserved for Product Description]
    Inbound Surface Parcel Post (at UPU rates)
    [Reserved for Product Description]
    Bound Printed Matter Flats
    [Reserved for Product Description]
    Bound Printed Matter Parcels
    [Reserved for Product Description]
    Media Mail/Library Mail
    [Reserved for Product Description]
Special Services
[Reserved for Class Description]
    Ancillary Services
    [Reserved for Product Description]
    Address Correction Service
    [Reserved for Product Description]
    Applications and Mailing Permits
    [Reserved for Product Description]
    Business Reply Mail
    [Reserved for Product Description]
    Bulk Parcel Return Service
    [Reserved for Product Description]
    Certified Mail
    [Reserved for Product Description]
    Certificate of Mailing
    [Reserved for Product Description]
    Collect on Delivery
    [Reserved for Product Description]
    Delivery Confirmation
    [Reserved for Product Description]
    Insurance
    [Reserved for Product Description]
    Merchandise Return Service
    [Reserved for Product Description]
    Parcel Airlift (PAL)
    [Reserved for Product Description]
    Registered Mail
    [Reserved for Product Description]
    Return Receipt
    [Reserved for Product Description]
    Return Receipt for Merchandise
    [Reserved for Product Description]
    Restricted Delivery
    [Reserved for Product Description]
    Shipper-Paid Forwarding
    [Reserved for Product Description]
    Signature Confirmation
    [Reserved for Product Description]
    Special Handling
    [Reserved for Product Description]
    Stamped Envelopes
    [Reserved for Product Description]
    Stamped Cards
    [Reserved for Product Description]
    Premium Stamped Stationery
    [Reserved for Product Description]
    Premium Stamped Cards
    [Reserved for Product Description]
    International Ancillary Services
    [Reserved for Product Description]
    International Certificate of Mailing
    [Reserved for Product Description]
    International Registered Mail
    [Reserved for Product Description]
    International Return Receipt
    [Reserved for Product Description]
    International Restricted Delivery
    [Reserved for Product Description]
    Address List Services
    [Reserved for Product Description]
    Caller Service
    [Reserved for Product Description]
    Change-of-Address Credit Card Authentication
    [Reserved for Product Description]
    Confirm
    [Reserved for Product Description]
    International Reply Coupon Service
    [Reserved for Product Description]
    International Business Reply Mail Service
    [Reserved for Product Description]
    Money Orders
    [Reserved for Product Description]
    Post Office Box Service
    [Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
    HSBC North America Holdings Inc. Negotiated Service Agreement
    [Reserved for Product Description]
    Bookspan Negotiated Service Agreement
    [Reserved for Product Description]
    Bank of America Corporation Negotiated Service Agreement
    The Bradford Group Negotiated Service Agreement

Part B--Competitive Products

2000 Competitive Product List

Express Mail

[[Page 49825]]

