[Federal Register Volume 74, Number 231 (Thursday, December 3, 2009)]
[Notices]
[Pages 63416-63494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-28828]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE


Change in Rates and Classes of General Applicability for 
Competitive Products

AGENCY: Postal Service.

ACTION: Notice of a change in rates of general applicability for 
competitive products.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth changes in rates of general 
applicability for competitive products.

DATES: Effective Date: January 4, 2010.

FOR FURTHER INFORMATION CONTACT: Daniel J. Foucheaux, Jr., 202-268-
2989.

SUPPLEMENTARY INFORMATION: On September 22, 2009, pursuant to their 
authority under 39 U.S.C. 3632, the Governors of the Postal Service 
established prices and classification changes for competitive products. 
The Governors' Decision and the record of proceedings in connection 
with such decision are reprinted below in accordance with Sec.  
3632(b)(2). Implementing regulations were published in the Federal 
Register on November 10, 2009 (74 FR 57899).

Stanley F. Mires,
Chief Counsel, Legislative.
Governors' Decision No. 09-13

Decision of the Governors of the United States Postal Service on 
Changes in Rates and Classes of General Applicability for Competitive 
Products (Governors' Decision No. 09-13)

September 22, 2009

Statement of Explanation and Justification

    Pursuant to our authority under section 3632 of title 39, as 
amended by the Postal Accountability and Enhancement Act of 2006 
(``PAEA''), we establish new prices of general applicability for the 
Postal Service's shipping services (competitive products), and such 
changes in classifications as are necessary to define the new prices. 
The changes are described generally below, with a detailed description 
of the changes in the attachment. The attachment includes the draft 
Mail Classification Schedule sections with changes in classification 
language in legislative format, and new prices displayed in the price 
charts.
    As shown in the nonpublic annex being filed under seal herewith, 
the changes we establish should enable each competitive product to 
cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result 
in competitive products as a whole complying with 39 U.S.C. 3633(a)(3), 
which, as implemented by 39 CFR 3015.7(c), requires competitive 
products to contribute a minimum of 5.5 percent to the Postal Service's 
institutional costs. Accordingly, no issue of subsidization of 
competitive products by market dominant products should arise (39 
U.S.C. 3633(a)(1)). We therefore find that the new prices and 
classification changes are in accordance with 39 U.S.C. 3632-3633 and 
39 CFR 3015.2.

I. Domestic Products

A. Express Mail

    Overall, the Express Mail price change represents a 4.5 percent 
increase. The existing structure of zoned Retail, Commercial Base and 
Commercial Plus price categories is maintained.
    Retail prices will increase an average of 4.5 percent. The price 
for the Retail flat-rate envelope, almost half of all

[[Page 63417]]

Express Mail volume, will increase by 4.5 percent to $18.30.
    The Commercial Base price category offers lower prices to customers 
who use online and other authorized postage payment methods. The 
average price increase for Commercial Base will be the same as Retail, 
4.5 percent.
    The Commercial Plus price category offers even lower prices to 
large-volume customers who ship at least 6,000 Express Mail pieces 
annually. Commercial Plus prices will increase 4.4 percent.

B. Priority Mail

    Overall, Priority Mail prices will increase by 3.3 percent. In 
addition to the existing Retail, Commercial Base, and Commercial Plus 
price categories, a new price category, Commercial Plus Cubic, is being 
introduced.
    Retail prices will increase an average of 3.9 percent. Flat-rate 
box prices will be: Small, $4.95; Medium, $10.70; Large, $14.50; and 
Large APO/FPO, $12.50. The name of the medium-sized box is changed from 
``Regular'' to ``Medium.''
    The Commercial Base price category offers lower prices to customers 
using online and other authorized postage payment methods. The average 
price increase for Commercial Base will be 2.9 percent.
    The Commercial Plus price category offers even lower prices to 
customers who ship more than 100,000 Priority Mail pieces or more than 
600 Priority Mail Open and Distribute containers annually. The average 
price increase for Commercial Plus will be 0.9 percent. Two new 
innovations in Commercial Plus will be added this year--a half pound 
price starting at $4.22, and a flat-rate padded envelope priced at 
$4.95.
    The new category, Commercial Plus Cubic, offers attractive prices, 
based on package size (cubic volume), to customers who ship more than 
250,000 Priority Mail pieces annually, for their shipments of smaller, 
cost-efficient packages that weigh less than 20 pounds which are no 
larger than [frac12] cubic foot in volume.