    Express Mail
    Outbound International Expedited Services
    Inbound International Expedited Services
    Inbound International Expedited Services 1 (CP2008-7)
    Inbound International Expedited Services 2 (MC2009-10 and 
CP2009-12)
Priority Mail
    Priority Mail
    Outbound Priority Mail International
    Inbound Air Parcel Post
    Royal Mail Group Inbound Air Parcel Post Agreement
Parcel Select
Parcel Return Service
International
    International Priority Airlift (IPA)
    International Surface Airlift (ISAL)
    International Direct Sacks--M-Bags
    Global Customized Shipping Services
    Inbound Surface Parcel Post (at non-UPU rates)
    Canada Post--United States Postal Service Contractual Bilateral 
Agreement for Inbound Competitive Services (MC2009-8 and CP2009-9)
    International Money Transfer Service
    International Ancillary Services
Special Services
    Premium Forwarding Service
Negotiated Service Agreements
    Domestic
    Express Mail Contract 1 (MC2008-5)
    Express Mail Contract 2 (MC2009-3 and CP2009-4)
    Express Mail Contract 3 (MC2009-15 and CP2009-21)
    Express Mail Contract 4 (MC2009-34 and CP2009-45)
    Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
    Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009-
14)
    Express Mail & Priority Mail Contract 3 (MC2009-13 and CP2009-
17)
    Express Mail & Priority Mail Contract 4 (MC2009-17 and CP2009-
24)
    Express Mail & Priority Mail Contract 5 (MC2009-18 and CP2009-
25)
    Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009-
42)
    Express Mail & Priority Mail Contract 7 (MC2009-32 and CP2009-
43)
    Express Mail & Priority Mail Contract 8 (MC2009-33 and CP2009-
44)
    Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
    Priority Mail Contract 1 (MC2008-8 and CP2008-26)
    Priority Mail Contract 2 (MC2009-2 and CP2009-3)
    Priority Mail Contract 3 (MC2009-4 and CP2009-5)
    Priority Mail Contract 4 (MC2009-5 and CP2009-6)
    Priority Mail Contract 5 (MC2009-21 and CP2009-26)
    Priority Mail Contract 6 (MC2009-25 and CP2009-30)
    Priority Mail Contract 7 (MC2009-25 and CP2009-31)
    Priority Mail Contract 8 (MC2009-25 and CP2009-32)
    Priority Mail Contract 9 (MC2009-25 and CP2009-33)
    Priority Mail Contract 10 (MC2009-25 and CP2009-34)
    Priority Mail Contract 11 (MC2009-27 and CP2009-37)
    Priority Mail Contract 12 (MC2009-28 and CP2009-38)
    Priority Mail Contract 13 (MC2009-29 and CP2009-39)
    Priority Mail Contract 14 (MC2009-30 and CP2009-40)
    Priority Mail Contract 15 (MC2009-35 and CP2009-54)
    Priority Mail Contract 16 (MC2009-36 and CP2009-55)
    Priority Mail Contract 17 (MC2009-37 and CP2009-56)
    Outbound International
    Direct Entry Parcels Contracts
    Direct Entry Parcels 1 (MC2009-26 and CP2009-36)
    Global Direct Contracts (MC2009-9, CP2009-10, and CP2009-11)
    Global Expedited Package Services (GEPS) Contracts
    GEPS 1 (CP2008-5, CP2008-11, CP2008-12, and CP2008-13, CP2008-
18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23, and 
CP2008-24)
    Global Expedited Package Services 2 (CP2009-50)
    Global Plus Contracts
    Global Plus 1 (CP2008-8, CP2008-46 and CP2009-47)
    Global Plus 2 (MC2008-7, CP2008-48 and CP2008-49)
    Inbound International
    Inbound Direct Entry Contracts with Foreign Postal 
Administrations (MC2008-6, CP2008-14 and CP2008-15)
    International Business Reply Service Competitive Contract 1 
(MC2009-14 and CP2009-20)
Competitive Product Descriptions
    Express Mail
    [Reserved for Group Description]
    Express Mail
    [Reserved for Product Description]
    Outbound International Expedited Services
    [Reserved for Product Description]
    Inbound International Expedited Services
    [Reserved for Product Description]
    Priority
    [Reserved for Product Description]
    Priority Mail
    [Reserved for Product Description]
    Outbound Priority Mail International
    [Reserved for Product Description]
    Inbound Air Parcel Post
    [Reserved for Product Description]
    Parcel Select
    [Reserved for Group Description]
    Parcel Return Service
    [Reserved for Group Description]
    International
    [Reserved for Group Description]
    International Priority Airlift (IPA)
    [Reserved for Product Description]
    International Surface Airlift (ISAL)
    [Reserved for Product Description]
    International Direct Sacks--M-Bags
    [Reserved for Product Description]
    Global Customized Shipping Services
    [Reserved for Product Description]
    International Money Transfer Service
    [Reserved for Product Description]
    Inbound Surface Parcel Post (at non-UPU rates)
    [Reserved for Product Description]
    International Ancillary Services
    [Reserved for Product Description]
    International Certificate of Mailing
    [Reserved for Product Description]
    International Registered Mail
    [Reserved for Product Description]
    International Return Receipt
    [Reserved for Product Description]
    International Restricted Delivery
    [Reserved for Product Description]
    International Insurance
    [Reserved for Product Description]
    Negotiated Service Agreements
    [Reserved for Group Description]
    Domestic
    [Reserved for Product Description]
    Outbound International
    [Reserved for Group Description]
Part C--Glossary of Terms and Conditions [Reserved]
Part D--Country Price Lists for International Mail [Reserved]

[FR Doc. E9-23488 Filed 9-28-09; 8:45 am]
BILLING CODE 7710-FW-P