C. Parcel Select

    On average, prices for Parcel Select, the Postal Service's bulk 
ground shipping product, will increase 4.7 percent. For destination 
entered parcels, the average price increases are 3.9 percent for 
parcels entered at a destination delivery unit (DDU), 6.9 percent for 
parcels entered at a destination plant (DSCF) and 6.9 percent for 
parcels entered at a destination Bulk Mail Center (DBMC). There are no 
changes to nondestination-entered parcels.
    The Loyalty Incentive and Growth Incentive rebates are being 
eliminated as of the end of May 2010. Also, the 50-piece volume minimum 
for the Barcoded Nonpresort price category is eliminated for parcels 
paid using PC Postage.
    Non-substantive, editorial changes are also made. Headings 
separating destination-entered and nondestination-entered categories 
are added to the list of price categories. The price category list is 
also modified to conform to the way the price charts are displayed, 
including elimination of repetitive notes from the price charts.

D. Parcel Return Service

    Parcel Return Service prices will have an overall price increase of 
3.0 percent. Prices will increase 3.3 percent for parcels picked up at 
a Bulk Mail Center (RBMC) and 2.1 percent for parcels picked up at a 
delivery unit (RDU).

E. Premium Forwarding Service

    There are no changes.

II. International Products

A. Expedited Services

    International expedited services include GXG and Express Mail 
International (EMI). Overall, GXG prices will rise by 4.1 percent, and 
EMI will be subject to an overall 2.9 percent increase. The existing 
structure of both services will remain the same.

B. Priority Mail International

    The overall increase for Priority Mail International (PMI) will be 
3.0 percent. The existing structure of PMI will remain the same; 
however, minor edits are made to the Mail Classification Schedule for 
PMI parcels by creating a single maximum dimension for both rectangular 
and non-rectangular pieces. Corresponding changes are also made to the 
classification language for inbound air parcels, as well as PMI parcels 
entered under customized agreements. In addition, rate group 6 is 
assigned to Cuba. This corrects the MCS text, since the Postal Service 
currently offers the full array of outbound letter post, including PMI 
flat-rate envelope and small flat-rate box, to that destination. The 
name of the medium-sized flat-rate box is changed from ``Regular'' to 
``Medium.''

C. Other

    A minor classification change is included in the country schedules 
in Part D of the MCS. Specifically, rate groups are assigned to Kosovo. 
These country group assignments correspond to those for Serbia.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on January 4, 2010. We direct the Secretary to 
have this decision published in the Federal Register in accordance with 
39 U.S.C. 3632(b)(2). We also direct management to file with the Postal 
Regulatory Commission appropriate notice of these changes.

By The Governors:
-----------------------------------------------------------------------
Carolyn Lewis Gallagher
Chairman
BILLING CODE 7710-12-P

[[Page 63418]]

[GRAPHIC] [TIFF OMITTED] TN03DE09.002


[[Page 63419]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.003


[[Page 63420]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.004


[[Page 63421]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.005


[[Page 63422]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.006


[[Page 63423]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.007


[[Page 63424]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.008


[[Page 63425]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.009


[[Page 63426]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.010


[[Page 63427]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.011


[[Page 63428]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.012


[[Page 63429]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.013


[[Page 63430]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.014


[[Page 63431]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.015


[[Page 63432]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.016


[[Page 63433]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.017


[[Page 63434]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.018


[[Page 63435]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.019


[[Page 63436]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.020


[[Page 63437]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.021


[[Page 63438]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.022


[[Page 63439]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.023


[[Page 63440]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.024


[[Page 63441]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.025


[[Page 63442]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.026


[[Page 63443]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.027


[[Page 63444]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.028


[[Page 63445]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.029


[[Page 63446]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.030


[[Page 63447]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.031


[[Page 63448]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.032


[[Page 63449]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.033


[[Page 63450]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.034


[[Page 63451]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.035


[[Page 63452]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.036


[[Page 63453]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.037


[[Page 63454]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.038


[[Page 63455]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.039


[[Page 63456]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.040


[[Page 63457]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.041


[[Page 63458]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.042


[[Page 63459]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.043


[[Page 63460]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.044


[[Page 63461]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.045


[[Page 63462]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.046


[[Page 63463]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.047


[[Page 63464]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.048


[[Page 63465]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.049


[[Page 63466]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.050


[[Page 63467]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.051


[[Page 63468]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.052


[[Page 63469]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.053


[[Page 63470]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.054


[[Page 63471]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.055


[[Page 63472]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.056


[[Page 63473]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.057


[[Page 63474]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.058


[[Page 63475]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.059


[[Page 63476]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.060


[[Page 63477]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.061


[[Page 63478]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.062


[[Page 63479]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.063


[[Page 63480]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.064


[[Page 63481]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.065


[[Page 63482]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.066


[[Page 63483]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.067


[[Page 63484]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.068


[[Page 63485]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.069


[[Page 63486]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.070


[[Page 63487]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.071


[[Page 63488]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.072


[[Page 63489]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.073


[[Page 63490]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.074


[[Page 63491]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.075


[[Page 63492]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.076


[[Page 63493]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.077


[[Page 63494]]


[GRAPHIC] [TIFF OMITTED] TN03DE09.078

[FR Doc. E9-28828 Filed 11-30-09; 4:15 pm]
BILLING CODE 7710-12-C